The Madsen Gold Mine: De-risking Resources, Building Metal Inventory and Planning a Mine Re-Start

The following is a paid email campaign from West Red Lake Gold Mines. We do not endorse any specific company, product, or service mentioned in this email. Our mission-critical information is sent each weekend and is separate, therefore unsubscribing from this email will also stop your Free Morgan Report subscription. The Madsen Gold Mine: De-risking Resources, Building Metal Inventory and Planning a Mine Re-Start With gold trading around USD $2,400/ounce, interest in gold is now spreading from central banks, to institutions to the general public. Wells Fargo reports that 1 ounce gold bars are currently generating up to [$200 million a month in sales for Costco.]( There is a growing consensus that we are in the early stages of a sustained precious metals bull run. "While the U.S. and global money supply will continue to surge over the next decade and beyond," [states Forbes contributor Jesse Colombo]( "The supply of physical gold and silver bullion will remain fairly stable in contrast, which is likely to lead to much higher precious metals prices." The West Red Lake Gold (WRLG.V) team believes that owning shares in a near-term gold producer can provide good leverage to the rising gold price. Our flagship asset - The Madsen Gold Mine in Ontario - was targeted for acquisition by Canadian philanthropist and financier Frank Giustra who formed Wheaton River Minerals which was sold to Newmont for USD $10 billion in 2019. The previous operator was under-capitalized. Debt repayment obligations forced the company into a quick-to-cash-flow mine model that was expensive and inefficient and lead to sub-economic production. One of the advantages of working with Frank Giustra's group is that it has connections with a lot of resource companies. We identified young managers who have worked in the trenches, done the hard yards. The Madsen Gold Mine - is fully permitted, and has a brand-new 800+ tonne per day mill, a tailings and water treatment facility. [1] The strategy for the Madsen Mine Restart is: 1. De-risk Resources (in-fill and expansion drilling, UG development 2. Restart Planning (engineering, mill expansion assessment, optimisation 3. Restart Execution (assembling team, community relations, focus on operability and profitability). The Madsen Mine deposit presently hosts an NI 43-101 Indicated resource of 1.65 million ounces of gold grading 7.4 g/t gold and an Inferred resource of 0.37 Moz of gold grading 6.3 g/t gold. [2.] [3.] We are financing our mine-restart program with minimal share dilution to existing shareholders. On April 4, 2024 we closed a second and [final tranche of a private placement of gold linked notes]( , bringing the total value of notes issued to US$27,165,631, equivalent to about $37 million CAD. Each Offering Unit contains notes worth USD $1,000 and 710 warrants. Each warrant entitles the holder to purchase one share of WRLG at C$0.95 until March 19, 2029. The gold-linked note holders will receive 12% interest per annum, about 280% higher than the [yield on a Canada 2-year government bond](. WRLG Gold-linked Notes Transaction Highlights - Gold placed in escrow into a gold trust account - Beginning March 31, 2026, principal reduced on a quarterly basis. - Final payment on December 31, 2029. - Notes will amortize based on a gold floor price of US$1,800/ounce. - Excess proceeds (spot price - floor price) paid to investors as a premium. We are currently conducting definition drilling within South Austin to continue building an inventory of high-confidence ounces for eventual restart of the Madsen mill. [April 18, 2024 DRILL HIGHLIGHTS:]( - Hole MM24D-07-4198-001 Intersected 1.1m @ 68.36 g/t Au, from 74.25m to 75.35m, Including 0.5m @ 145.44 g/t Au, from 74.85m to 75.35m - Hole MM24D-07-4198-002 Intersected 3.95m @ 13.83 g/t Au, from 7.55m to 11.5m, Including 0.5m @ 105.72 g/t Au, from 7.55m to 8.05m. - The high-grade mineralization encountered near the collar (top of hole) in Holes MM24D-07-4198-002 and MM24D-07-4198-006 is believed to be the down-dip continuation of a mineralized zone defined further up in the system. These intercepts are expected to extend this zone in future model updates. FIGURE 3. South Austin plan view drill section showing assay highlights for Holes MM24D-07-4198-001 through -006.[1] Previously announced highlights on the North and South Austin drilling can be viewed at the following links: - [West Red Lake Gold Intersects 25.12 g/t Au over 5.5m, 39.46 g/t Au over 2m and 18.60 g/t Au over 4m at South Austin Zone - Madsen Mine]( (March 4, 2024) - [West Red Lake Gold Intersects 9.15 g/t Au over 3.3m and 10.66 g/t Au over 2.6m at North Austin Zone - Madsen Mine]( (February 7, 2024) - [West Red Lake Gold Intersects 47.44 g/t Au over 3.2m, 21.64 g/t Au over 7m and 296.83 g/t Au over 1m at South Austin Zone - Madsen Mine]( (December 5, 2023) - [West Red Lake Gold Intersects 27.15 g/t Au over 10.28m and 22.31g/t Au over 8.5m at North Austin Zone - Madsen Mine]( (November 21, 2023) We have made a decision to optimize this mine before restarting production. This involves infill and expansion drilling, underground development and engineering studies. Now that we have added a second underground drill at North Austin, we expect to be generating a steady stream of positive news flow from North and South Austin over the coming months. Shane Williams President and Chief Executive Officer of WRLG FOR FURTHER INFORMATION, PLEASE CONTACT: Freddie Leigh Tel: (604) 609-6132 Email: investors@westredlakegold.com or visit the WRLG website at []( References: - SRK Consulting. (2021). Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada (West Red Lake Gold Mines, Ed.) [Review of Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada. - Mineral resources are estimated at a cut-off grade of 3.38 g/t Au and a gold price of US1,800/oz. Please refer to the technical report entitled "Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada", prepared by SRK Consulting (Canada) Inc. and dated June 16, 2023. A full copy of the SRK report is available on the Company's website and on SEDAR+ at [www.sedarplus.ca]( - Mineral resources that are not mineral reserves do not have demonstrated economic viability. Please refer to the technical report entitled "Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada", prepared by SRK Consulting (Canada) Inc. and dated June 16, 2023. The Madsen Resource Estimate has an effective date of December 31, 2021 and excludes depletion of mining activity during the period from January 1, 2022 to the mine closure on October 24, 2022 as it has been deemed immaterial and not relevant for the purpose of the updated report. A full copy of the SRK report is available on the Company's website and on SEDAR+ at [www.sedarplus.ca]( Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Because individual investment objectives vary, this Summary should not be construed as advice to meet the particular needs of the reader. Any opinions expressed herein are statements of our judgment as of this date and are subject to change without notice. Any action taken as a result of reading this independent market research is solely the responsibility of the reader. The Morgan Report is not and does not profess to be a professional investment advisor, and strongly encourages all readers to consult with their own personal financial advisors, attorneys, and accountants before making any investment decision. The Morgan Report and/or independent consultants or members of their families may have a position in the securities mentioned. 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