Overview

GOLKOR, INC. (“Golkor” or the “Company”) and GS Mining Company, LLC (“GS Mining” or the “Partner”) have entered into an agreement to acquire an 80% working interest in GS Mining’s portfolio of gold producing properties and mills in the Central City/Black Hawk/Idaho Springs mining districts of the Front Range of the Rocky Mountains in Colorado. The Company’s principal projects are the Bates Hunter Mine, the Becker Bates Mine, and the Golden Gilpin Mill. To date GS Mining has expended approximately $26 million U.S. dollars over 7 years focused on developing and rehabilitating the Bates Hunter Mine and Golden Gilpin Mill as well as acquiring additional mining and mill properties to expand the long-term development and production plan. The Golden Gilpin Mill is currently in full operating condition, fully permitted and ready to continue processing gold bearing material at the Bates Hunter Mine.

Key Highlights

• Location: Bates-Hunter Mine and Golden Gilpin Mill are in Central City and Blackhawk Colorado, in close proximity to Denver. They are on main roads with electric power and municipal water and sewer which ensure easy access to infrastructure, labor, and equipment, minimizing logistical constraints
• Historical High-Grade Ore: Gold assays as high as 22.86 oz/t suggest high profitability from concentrated operations. Recent sampling returned values ranging from 0.92 to 11.7 oz/t gold and 1.32 to 28.2 oz/t silver. Historic reports by the United States Geological Society and others have determined that the Bates Vein comprises several thousand feet of one of the highest grades and most productive veins in Colorado
• Gold Potential: Significant high-grade gold potential multimillion ounce deposit, within just the Bates Hunter mine. Adjacent properties including Becker Bates and 17 additional claims and mines are all on the same vein systems as the Bates Hunter and are projected to contain substantial amounts of gold. This area was dubbed by the National Geographic Magazine as “The Richest Square Mile on Earth.”
• Permitted Operations: Current operations at the project are fully permitted, allowing for underground mining and mill operations, with all necessary environmental, state and municipal clearances
• The Processing Mill: The Golden Gilpin Mill is a fully refurbished and permitted ore processing facility which is now ready to process material at a rate of 24 tons per day per 8 hour shift, which will scale up to 100 tons per day in Phase 2 of our development plan
• Production Testing: Pilot production of gold bearing ore was successfully undertaken in 2024 Q1. These operations produced 30% free milling gold, and 70% flotation concentrate feedstock for export from stope fill gold bearing ore removed from the Bates Hunter
• New Infrastructure: More than $24 million was spent on the rehabilitation and improvement of an EPA approved water treatment facility, a rehabbed mill, reopened mine, reenforced tunnel / shaft upgrades throughout the mine, workshop, 2-compartment 85-foot-tall steel head frame and a single-drum 5-foot hoist as well
• Drilling Program: An extensive drilling program is planned while the company continues to define and expand its gold reserves
• Capital Requirements: $3.5 milliion for Phase One and 1.5 Million for Phase Two

Mining in Colorado

Mining was the most significant industry in nineteenth- and early twentieth-century Colorado and has remained important since that time. The Pike’s Peak Gold Rush brought unprecedented numbers of people into the region that led to the establishment of many large camps that would later turn into cities such as Denver and Boulder. By the time Colorado became a recognized state in 1876, gold mining operations were already being run near Leadville, Breckenridge, Central City, Idaho Springs, Telluride, and Cripple Creek. Mining in all its phases remained a large part of the Colorado economy until the early twentieth century. The industry also contributed to significant industrial and technological advances. At various times throughout its history, Colorado has been the leading U.S. producer of gold,

silver, molybdenum, lead, zinc, uranium and tungsten. Other metals that have been mined in Colorado include copper, tin, vanadium, iron, lithium and manganese. Newmont’s Cripple Creek & Victor Gold Mine (previously referred to as the Cresson Mine) is the all-time highest producing large-scale gold mining operation in the state, having produced over 4.0 million ounces of gold since 1995 and currently produces 322,000 ounces of gold annually.

Central City is Colorado’s oldest and most important mining district in the Front Range Mineral Belt. The Central City Mining District has produced over 4.0 million ounces of gold, with the majority of gold production occurring between 1859 and 1903 The Central City Mining District is referred to as the “Richest Square Mile on Earth” with recent studies estimating that only 15% of the existing gold was ever extracted. The Bates Vein was the second vein discovered in the Central City district.

Although the Bates Vein was one of the richest and most productive in the early history of the area, it was never consolidated and mined to any great depth and has only been operated in intervals.

Bates Hunter Mine Project

CENTRAL CITY MINING DISTRICT, COLORADO

Situated approximately 35 miles west of Denver. Central City is one of the oldest and most productive mining districts in Colorado, having historically produced over 4.13 million ounces of gold and 118.9 million ounces of silver. The Bates Hunter Mine is positioned within the town limits of Central City and Black Hawk, Colorado, encompassing 30 patented lode mining claims and 6 parcels of land, offering both surface and mineral rights. The project area is characterized by rugged mountainous terrain at an elevation of approximately 8,500 feet.

Despite the fragmented land ownership that has previously impeded large-scale development, exploration and mining activities at Bates Hunter have shown great potential. Historical mining in the Bates Vein, which was one of the richest and most productive veins in the area, produced around 154,000 ounces of gold. The mine was primarily restricted to shallow depths, and development has been limited, though significant strides have been made in rehabilitating and dewatering the Bates Hunter shaft, which currently extends to 745 feet.

The Bates Hunter shaft has been dewatered and rehabilitated to its full depth, with a head frame and hoist system in place that is capable of supporting production at rates of up to 200 tons per day. In addition to the mine shaft, supporting infrastructure includes compressors, a water treatment plant, and office and shop facilities. The water treatment plant, with a throughput of over 200,000 gallons per day when needed, effectively manages the mine water inflow, and its capacity may be expanded to facilitate more rapid dewatering and further the mine rehabilitation.

Significant gold mineralization has been identified at multiple levels in the mine, with assays showing encouraging results. On the 300-foot level, samples returned gold grades ranging from 0.34 to 1.8 ounces per ton (opt). On the 700-foot level, ore stopes exposed at widths of up to 4 feet showed gold assays ranging from 0.4 to 4.60 opt. In addition, a 2008 drill program targeted exploration in the hanging and footwall of the Bates Vein, returning an intercept of 1.74 opt gold and 2.87 opt silver over a 1.2-foot interval at a distance of 60.8 feet into the footwall. Recent sampling returned values ranging from 0.92 to 11.7 oz/t gold and 1.32 to 28.2 oz/t silver.

The mineralization in the Bates Hunter Mine is hosted by two types of veins. The first contains high-grade gold, some silver, and elevated levels of copper, arsenic, and molybdenum. The second type consists of fine- grained silver-telluride (hessite) veins associated with chalcedonic quartz and Tertiary intrusive dikes. These veins offer further exploration potential for both gold and silver resources.

The project’s permit status is favorable, with the Colorado Division of Reclamation, Mining, and Safety issuing Permit M-90-041, which is currently active. Additional permits for surface exploration, drilling and water discharge have been obtained, allowing for continued mining and environmental compliance.

In summary, the Bates Hunter Mine represents a promising opportunity in a historically rich mining district. With successful rehabilitation efforts, encouraging gold assays, and a well-defined plan for further exploration and development, the Mine is poised for future success as a rich underground mining operation.

The Bates, German and Gregory high grade veins.

There are two varieties of generally east-west trending veins in the Bates Hunter Mine mineralization. The first type contains

high-grade gold, some silver, and anomalous copper, arsenic, and molybdenum. The second consists of thin veins of generally Stage 4 mineralization containing very fine-grained black silver-telluride (hessite) and anomalous copper, bismuth, arsenic, antimony, molybdenum and lead. These silver-telluride veins occur next to and parallel with thin tan Tertiary intrusive dikes with tan banded chalcedonic quartz. A 2008 drill program was focused on exploration drill holes to identify the possibility of mineral resources specific to gold and silver in the hanging and footwall of the previously stopped areas in the Bates Hunter Mine. Two horizontal core holes were drilled underground at the 112-foot level of the Bates Hunter shaft into the hanging and footwall in a perpendicular direction to the general trend of the Bates Vein. Samples taken returned a significant intercept with 1.74 oz/t gold and 2.87 oz/t of silver at a distance of 60.8 feet into the footwall, over an interval of 1.2 feet. Additional 2019 sampling of the Bates Vein at various levels ending at the 240 Level returned significant values.

Gold Grade Sampling Map

Golden Gilpin Mill

The Golden Gilpin Mill, located in the Black Hawk Mining District, is set to become a fully operational processing facility capable of milling up to 100 tons per day commencing at 24 tons per day in the second quarter of 2025 and scaling up to its full potential by the end of the year. Initially, the mill began “Phase 1” pilot testing operations in October 2023, processing up to 24 tons per day per 8 hour shift, and produced gold for sale while the operators sharpened the plant’s recovery efficiencies to prepare for increased production volume planned in 2025. The company plans to produce 30% free milling gold and 70% flotation concentrate from the Bates Hunter Mine including continuation of veins into the Becker Bates mineralization. Based upon all historic and currently available data, the Company believes that these veins will have long term gold supply due to their proximity to deep shafts with proven recovery to 2,000+ feet.

To increase production, the company has allocated a $3.5 million budget for dewatering, extraction of high-grade gold ore and the installation of key equipment. These upgrades, expected to be completed by the end of Q3 2025, will enable the mill to operate 24/7.

To further enhance recovery efficacy, the mill can implement advanced pre-processing technologies such as improved crushing, screening, and finer grinding circuits. Adding gravity separation equipment, such as a Knelson or Falcon concentrator, can help improve free milling gold recovery, while upgraded flotation circuits and automation for real-time monitoring will optimize the overall process.

These advancements, combined with the increased milling capacity, will ensure the Golden Gilpin Mill operates efficiently and effectively, maximizing gold recovery and profitability. With these improvements in place, the turnkey processing mill will be ready to meet its production targets while providing a sustainable solution for gold extraction.

Bates Hunter Mine Development Plan

PHASE 1: 200 TO 500 FOOT LEVELS (Stope Fill Recovery & Processing)

Stope Fill Recovery

The Company has established a comprehensive mine development plan to unlock the full potential of the Bates Vein at the Bates Hunter Mine. To date, significant exploration and rehabilitation have been completed, including dewatering, core drilling, channel and grab sampling, and shaft refurbishment. These efforts revealed consistent gold values in stope fill material, with approximately 1,000 tons already removed and bagged for milling, while an estimated 9,000 tons remain in place. Further rehabilitation efforts in upper levels suggest a conservative total of 10,000 tons of gold-bearing stope fill material, with additional tonnage likely to be uncovered as work progresses.

The Bates Hunter shaft has been structurally upgraded, maintaining a stable, two-compartment timbered design that extends at least 40 feet below the 730 Level. Plans include deepening the shaft with successive raises, ensuring continuous operability during expansion. Development on the 700 Level is underway, with a station and loading chute to facilitate the transport of fresh feed to the Golden Gilpin mill. The 700 Level will feature a 5×7-foot drift driven eastward along the Bates Vein, with regular sampling to guide future overhead stoping and to evaluate the feasibility of extending the drift eastward if significant gold values persist.

Future development will also target a new 800 Level below all current workings, potentially adding 30,000 tons of gold-bearing material across a 3,500-foot strike. Connections between the Bates Hunter and Becker Bates shafts provide improved access, ventilation, and secondary egress options, while shaft muckers and ventilation improvements further optimize safety and efficiency.

The fully rehabilitated Golden Gilpin mill, with a capacity of upto 100 tons per day, supports consistent processing aligned with Bates Hunter’s permitted 70,000-ton annual production capacity. The mill’s key components, including the jaw crusher, ball mill, and flotation cells, have been upgraded to efficiently produce free gold and flotation concentrate. Recent assays of stope fill from the 240 and 500 Levels showed an average of 0.37 to 0.4 oz/t gold, while historical assays indicated even higher values of over 1.0 oz/t gold in some remnant materials.

The company’s strategic development plan for the Bates Hunter Mine includes a combination of stope fill recovery, shaft deepening, and targeted new level development, all aimed at sustaining long-term gold production. By aligning mine capacity with milling efficiency and maintaining flexibility for further expansion, the company is well-positioned to maximize resource recovery and support sustained operations in the Bates Vein.

PHASE 2: 500, 700 and 800 Levels (High Grade Mining)

The company’s production strategy at the Bates Hunter Mine focuses on maximizing recovery by targeting zones with high-grade ore, including areas historically yielding over 1 oz/ton of gold. This strategy leverages extensive sampling, including core drilling and channel sampling, to precisely identify the richest sections of the Bates Vein for selective mining. With high-grade ore confirmed in multiple assays, including those reported in the 2008 NI 43-101 Technical Report, the company is advancing development on the 700 and planned 800 Levels. Sampling throughout each section will guide overhead stoping in areas with the highest-grade gold concentrations, ensuring efficient, targeted extraction.

To capitalize on this high-grade material, the Golden Gilpin mill will undergo optimizations tailored for high-yield recovery. By adjusting flotation cell and grinding parameters, GS Mining aims to enhance gold recovery from each ton processed. New sorting technologies, such as X-ray fluorescence analyzers, will also be employed to rapidly verify grade on-site, allowing the team to prioritize ore exceeding 1/2 oz/ton before it reaches the mill. With a production capacity in Phase 1 supporting up to 70,000 tons per year, this focused approach aims to boost yield per ton, leveraging Bates Hunter’s rich gold-bearing zones and historical high-grade assay results.

PHASE 3: 500 Ton CIP Plant

Once sustained production of upto 100 tons per day is established at the Golden Gilpin Mill, the company will proceed with its Phase 3 of the production plan to build a 500 ton per day processing facility in a new location which management has chosen that is ideal for larger scale production, water treatment and tailings disposal involved with a commercial processing facility.