The KORE Mining Spin-Out of Karus Gold

0:11 Hi everyone, I'm pleased to introduce Scott Chbilcock, the President and CEO of Core Mining. Today I'll be introducing Scott on the core mining spin out of Keras Gold. Why are you spinning out your BC assets into a separate company to be called Keras Gold?

0:32 Because those assets are not being efficiently valued inside of Core Mining. Core put together 1,000 square kilometres of claims in the South Caribou Gold District. We drilled at our FG Gold project, delivering some incredible results, showing some great increases in scale for that project. We've drilled at Gold Creek, which is right near Spanish Mountain. We've got a lot of other prospects in the property. So there's a lot of excitement around the project inside of Core. However, those assets are not efficiently valued inside of Core because Core is primarily a Gold developer in California with our Imperial and Long Valley Gold projects. So we've taken the decision to deliver these assets to our shareholders in a standalone company that's got a lot of great potential and that's Keras Gold. We should see that coming out in January of 2020.

1:28 What can shareholders expect from Core Mining going forward?

1:32 Core's got an exciting plan for 2021 to build on the great foundational work we did in 2020. 2020 we delivered 2 preliminary economic assessments and put together a great team to support development of 2 low-risk heap leach gold projects, Imperial and Long Valley. 20 21, we were permitting large drill programs on each of those projects at Long Valley. The intent will be to step out and grow the mineralization that's behind the great P.A. And Imperial. We're stepping out to make new discoveries on our 28 kilometer trend that connects the operating Mesquite mine to our Imperial project then goes over to another old mine called Picacho. We've got great exploration opportunities and that's in parallel to moving forward with permitting Imperial to become a mine. The board was very comfortable with the PEA data and quality and economics, and we're moving forward, pushing that project into permitting and pursuing the environmental impact studies as part of the permitting process. So a lot going on inside CORE in 2021 and shareholders have a lot to look forward to.

2:44 What can shareholders expect from Keras Gold going forward?

2:48 Keras Gold has an incredible opportunity to capitalize on its strategic 1,000 square kilometer claim position in the Caribou Gold District of British Columbia. In 2021, Specifically, we're going to be following up on the great drill results we saw in our FG Gold project. In that project, we stepped out, down dipped and on strike to grow the mineralization and we see some incredible upside. In fact, there's still 14 holes that are in the lab that should be coming out to feed news flow into Keras Gold in Q1 2021. We've also got holes we drilled in 2020 at our Gold Creek project, which is the second project on the claim block. And we should see also those assays coming out in 2021. We'll be following that up with large drill programs at both Gold Creek and FG to pursue and follow up on the success from 2020.

3:40 And then we've got regional exploration on that huge claim block to go try and find new prospects and make new discoveries and ride the coattails of a Cisco Development Corp, which is dumping several hundred million dollars in development of the district. It'll bring a lot of attention to the caribou. And the second largest claim holder in the caribou region is core mining. This is why we chose to deliver these assets to core mining shareholders in the form of Karis Gold and Karis Gold is set up for great success in 2021. What is the purpose of the rights offering and do I have to participate?

4:19 The rights offering in Keras Gold will give Keras the capital to pursue its exciting 2021 exploration programs. The rights offering gives a Keras shareholder first access on a fair basis for all shareholders to the initial financing of that company. As a core shareholder receiving your Keras Gold shares you do not have to participate in the rights offering to receive your appropriate Keras Gold shares from core mining. However, it is a great opportunity to participate in early stage financing of an exciting new gold company. Why isn't Keras gold going public right away?

5:02 Well, 1st, Keras has an incredible exploration opportunity in 2021. And the company needs to move forward with securing resources, particularly drillers, and labor and other services to deliver an incredible exploration program in 2021. Program in 2021. Secondly, the board and core management wanted to give all shareholders fair access to financing Keras Gold. And we've decided to do that through a planned rights offering. And we're doing that privately so that it enables only core shareholders to participate in that financing. It also gives the company flexibility when it actually IPOs to make sure we do it in the best timing in the market. And finally, it allows Keras the time to configure itself privately so that it's best set up for success with an independent board and management going into a strong 2021.

5:59 Will Coors Insiders and Eric Sprott own Keras Gold at the same ownership levels as they do at Core?

6:06 Absolutely. All shareholders of Keras Gold will have the same pro forma ownership of Keras as they do in Core. And I think that is the reason why we're also pursuing a rights offering to enable all of those shareholders that supported Core and getting where it is today, the first access to financing of Keras Gold. So things go according to plan, we had good participation in the rights offering. It'll come out that the back end with a very similar share structure to Core, which will mature as Keras raises capital and pursues its great exploration plans in 2021. Why is Eric Sprott supporting this spin-out?

6:48 Eric Sprott is a 26% shareholder of Core Mining and has been a huge part of the success of Core in 2019 and 2020. For Keras Gold, Eric will remain a 26% shareholder of the Proforma company when it is spun out of core and that makes him a large shareholder. He's expressed to us that he's excited about the prospects. He loves early stage exploration. He loves building resources and he loves the torque he can get in his investment from an exploration coast. He's excited about also supporting Keras Gold. However, he's also indicated to us he plans to support core mining because he still wants to see the value creation potential, which is still yet untapped from Core's great portfolio of development assets in the Southwest Deserts of the United States.