James Tworek, CEO,

ELEMENT79 GOLD

"The acquisition of Plutus Gold and the Snowbird property is part of our extensive M&A strategy and is only the first of several potential opportunities."

Can you elaborate on the letter of intent Element79 has with Plutus Gold to ultimately acquire the Snowbird property?

We recently finished our work plan at our Dale property in Ontario, and our focus is now set on our M&A strategy to acquire easy to develop properties that we can add value to. The Snowbird property has seen a significant amount of historical work done. Our goal is now to conduct the analytical work to prove what the historical and recent drills yield. We have established that it will take approximately 10,000 to 20,000 m of additional drilling to prove up the resource, and as of December 15, we have completed a 3,000 m drilling program. The work is actually done by Plutus Gold with which we have an LOI in place. Element79 has opted to finance Plutus Gold's fall drill program via a drawable loan facility up to C$1.1 million in order to facilitate the fulfilment of Plutus Gold's final obligations remaining under the Option Agreement between Plutus Gold and Gitennes Exploration. We have already started the process of obtaining new mining permits for the next five years.

Is Element79 actively looking for more acquisitions?

The acquisition of Plutus Gold and the Snowbird property is part of our extensive M&A strategy and is only the first of several potential opportunities. We are very interested in expanding into the US and are looking at potential acquisition properties in Nevada. Our acquisition focus is on easy to develop properties and formerly producing mines in de-risked and politically friendly mining jurisdictions, which we can turn back on and develop within a relatively small capex budget and short timeframe to be able to bring cashflow into the company.

Can you elaborate on the Dale property and the advantages of operating in Timmins?

The acquisition of the Dale property was paired with the gentleman that had done the most exploratory work on it over the past decade. He helped our Thunder Bay team with the workplan, including sampling, trenching, prospecting, and following up on the drone based magnetic resonance which we completed earlier in 2021. Timmins is a great district to have a gold play in, and the Dale property was a solid starter kit for Element79 to get up and running with.

Element79 has a C$5 million equity capital facility agreement with Crescita Capital. What will this capital be used for?

With regards to the Dale property, Element79 did a small raise just prior to the IPO and had enough cash in hand for both the startup costs and the required work load for 2021/22. Our agreement with Crescita Capital is an equity draw down facility where we have to advise them 10 market days in advance for funding. We intend to use this financing for the acquisition of the Snowbird property and for what we are doing to close on the potential portfolio of properties in Nevada. By closing these intended acquisition deals, we will have melted through approximately C$3,5 million of the equity facility. Crescita Capital is onboard with our strategy and are open to the possibility of extending the equity facility dependent on Element79 reaching its milestones. We are also on the cusp of launching a fall 2021 financing campaign where we intend to raise C$2 million hard capital and C$1 million in flow through. The flow through funds will go towards further development of the Dale and Snowbird properties, and the hard capital into SG&A and the Nevada acquisition.

How do you see the gold landscape evolving as we move towards a green revolution?

Moving forward, I believe that globally, we will be seeing increased uses of gold, in terms of volume, as industrial demand goes up, as well as specialization uses such as electrification and space travel. There is going to be an increasing case for the need for precious metals, and Element79 is here to prove these metal resources up and get mines into production to meet this demand.