In March, 2023 Blackwolf signed an updated Memorandum of Understanding (“MOU”) with Dolly Varden Silver, New Moly LLC, Goliath Resources Limited, and Coast Copper Corp. (collectively, the “Companies”), to jointly study the viability of using New Moly’s Kitsault Project (“Kitsault” or the “Project”) as the potential site for a centralized polymetallic processing facility that could accept mineralized material from the Companies’ respective deposits (“Kitsault Polymetallic Mill”), located at or near tidewater in northwestern, B.C. and/or southeastern, Alaska (See Figure 1). Prior to signing the MOU, Blackwolf undertook initial discussions with Nisga’a Lisims Government regarding potential amendments to the Mines Act Permits for Kitsault to support a polymetallic mill.

The proposed site at Kitsault previously hosted a molybdenum mine. Within the past decade, Kitsault received Canadian Federal and Provincial Permits and given the buoyant molybdenum market, New Moly is now considering funding requirements to restart a larger scale project. The Project is located on the BC Hydro grid, has road access to the Nass Valley and tidewater access. The Kitsault Polymetallic Mill concept may assist to enhance and de-risk the potential restart of Kitsault.

The Companies have engaged Fuse Advisors Inc. to complete an initial assessment of the technical viability of the Kitsault Polymetallic Mill concept. By reviewing the respective metallurgical test work completed at the various deposits, Fuse will assess the potential for blending or batching mineralized material, potential process flow-sheets, potential throughputs from the various deposits and associated mill sizing and timelines. Fuse will also be completing industry benchmarking by assessing similar polymetallic mines and mills, which include Boliden’s operations in Scandinavia and the Jiama Project in China.