Phase 1: 200 to 500 foot levels (Stope Fill Recovery & Processing)

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.