Yerington Copper Project S-K 1300 Report Yerington, Nevada

Contents

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Tables

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Figures

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1 Executive Summary

1.1 Introduction

Lion Copper and Gold Corp. (Lion CG), a Canadian based mine development company, and its wholly owned U.S. subsidiaries, Singatse Peak Services, LLC (SPS) and Quaterra Alaska Inc. (Quaterra), are focused on the development of their Yerington Copper Project (the Project) in Lyon County, Nevada.

Lion CG commissioned AGP Mining Consultants Inc. (AGP) to prepare an Initial Assessment (IA) level Technical Report Summary (TRS) in accordance with the Securities and Exchange Commission (SEC) S-K 1300 regulations (Title 17, Part 229, Items 601 and 1300 through 1305) for its Yerington Copper Project located approximately 80 miles southeast of Reno.

The Project, with historical resources and water rights, was purchased by Lion CG in April 2011 after receiving Bona Fide Prospective Purchaser (BFPP) letters from the U.S. Environmental Protection Agency (USEPA), Nevada Division of Environmental Protection (NDEP) and Bureau of Land Management (BLM) to protect Lion CG from liability emanating from activities of the former mine owners and operations. 

1.2 Terms of Reference

This TRS was prepared on behalf of Lion CG by AGP. The purpose of the Report is to present the mineral resource estimates for the Yerington Copper Project in Lyon County, Nevada. The mineral resources used in the IA were prepared on the Yerington Deposit, W-3 stockpile, Vat Leach Tailings (VLT) stockpile and MacArthur Deposit collectively called the Yerington Copper Project.

Unless otherwise indicated, the English system of measurement is used in this Report.

A portion of the information was provided by Lion CG as the registrant as set forth in Chapter 25. The third party-firms AGP, Independent Mining Consultants, Inc. (IMC), Woods Process Services, LLC. (Woods) and NewFields have relied on sources of information specified in Chapter 24 with clarification provided by Lion CG personnel as appropriate.

1.3 Property Setting

The Yerington Copper Project (the Project) is located near the geographic center of Lyon County, Nevada, U.S.A., along the eastern flank of the Singatse Range. The Project includes both the historical Yerington Property, and the historic MacArthur open pit located approximately 4.5 miles to the northwest.

The Project is bordered on the east by the town of Yerington, Nevada which provides access via a network of paved and gravel roads that were used during previous mining operations.

The site is a brownfields site with some residual infrastructure in the form of office buildings, roads, and power to site. Residual material stockpiles and a sulfides tailings pond remain at the Yerington site. The MacArthur open pit is open and accessible from past mining activities.

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1.4 Mineral Tenure, Surface Rights, Water Rights, Royalties and Agreements

1.4.1 Mineral Tenure and Title

The Project consists of 5 fee simple parcels, 82 patented mining claims totalling 2,767.66 acres, and 1,113 unpatented lode and placer claims totalling 22,996 acres. The unpatented claims are located on lands administered by the U.S. Department of Interior, Bureau of Land Management (BLM).

The private land, patented claims, and 23 unpatented mining claims were acquired on April 27, 2011, when Lion CG closed a transaction under which assets of Arimetco, Inc. (Arimetco), a Nevada corporation, were acquired. The additional unpatented claims were staked prior to or subsequent to the acquisition by Lion CG.

The purchase of the Arimetco assets was accomplished through a US$500,000 cash payment, 250,000 shares of Quaterra common stock, and a 2% net smelter return royalty capped at $7.5 million on production from any claims owned by its subsidiary Quaterra Alaska, Inc (including Quaterra's MacArthur Property) in the Yerington mining district.

A portion of the claims around the historic MacArthur mine were acquired by exercising a "Mining Lease with Option to Purchase". The original purchase option dated September 13, 2005, between North and Quaterra, as amended, was exercised on February 9, 2015. The Company's purchase is subject to a two percent NSR with a royalty buy down option of $1,000,000 to purchase one percent of the NSR, leaving a perpetual one percent NSR.

A portion of the MacArthur claim group is also included in the area referred to as the "Royalty Area" in the Company's purchase agreement for the acquisition of Arimetco's Yerington properties. Under this agreement, MacArthur claims within this area (as well as the Yerington properties) are subject to a two percent NSR production royalty derived from the sales of ores, minerals and materials mined and marketed from the Property up to $7,500,000.

Ownership of the patented claims and private land is maintained through payment of county assessed taxes, while unpatented lode claims staked on BLM ground in the United States require a federal annual maintenance fee of $165 each, due by 12:00 pm (noon) on September 1 of each year. Further, each unpatented claim staked in Nevada requires an Intent to Hold fee of $12.00, plus filing fees, due by November 1 of each year payable to the County Recorder of the Lyon County. All annual fees have been paid, and Lion CG claims are current.

Unpatented lode claims have been staked by placing a location monument (two- by two-in by four-foot-high wood post) along the center line of each claim and two- by two-inch by four-foot-high wood posts at all four corners, with all posts properly identified in accordance with the rules and regulations of the BLM and the State of Nevada. Maximum dimensions of unpatented lode claims are 600 feet × 1,500 feet.

1.4.2 Project Background and Water Rights

Copper mining was first recorded at the Yerington Mine site from 1918-1920 at the Empire Mine, and later, beginning in 1953 by Anaconda. From that time forward, the mine operated under different companies until 1999 when Arimetco, the last operator, closed the operation. Soil and groundwater contamination from the former mining operations have been identified on the Property.

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As a result, a portion of the Property acquired by Lion CG in 2011 is now being remediated under jurisdiction of the Nevada Department of Environmental Protection (NDEP). Liability for the contamination on site is the responsibility of a third party which is actively engaged in remedial investigation and remediation activities under the supervision of NDEP.

The Company controls approximately 6,015-acre feet of certificated primary groundwater rights permitted for mining and milling use at the site. The Yerington Pit Lake is estimated to contain approximately 43,000-acre feet of water to be dewatered during mining activities. The company believes this water will have a variety of beneficial uses but will require some costs to make the water available for those beneficial uses.

1.4.3 Baseline Studies

There are 3,453 ac-ft of primary water rights that have been declared forfeited by the Nevada Division of Water Resources (NDWR). The Extension of Time for 1,629 ac-ft of primary water rights is subject to a non-renewal notice by the NDWR. Lion CG is appealing the State's forfeiture notice with the outcome uncertain at the time this IA has been published. While the appeal is underway, the forfeiture and non-renewal notices have been stayed by the Judge overseeing the hearing. Therefore, Lion currently owns 6,014 ac-ft of primary ground water rights permitted for mining use. Lion CG has an option to purchase additional water rights that are attached to the Bear private lands. If additional water is required for mining purposes, Lion CG may need to acquire additional water rights to meet the operational needs of the mine. The Yerington Property has been extensively evaluated through previous permitting efforts, environmental studies, and analyses as part of the regulatory compliance process associated with earlier mining operations. Since 2021, Lion CG has conducted additional baseline studies within the Project area to support ongoing exploration permitting and potential future Project development.

In conjunction with the efforts undertaken by Lion CG, prior operators conducted several baseline studies to support previously issued mining permits. These studies encompassed environmental, cultural, and archaeological assessments.

Should Lion CG proceed with mine development, additional baseline studies will be necessary. Given the extensive baseline studies already conducted by Lion CG and previous operators, most additional work would involve updating previously completed studies. New baseline studies would also be required to cover areas outside of the previously permitted project boundaries and to address changes in regulatory guidelines over time.

1.4.4 Permits

Lion CG has secured all necessary permits to proceed with site exploration and design activities. These permits encompass the Exploration Plan of Operations issued by the Bureau of Land Management (BLM) and reclamation and temporary discharge permits issued by the State of Nevada.

The permits required for full mine construction and operation will differ from those previously mentioned, which are intended for site exploration and resource definition. The Project is situated on a combination of private land managed by Lion CG and federal land administered by the BLM. Proposed mining operations for the Project will necessitate permits from both federal and State of Nevada regulatory agencies, supported by necessary environmental and socio-economic analyses, as well as public involvement. Lion CG has compiled a list of permits and authorizations required for mine development, all of which are standard for mining projects in Nevada.

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Existing permits, including reclamation and surety requirements relevant to exploration site disturbances, total $180,435 for Yerington and $460,836 for MacArthur. Lion CG is current with all necessary closure and reclamation sureties for all site permits.

During any future permitting process, closure and reclamation plans for mine development would be developed and approved by the relevant regulatory agencies. Mine permits would mandate the establishment of appropriate closure surety before the commencement of mine construction.

1.4.5 Considerations of Social and Community Impacts

Lion CG recognizes the significance of stakeholder support for the successful execution of the Project and conducts regular meetings with local stakeholders and regulatory agencies. The NDEP-BMRR contacted the Yerington Paiute Tribe and the Walker River Paiute Tribe prior to issuing the Yerington Temporary Authorization to Explore permit. Lion CG engaged proactively with representatives from both tribes before permit issuance to identify and address any potential concerns. No issues were raised by either tribe to Lion CG or NDEP-BMRR regarding the permit before its issuance.

Mine development will necessitate additional stakeholder engagement, when the decision to initiate the mine permitting process is made. Although the entirety of the proposed Project would be situated on either private land owned by Lion CG or public land available for development, Lion CG has been actively engaged with area stakeholders regarding its plans since 2011. This proactive approach will continue and will help facilitate a more efficient permitting process.

1.5 Geology and Mineralization

The Yerington Copper Project includes the Yerington Copper Deposit, MacArthur Copper Deposit and a portion of the Bear Deposit which represent three of four known porphyry copper deposits in the Yerington district. Like the Mason copper-molybdenum deposit located 2.5 miles to the west, the Yerington and Bear Deposits are hosted in Middle Jurassic intrusive rocks of the Yerington Batholith.

Copper mineralization on the Project occurs in all three phases of the Yerington Batholith. Intrusive phases, from oldest to youngest, are known as the McLeod Hill Quartz Monzodiorite (field name granodiorite), the Bear Quartz Monzonite, and the Luhr Hill Granite, the source of quartz monzonitic (i.e. granite) porphyry dikes related to copper mineralization.

Following uplift and erosion, a thick Tertiary volcanic section was deposited, circa 18-17 Ma. This entire rock package was then extended along northerly striking, down-to-the-east normal faults that flatten at depth, creating an estimated 2.5 miles of west to east dilation-displacement (Proffett and Dilles, 1984). The extension rotated the section such that the near vertically emplaced batholiths were tilted 60° to 90° westerly. Pre-tilt, flat-lying Tertiary volcanics now crop out as steeply west dipping units in the Singatse Range west of the Yerington Property. The easterly extension thus created a present-day surface such that a plan map view represents a cross-section of the geology.

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1.5.1 Yerington Copper Deposit

The general geometry of copper mineralization below the Yerington pit is an elongated body extending 6,600 feet along a strike of S62ºE. The modeled mineralization has an average width of 2,000 feet and has been defined by drilling to an average depth of 400-500 feet below the pit bottom at the 3,500-foot elevation.

The copper mineralization and alteration throughout the Yerington district and at the Yerington Deposit are unusual for porphyry copper camps in that the mineralization is "stripey," occurring in WNW striking bands or stripes between materials of lesser grade. Clearly, much of this geometry is influenced by the strong, district-wide WNW structural grain observed in fault, fracture and, especially, porphyry dike orientations. Altered, mineralized bands range in width from tens of feet to 200-foot-wide mineralized porphyry dikes mined in the Yerington pit by Anaconda.

Greenish, greenish blue chrysocolla (CuSiO₃.2H₂0) was the dominant copper oxide mineral, occurring as fracture coatings and fillings, easily amenable to an acid leach solution. Historic Anaconda drill logs note lesser neotocite, aka black copper wad (Cu, Fe, Mn), SiO₂ and rare tenorite (CuO) and cuprite (Cu₂O). Oxide copper also occurs in iron oxide/limonite fracture coatings and selvages.

Chalcopyrite (CuFeS₂) was the dominant copper sulfide mineral occurring with minor bornite (Cu₅FeS₄) primarily hosted in A-type quartz veins in the older porphyry dikes and in quartz monzonite and granodiorite, as well as disseminated between veins in host rock at lesser grade. The unmined mineralized material below the current pit bottom is primarily of chalcopyrite mineralization.

Surfaces were interpreted for alluvium (code 20), oxide (code 30) mineralization and sulfide (code 40) mineralization from the drill logs and soluble copper assays.

1.5.2 MacArthur Copper Deposit

The MacArthur Deposit is a large copper mineralized system containing near-surface acid soluble copper and the potential for a significant primary sulfide resource that remains underexplored. The MacArthur Deposit is hosted by Middle Jurassic granodiorite and quartz monzonite intruded by west-northwesterly-trending, moderate to steeply north-dipping quartz porphyry dike swarms.

The MacArthur Deposit consists of a 50 to 150-ft thick, tabular zone of secondary copper (in the form of oxides and/or chalcocite) covering an area of approximately two square miles. This mineralized zone has yet-to-be fully delineated. Limited drilling has also intersected underlying primary copper mineralization open to the north, but only partially tested to the west and east.

Oxide copper mineralization is most abundant and particularly well exposed in the walls of the legacy MacArthur pit. The most common copper mineral is chrysocolla; also present is black copper wad (neotocite) and trace cuprite and tenorite. The flat-lying zones of oxide copper mirror topography, exhibit strong fracture control and range in thickness from 50 to 100 feet. Secondary chalcocite mineralization forms a blanket up to 50 feet or more in thickness that is mixed with and underlies the oxide copper. Primary chalcopyrite mineralization has been intersected in several locations mixed with and below the chalcocite. The extent of the primary copper is unknown as many of the holes bottomed at 400 feet or less.

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The MacArthur Deposit is part of a large, partially defined porphyry copper system that has experienced complex faulting and post-mineral tilting. Events leading to the current geometry and distribution of known mineralization include: 1) Middle Jurassic emplacement of primary porphyry copper mineralization by quartz monzonite dikes intruding the Yerington batholith; 2) Late Tertiary westward tilting of the porphyry deposit from 60° to 90° through Basin and Range extensional faulting; 3) secondary (supergene) enrichment resulting in the formation of a widespread, tabular zone of secondary chalcocite mineralization below outcrops of oxidized rocks called leached cap; 4) oxidation of outcropping and near-surface parts of this chalcocite blanket, as well as oxidation of the primary porphyry sulfide system.

1.5.3 Bear Deposit

The Bear deposit has a similar regional geologic setting to other Jurassic-aged porphyry-style copper deposits in the Yerington district.

Copper mineralization of the Bear Deposit occurs in all three phases of the Yerington Batholith. Intrusive phases, from oldest to youngest, are known as the McLeod Hill Quartz Monzodiorite (field name granodiorite), the Bear Quartz Monzonite, and the Luhr Hill Granite, the source of quartz monzonitic (i.e. granite) porphyry dikes. The Bear Quartz Monzonite and quartz monzonite porphyry dikes are the main copper mineralizing bodies. Smaller rhyolite and andesite dikes are the last phases of the Yerington Batholith and post-date mineralization.

The above-described intrusive phases have been identified in the Bear Deposit (except for Luhr Hill Granite, but it is likely present). The intrusive phases lie beneath a portion of the overlying Tertiary volcanic section. The volcanic section is overlain by up to 800 feet of valley fill sediments.

The Bear deposit experienced the extensional normal faulting. The deposit has been extended in an east to southeast direction by a low angle normal fault (Bear Fault) and subsequently down dropped by high angle range front normal faults. Most of the deposit remains to the west in the footwall of the Bear fault while the remainder of the deposit lies to the east in the hanging wall of the Bear fault.

Oriented core measurements of drilling at the Bear Deposit indicate that above-described quartz monzonite porphyry dikes are dipping 40-50°.

1.6 History

Recorded production in the Yerington mining district dates back to 1883 as prospectors were attracted to and investigated colorful oxidized copper staining throughout the Singatse Range. Knopf (1918) reported that oxidized copper cropped out at the historic Nevada-Empire mine located above the south center of the present-day Yerington open pit. Knopf does not show or reference other mines or prospects that are underlain by the Yerington open pit footprint, as gravel and alluvial cover obscure bedrock over an approximate 0.75-mile radius around the Nevada-Empire Mine.

Information is sparse for the period from Knopf's reporting in 1918 until World War II, although it is likely that lessees worked in the Nevada-Empire during spikes in the copper price. Private reports describe material shipments and planned underground exploration from a northwest striking, southwest dipping structure at the historic Montana-Yerington Property area located approximately one mile west of the present-day Yerington pit.

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During the 1940s, Anaconda, at that time one of world's major copper producers, sent geologists to the Yerington district whose exploration outlined a 60-million-ton resource over the Yerington pit. During the early 1950s, the US government, citing the need for domestic copper production, offered "start-up" subsidies to Anaconda to open a copper mine in the Yerington district. Anaconda sank two approximately 400-foot-deep shafts in the present-day open pit and drove crosscuts to obtain bulk samples of oxidized rock for metallurgical study. Anaconda began operating the Yerington Property in 1952 and mined continually through 1979, producing approximately 1.744 billion pounds of copper from a deposit that contained 162 million tons averaging 0.54% Cu. Approximately 104 million tons of this total were oxidized copper material that was "vat leached" with sulfuric acid in 13,000-ton cement vats on a seven-day leach cycle. Sulfide materials were concentrated on site in a facility that was dismantled and sold following termination of mining in 1979. The cement copper and sulfide concentrates were shipped to the Anaconda's smelter in Montana.

In 1976, all assets of Anaconda, including the Yerington Property, were purchased by the Atlantic Richfield Company (ARC), which subsequently shut down dewatering pumps in the pit and closed the Yerington Property in 1979 due to low copper prices. At closure, before dewatering pumps were shut off, the Yerington Property plan hosted a pre-stripped, historical noncompliant reserve of 98 million tons averaging 0.36% Cu within the ultimate pit design.

The Yerington Property was acquired by CopperTek, a private Yerington company owned by Mr. Don Tibbals, in 1982. In the mid-1980's CopperTek began reprocessing waste rock and VLTs on Heap Leach Pads (HLPs), including an SXEW plant to produce cathode copper. CopperTek was acquired by Arimetco Inc. (Arimetco) in 1989. In 1989, Arimetco purchased the mine property from CopperTek, commissioned a 50,000-pound-per-day SXEW plant, and began heap leaching "sub-grade" dump rock stripped from the Yerington pit by Anaconda. Arimetco also processed VLTs (minus 3/8-inch oxidized tailings leached during Anaconda's operation) to some HLPs as well as trucked oxidized material from the MacArthur property located approximately five miles north of the Yerington Property. Arimetco produced some 95 million pounds of copper from 1989 to 1999, declaring bankruptcy in 1997 due to low copper prices. Arimetco terminated mining operations in 1997 and abandoned the property in early 2000.

In early 2000, NDEP assumed operation of the Yerington Property on a care and maintenance basis, primarily to ensure that HLP drain down solutions from Arimetco's heap leach facilities would continue to be maintained.

Following four years of due-diligence studies and negotiations with state and federal agencies, the property was acquired by Lion CG from the Arimetco bankruptcy court in April 2011, after multiple years of due diligence, including receiving bona fide prospective purchaser (BFPP) letters from the USEPA, NDEP and BLM to protect Lion CG from liability emanating from activities of the former mine owners and operations.

The Yerington Property is undergoing active remediation of the former Anaconda and Arimetco mining operations. with remediation efforts for priority Operable Units (OUs) such as the existing HLPs being completed in 2022.

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1.7 Exploration, Drilling and Sampling

The exploration programs completed to date and the extensive historical data available from previous mine operators are appropriate for the deposit style. Drilling, collar surveying, and geological and geotechnical logging are consistent with industry-standard practices.

Drill spacing varies from approximately 100 ft in the better drilled areas to 300-400 ft on the less well drilled portions of the project.

The sample preparation, analysis, quality control, and security procedures conducted by Lion CG are acceptable for mineral resource estimation. The sample preparation, analysis, quality control, and security procedures are sufficient to provide reliable data to support estimation of mineral resources. The information for the historic data is limited but is primarily located within mined out areas.

IMC and AGP conclude that the copper grades are adequately accurate and error-free to support mineral resource estimation. Classification of Measured, Indicated and Inferred Mineral Resource have been assigned according to S-K 1300 definitions.

1.7.1 Yerington Copper Deposit

The Mineral Resource estimate for the Yerington Copper Deposit is based on historic and recently completed drill hole data consisting of total copper (TCu) assays, geological descriptions, recovery, and density measurements.

Limited assays were available for acid-soluble copper (ASCu) from both Anaconda and Lion CG. Ferric sulphate copper (QLT) assays were available from Lion CG drilling. Those datasets that provided incomplete coverage were not used in the current mineral resource.

The drill hole database received from Lion CG consisted of 1,683 drill holes totalling 570,861 ft of drilling. However, not all datasets (i.e., surveys, assays, lithology, or recovery) were available for the historic holes, therefore, only a total of 840 drill hole collars totalling 336,701.1 ft (246,848.6 ft core and 89,852.5 ft reverse circulation/rotary drilling) were used in this Mineral Resource update. Although historic data include material some of which has been mined, inclusion of that data was useful in establishing statistical parameters for grade interpolation into unmined blocks.

1.7.2 MacArthur Copper Deposits

The Mineral Resource estimate for the MacArthur Copper Deposit is based on historic and recently completed drill data, which is a combination of core, RC, air track and churn drilling. Within the resource block model boundaries were 747 drill holes totalling 299,044.8 ft. A total of 55,726 intervals were assayed for total copper with only 1,019 intervals assayed for other metals. Lion CG drilling has been assayed for soluble copper (ASCu, CNCu and QLT).

1.7.3 Bear Deposit

Drilling has been reported at the Bear Deposit since 1961 in 60 drill holes totalling 133,175.1 feet. The historic drill campaigns drill holes were pre-collared using rotary drilling and downsized to NC core.

Lion CG has drilled 10 holes totalling 34,283.5 ft at the Bear Deposit since 2015. Except for drilling in 2024, the holes were pre-collared using sonic, reverse circulation or rotary drilling prior to core drilling. Samples were analyzed by Bureau Veritas (3,017 samples in 2015-2016), ALS (1,082 in 2023), and Skyline Assayers & Laboratories (993 in 2024).

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1.8 Data Verification

Data verification performed by AGP and IMC included site visits, database checks and peer reviews.

The data verification programs concluded that the data collected from the Yerington Copper Deposit and MacArthur Copper Deposits adequately support the geological interpretations and constitute a database of sufficient quality to support the use of the data in mineral resource estimation.

1.9 Metallurgical Testing

Yerington and MacArthur oxide materials are well-suited to standard heap leaching. The projected copper recoveries for these oxide materials are approximately 70% for Yerington and 75% for MacArthur, with expected net acid consumption of approximately 28.6 lb/ton and 32 lb/ton, respectively.

Primary sulfide materials at Yerington will be processed using BioHeap technologies, which comprise a suite of copper heap leaching technologies that improve recovery from primary copper sulfides.

1.9.1 Yerington Deposit

Oxide and sulfide at Yerington will be processed using separate heap leach pads. Oxide material will be processed using modern oxide heap leaching techniques, while the sulfides will be processed using BioHeap methods. Copper recoveries from Yerington sulfide materials demonstrate an increase from below 25% to 74% for the sample tests to date, with an acid consumption calculated at 32 lb/ton.

At this point in time, the metallurgical BioHeap testing on Yerington sulfide materials is ongoing.

Several synergies exist that improve the metallurgical performance of oxide materials while simultaneously reducing operating costs for both the oxide and sulfide leach methods.

The current phase of testing, optimization and variability testing is anticipated to conclude in 2025.

1.9.2 MacArthur Deposits

Upon reviewing historical and recent metallurgical test results for the MacArthur Deposit, oxide material, certain issues were identified that necessitate further test work to enhance the understanding of copper recovery and sulfuric acid consumption, along with their potential impact on the Project. In 2021, a total of 13 drill holes were executed to collect fresh samples for additional metallurgical testwork, encompassing bottle roll tests and several column tests aimed at refining heap leach recovery.

Analysis of the sieve data from the column tests suggests that finer crushing may offer potential benefits at MacArthur. However, it is essential to conduct additional metallurgical testing to validate this observation and strike a balance between capital and operating costs while maximizing potential recovery improvements.

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1.10 Mineral Resource Estimates

1.10.1 Estimation Methodology

The resource pit shells were completed with various input parameters including estimates of the expected mining, processing, and G&A costs, as well as metallurgical recoveries, pit slopes and reasonable long-term metal price assumptions. AGP worked together with Lion CG and the study team personnel to select appropriate operating cost parameters for the open pits. These are shown in Table 1-1.

The mining costs are based on cost estimates for equipment from vendors specific to the Yerington Copper Project and previous studies completed by AGP. The costs represent a base cost from the resource shell edge and an incremental cost below the shell elevation for the Yerington and MacArthur pit shells, but a fixed average cost for the other resource areas due to their geometry being less influenced by the depth of the potential shell. Process feed material is sent to separate destinations and the costs reflect that. The mining cost estimates are based on the use of 100-ton trucks using an approximate waste dump configuration to determine incremental hauls for process feed and waste.

Geotechnical sectors used for the Yerington resource were based on AGP's 2023 review of past operating reports. Pit slopes ranged from 40-45 degrees. For the MacArthur area pits a default slope of 45 degrees was applied.

Process costs and recoveries by feed type were provided by the process firm Woods. Metallurgical recoveries ranged from 70% for oxide materials and 75% for sulfide materials for the Yerington resource areas. Recoveries for the MacArthur are resources used 60% for leach cap, 71% for oxide, 65% for transition material and 40% for sulfides.

Total copper grades are used in the revenue calculations with the recoveries applied to them by geologic domain. The recovery assumptions are based on the process flow sheet the feed material will be subjected to on the heap. Copper cathode is produced from all process flowsheets.

For block valuation, the net smelter royalty (NSR) value ($/t) was determined for every block and used with the Lerchs-Grossman routine within MinePlan.

Table 1-1: Conceptual Parameters Used for Constraining Pit Shell Generation

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Commodity prices used in the resource estimation were based on metal pricing at the time the resource estimates were calculated. For the Yerington deposits (Yerington, W-3 and VLT), the spot copper price on the London Metal Exchange (LME) on February 16, 2023, was $4.03/lb. The two-year, three-year, five-year, and ten-year rolling average prices to February 16^th of the years has been $4.14, $3.73, $3.36 and $3.07/lb, respectively.

Net revenue was determined by applying the estimated copper price to the payable copper for each year. Sales prices were applied to all life of mine production without escalation or hedging. The revenue was calculated as the value of payable metals sold minus treatment and transportation charges. The copper metal price of $4.30/lb Cu for the resource shell was based on the historic three-year average price of $3.73/lb Cu escalated by 15% for the Mineral Resource.

Metal price for the MacArthur Deposits were based on older data at the time of the resource generation (January 2022). New pit shells were not developed for these deposits, so the copper price of $3.50/lb was used.

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The cutoffs for each area (Yerington, W-3, VLT and MacArthur) were determined using the costs and recoveries highlighted in Table 1-1. The marginal cutoff is considered at the rim of the pit shell. Any material that is mined is considered for processing if the contained mineralization contains a value greater than processing it or above the marginal cutoff. Material at the pit shell rim with less value than the marginal cutoff is sent to a WRSF from an economics perspective.

Those blocks within the constraining resource shell and above the cutoff applied are considered to have reasonable prospects for economic extraction.

1.10.2 Yerington Deposit

The Yerington Deposit Mineral Resource estimate involved assay analyses and the interpretation of a geologic model which describes the spatial distribution of copper within the Yerington Deposit. Interpolation parameters were defined based on geological considerations, drill hole spacing, and geostatistical analysis of the data. Classification of the Yerington Deposit Mineral Resources was done based on their proximity to sample locations and their suitability for mining production. The 2023 Yerington Copper Project Mineral Resource amenable to open pit extraction was reported at 0.038 % total copper (TCu) cut-off grade for oxide mineralization and 0.126 % TCu cut-off grade for sulfide mineralization.

The mineral resources were classified in accordance with S-K 1300 definitions. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental permitting, legal, title, taxation, sociopolitical, marketing, and other relevant issues.

The updated Mineral Resources for the Yerington Deposit are as follows: Measured Resources of 62.9 MTons at 0.30 TCu%; Indicated Resources of 94.7 MTons at 0.27 TCu%; and Inferred Resources of 113.2 MTons at 0.22 TCu% (Table 1-2). The Mineral Resource is current on December 31, 2024.

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Table 1-2: 2023 Yerington Deposit Mineral Resource Statement

Notes:

Mineral resources are reported in situ and are current on December 31, 2024. Mineral resources are not mineral reserves and do not demonstrate economic viability. AGP is the Firm responsible for this estimate.

Mineral resources are reported within a conceptual pit shell that used the following input parameters: a variable break-even economic cut-off grade of 0.038 % TCu and 0.126% TCu, for oxide and sulfide material respectively, based on assumptions of a net copper price of US$4.08 per pound (after smelting, refining, transportation, and royalty charges), 70% recovery in oxide material, 75% recovery in sulfide material, base mining costs of $2.49/st for oxide and 2.22 for sulfide, and processing plus G&A costs of $2.14/st.

All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.

1.10.3 W-3 Stockpile

W-3 is a rock disposal stockpile that lies north-northwest of the current Yerington pit. It was derived from subgrade copper oxide material mined during historical Anaconda mining operations. In 2012, Lion CG drilled fourteen Roto-Sonic drill holes.

No controls for mineralization were used as W-3 is a surface stockpile of primarily low-grade oxide mineralization and are not in situ. The W-3 volume was estimated by comparing the current topography (referenced in Chapter 11.1.6) based on 2023 LiDAR survey and interpreted original topography.

The W-3 block model TCu was interpolated using inverse distance weighting to the third power methods (ID³). The resource classification was applied based on the distance to nearest composite reported for the ID³ interpolation. The mineral resource estimates were classified in accordance with the definitions in S-K 1300.

The 2023 W-3 Stockpile Mineral Resource amenable to open pit extraction was reported at 0.04 % TCu cut-off grade. The Inferred W-3 Stockpile Mineral Resource is 14.1 million tons at 0.11 % TCu (Table 1-3).

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Table 1-3: 2023 W-3 Stockpile Mineral Resource Statement

Notes:

Mineral resources reported are surficial deposits and are not in situ. The mineral resources are current as of December 31, 2024. Mineral resources are not mineral reserves and do not demonstrate economic viability. AGP is the Firm responsible for this estimate.

Mineral resources are reported within a conceptual pit shell that used the following input parameters: a variable break-even economic cut-off grade of 0.040 % TCu, based on assumptions of a net copper price of US$4.08 per pound (after smelting, refining, transportation, and royalty charges), 70% recovery in oxide material, base mining costs of $1.80/st, and processing plus G&A costs of $2.14/st.

All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.

1.10.4 Vat Leach Tailings

Oxide tailings, or Vat Leach Tailings (VLT), are the residual leached products of Anaconda's vat leach copper extraction process. The oxide tailings dumps, located north of the previous process areas, contain the crushed rock and the red sludge at the base of the leach vats that remained following the extraction of copper in the vat leaching process.

No controls for mineralization were used as this is primarily low-grade oxide mineralization in surface stockpiles are not in situ. The volume of the VLT was estimated by comparing the current topography (referenced in Chapter 11.1.6 Topography) based on 2023 LiDAR survey and interpreted original topography.

The VLT block model TCu was interpolated using inverse distance weighting to the third power methods (ID³). The resource classification was applied based on the distance to nearest composite reported for the ID³ interpolation. The mineral resource estimates were classified in accordance with the definitions in S-K 1300.

The 2023 VLT Mineral Resource amenable to open pit extraction was reported at a 0.04 % TCu cut-off grade. The Inferred VLT Mineral Resource is 33.2 million tons at 0.09 % TCu (Table 1-4).

Table 1-4: 2023 VLT Mineral Resource Statement

Notes:

 Mineral resources reported are surficial deposits and are not in situ. The mineral resources are current as of December 31, 2024. Mineral resources are not mineral reserves and do not demonstrate economic viability. AGP is the Firm responsible for this estimate.

 Mineral resources are reported within a conceptual pit shell that used the following input parameters: a variable break-even economic cut-off grade of 0.040 % TCu, based on assumptions of a net copper price of US$4.08 per pound (after smelting, refining, transportation, and royalty charges), 70% recovery in oxide material, base mining costs of $1.72/st, and processing plus G&A costs of $2.14/st.

 All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.

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1.10.5 MacArthur Deposits

The Mineral Resources for the MacArthur Deposits are contained within a pit shell defined by the current understanding of costs and recovery of copper based on the intended recovery method of heap leaching using sulfuric acid. The MacArthur Deposit Mineral Resources were classified in accordance with S-K 1300 definitions.

The cut-off grades are 0.06% TCu for all material types in the MacArthur pit area and North Ridge, and the Leach Cap, Oxide and Mixed zones in Gallagher. This cut-off grade is at or above an internal cut-off by material type (due to variable recovery) and was selected to have a consistent cut-off for all material types. The cut-off for the Sulfide zone in Gallagher is 0.08% TCu due to the higher acid consumption and low recovery.

The Mineral Resources for the MacArthur Deposit are: Measured Resources of 116.7 MTons at 0.18 TCu%; Indicated Resources of 183.7 MTons at 0.158 TCu%; and Inferred Resources of 156.5 MTons at 0.151 TCu%. The Mineral Resource is current on December 31, 2024 (Table 1-5).

Table 1-5: MacArthur Project -- Summary of Mineral Resource

Notes:

 Mineral resources are reported in situ and are current as of December 31, 2024. Mineral resources are not mineral reserves and do not have demonstrated economic viability. IMC is the firm responsible for the estimate.

 Mineral resources are reported within a conceptual pit shell that uses the following input parameters: metal price of $3.75/lb Cu; metallurgical recoveries of 60% leach cap, 71% oxide, 65% transition and 40% sulfide; and base mining costs of $1.92/st.

 Cut-off grade: 0.06% TCu for leach cap, oxide, and transition

 Cut-off grade for sulfide: 0.06% TCu for MacArthur & North Ridge, 0.08% TCu for Gallagher

 Total resource shell tonnage = 628,831 ktons

1.11 Risks and Opportunities

Open pit mining offers the most reasonable approach for development of the deposits. This is based on the size of the resource, tenor of the grade, grade distribution and proximity to topography for the deposits.

1.11.1 Risks

The risks to the mineral resource estimate are summarized below:

• metal price and exchange rate assumptions

• changes to the assumptions used to generate the copper grade cut-off grade

• definition of Yerington Copper Project geological model to refine grade interpolation

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• changes in local interpretations of mineralization geometry and continuity of mineralized zones

• changes to interpretation of the contact between the redox surfaces

• density and domain assignments

• changes to geotechnical, mining, and metallurgical performance assumptions

• change to the input and design parameter assumptions that pertain to the conceptual pit designs constraining the mineral resources

• assumptions as to the continued ability to access the site, retain mineral and surface rights titles, maintain and acquire future environment and other regulatory permits, and maintain the social license to operate

1.11.2 Opportunities

Opportunities for the Yerington Copper Project include:

• upgrading of some or all of the Inferred mineral resource to a higher confidence category which will assist in mineral reserve estimation at the PFS or FS level

• metal prices continue their increase which will allow the addition of lower grade material

• metallurgical testwork showing more favourable recoveries with better understanding of mineralogy and technologies that may improve this including better balance of ferric in the testing

• reduced mining costs with consideration of alternate mining technologies such as continuous miners

1.12 Conclusions

Considering the assumptions presented and the work completed to date, the Yerington Copper Project illustrates a mineral resource that warrants further technical evaluation and study. Additional drilling and metallurgical testwork will be needed to upgrade the resources to reserves and increasing their confidence.

1.13 Recommendations

AGP, IMC, NewFields and Woods, the third-party firms, recommend that Lion CG advance to a Prefeasibility level of study as an integral component of the Yerington Copper Project's development roadmap. To facilitate this, the firms have presented recommendations and associated budgets, ensuring that ample information is accessible for the Project's continued advancement. The total recommended budget estimate to complete the PFS programs is $12.5 million.

1.13.1 Geology

• Conduct core drilling and associated testing beneath the Yerington pit, with the dual objective of elevating the classification of Inferred resources to Measured and Indicated and exploring the underexplored deeper extensions of mineralization below the 3,000-foot level.

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• Execute core and reverse circulation (RC) drilling alongside associated testing to enhance the classification of MacArthur's Inferred resources to Measured and Indicated, while also investigating the presence of additional deeper sulfide mineralization.

• Implement a sonic or hollow stem auger (HSA) drilling program for the VLT and W-3 stockpile, aimed at upgrading the classification of Inferred resources to Measured and Indicated. Similarly, HSA or sonic drilling should be carried out on the south waste dump and S-23 stockpile to explore the potential for additional resources.

• Using the new drilling data, update the Yerington Copper deposit redox surfaces to characterize material types.

• Collect additional density samples for the MacArthur Copper deposits.

1.13.2 Geotechnical

• Pit Drilling: to inform pit slope stability analyses at both the Yerington and MacArthur pits

• Seismic Cone Penetration Testing (SCPTu): conducted at the existing Yerington sulfide tailings to determine in-situ geotechnical properties and evaluate its suitability as the foundation for an HLF

• Geotechnical Drilling: utilizing methods such as solid stem, hollow stem auger, wireline coring, and sonic drilling; target areas encompass the existing sulfide tailings and its adjacent native ground, the potential other HLF locations at Yerington and their adjacent native ground, and potential MacArthur WRSF footprints

• Test Pits and Sample Collection: for the identification of potential borrow sources for construction materials

• IP Geophysics: applied over the Yerington sulfide tailings to refine the characterization of a chargeability high

• Pit Slope Stability Analysis: evaluating the stability of pit slopes to inform target angles for pit slope walls

• Laboratory Testing for Foundation Materials: including subsurface soils and legacy residuals, to establish parameters for geotechnical evaluations and analyses

• Laboratory Testing for Mined Materials: including waste rock and heap leach feed, to establish parameters for geotechnical evaluations and analyses

• Geotechnical Evaluations and Analyses: including slope stability, settlement/consolidation, seepage, and liquefaction analyses for major infrastructure components such as the potential HLF's and MacArthur WRSF

• Hydrodynamic Testing: including all potential feed material types, to inform the heap design

• Residual Material Testing: assessing suitability as construction material

1.13.3 Mining

• Mining Throughput Analysis: evaluating mining throughput to enhance efficiency

• Waste Rock Storage Facility Optimization: optimizing the design of waste storage facilities

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• Equipment Selection and Contract Mining Comparison: conducting a comprehensive assessment of equipment selection and comparing it with contract mining options

1.13.4 Metallurgy and Mineral Processing

• Development of a Geo-metallurgical Model: establishing a comprehensive geo-metallurgical model for both the Yerington and MacArthur deposits

• Heap Leach Optimization Testing: continuing and expanding optimization column testing, encompassing both oxide and sulfide materials in accordance with the geometallurgical model

• Synergy Evaluation: assessing potential synergies between various possible heap leach facilities for oxide and sulfides materials; this involves conducting closed circuit column tests to determine copper recovery, acid consumption and the neutralization potential of the circuits

• Heap Leach Residual and Waste Rock Characterization: comprehensive characterization work for heap leach residuals and waste rock from previous mining operations

• Size Versus Recovery Testing: executing size versus recovery testing for MacArthur materials to support a trade-off study

• "Spent Acid" Recovery Methods: evaluating potential methods for the recovery of "spent acid" for use at Yerington

• Precious Metal Recovery: investigating the feasibility of recovering precious metals from spent inoculum build-up residues

• Further design detailing of the processing flowsheet, material stacking, and agglomeration approaches in the next stage of the Project

1.13.5 Infrastructure

• HLF Design: thoroughly designing HLFs to meet PFS standards

• Site Electrical Study and Costing: conducting a comprehensive electrical study and cost analysis for the site

• Solar Power Generation and Alternative Green Power Options Study: investigating the feasibility and cost-effectiveness of solar power generation and exploring other environmentally friendly energy alternatives

• Rail Spur Detailed Design and Costing: complete a trade-off on the use of a rail spur to avoid traffic through Yerington and if appropriate to develop detailed designs and cost estimates for the rail spur

• Surveying of Yerington and MacArthur Properties: conducting detailed site surveys with an appropriate level of accuracy to produce topographical maps featuring a minimum 5-foot contour interval

• Ancillary Facilities Design and Costing: designing ancillary facilities and estimating associated costs

• Site Road Layouts: designing road layouts within the site

• Borrow Material Location Sourcing: identifying suitable sources for borrow materials

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1.13.6 Environmental

• MacArthur mine area: conduct drilling and install instrumentation for groundwater monitoring

• Evaluation of Water Treatment and Discharge Needs and Methods: assess the necessity for water treatment and explore suitable methods if required

• Continuation of Hydrogeological Assessment: carry on with the hydrogeological modeling

• Geochemical Study Analysis Continuation: continue analyzing the results of the geochemical study

• Site-Wide Water Balance Model: develop a water balance model for the Yerington and MacArthur Properties to a level of detail appropriate for a PFS

• Closure Costing: estimate the costs associated with Project closure

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2 Introduction

2.1 Registrant

Lion Copper and Gold Corp. (Lion CG), a Canadian based mine development company, and its wholly owned U.S. subsidiaries, Singatse Peak Services, LLC (SPS) and Quaterra Alaska Inc. (Quaterra), are focused on the development of their Yerington Copper Project (the Project) in Lyon County, Nevada.

Lion CG commissioned AGP Mining Consultants Inc. (AGP) to prepare an Initial Assessment (IA) level Technical Report Summary (TRS) in accordance with the Securities and Exchange Commission (SEC) S-K 1300 regulations for its Yerington Copper Project located approximately 80 miles southeast of Reno.

The Project was purchased by Lion CG in April 2011 after receiving Bona Fide Prospective Purchaser (BFPP) letters from the U.S. Environmental Protection Agency (USEPA), Nevada Division of Environmental Protection (NDEP) and Bureau of Land Management (BLM) to protect Lion CG from liability emanating from activities of the former mine owners and operations.

2.2 Terms of Reference

This TRS was prepared on behalf of Lion CG by AGP. The purpose of the Report is to present the mineral resource estimates for the Yerington Copper Project in Lyon County, Nevada. The mineral resources used in the IA were prepared on the Yerington Deposit, W-3 stockpile, Vat Leach Tailings (VLT) stockpile and MacArthur Deposit collectively called the Yerington Copper Project.

Unless otherwise indicated, the English system of measurement is used in this Report.

A portion of the information was provided by Lion CG as the registrant as set forth in Chapter 25. The third party-firms AGP, Independent Mining Consultants, Inc. (IMC), Woods Process Services, LLC. (Woods) and NewFields have relied on sources of information specified in Chapter 24 with clarification provided by Lion CG personnel as appropriate.

2.3 Qualified Persons

This report was compiled by AGP, with contributions from IMC, Woods and NewFields (Table 2-1). All four firms are using the allowance for third-party firms to act as Qualified Persons.

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Table 2-1: Yerington Copper Project Technical Report Qualified Persons and Areas of Responsibility

2.4 Site Inspection

Site visits were completed by each discipline area from the third-party firms AGP Mining Consultants Inc., Independent Mining Consultants, Inc., Woods Process Services, LLC and NewFields.

2.4.1 Geology (Yerington)

AGP personnel conducted a site visit to the Project for two days on February 13^th and 14^th 2023. The Yerington and MacArthur Properties were visited during the two-day trip.

While on site, the drill core was reviewed from three drill holes and compared with recorded drill logs, visited core sampling and storage facilities, and inspected drilling sites.

The pit areas were also visited for Yerington and MacArthur Deposits, waste dump locations and proposed infrastructure locations including the waste storage areas, conveyor route, pit access roads, proposed plant and heap leach locations and nearby railway sidings.

Meetings were held on site with the various team members including Lion CG personnel responsible for geology, and environmental activities.

2.4.2 Geology (MacArthur)

IMC conducted a site visit to the Project for two days on February 14th and 15th 2022. The Yerington and MacArthur Deposits were visited during the two-day trip.

While on site, the drill core was reviewed from three drill holes and compared with recorded drill logs, visited core sampling and storage facilities, and inspected drilling sites.

The pit areas were also visited for Yerington and MacArthur Deposits, waste dump locations and proposed infrastructure locations including the waste storage areas, conveyor route, pit access roads, proposed plant and heap leach locations and nearby railway sidings.

Meetings were held on site with the various team members including Lion CG personnel responsible for geology, and environmental activities.

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2.4.3 Metallurgy and Processing

Woods have visited the Project several times, with a two-day trip on February 13^th and 25^th 2023 intended to support this report. The Yerington and MacArthur Deposits were visited during this trip and subsequent one day trips to site since then as required.

Meetings were held on-site during the initial February visit, with review of both Yerington and MacArthur Deposits. The initial visit included a site tour and review of drill core from both pit areas, including visits to both pit areas, waste dump locations, proposed infrastructure locations including the waste storage areas, conveyor route, pit access roads, proposed plant and heap leach locations and nearby railway sidings.

2.4.4 Mining

AGP conducted a site visit to the Property for two days on February 13th and 14th 2023. The Yerington and MacArthur Deposits were visited during the two-day trip.

While on site AGP reviewed drill core from the pit areas, visited both pit areas, waste dump locations and proposed infrastructure locations including the waste storage areas, conveyor route, pit access roads, proposed plant and heap leach locations and nearby railway sidings.

Meetings were held on site with the various team members including Lion CG personnel responsible for geology, and environmental activities.

2.4.5 Infrastructure

NewFields conducted a site visit to the Project for two days on January 8^th to 10th, 2024, on September 13, 2022 (MacArthur and Yerington Deposits), and February 14, 2023 (Yerington Deposit only).

While on site NewFields visited both pit areas, legacy mining infrastructure, and proposed infrastructure locations including waste storage areas, conveyor route, pit access roads, proposed plant location, proposed heap leach facility locations, and nearby railway sidings.

2.5 Report Date

The Yerington Copper Project IA is current as of December 31, 2024.

2.6 Previous Technical Report Summaries

No prior Technical Report Summary has been prepared for Lion CG on the Project.

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3 Property Description

3.1 Locations

The Yerington Copper Project is located near the geographic center of Lyon County, Nevada, US, along the eastern flank of the Singatse Range (Figure 3-1 and Figure 3-2). The Project includes both the historical Yerington mine, and the historic MacArthur open pit located approximately 4.5 miles to the northwest. The Project is bordered on the east by the town of Yerington, Nevada which provides access via a network of paved and gravel roads that were used during previous mining operations.

The coordinate of the Project centroid is 39°1'54.72° North latitude and 119°14'34.52° West longitude.

The Project is approximately 70 miles by road from Reno Nevada, 50 miles south of Tahoe-Reno Industrial Center, and 10 miles from the nearest rail spur at Wabuska. Topographic coverage is provided by the U.S. Geological Survey "Mason Butte," Lincoln Flat," and the "Yerington" 7.5' topographic quadrangles.

Figure 3-1: Yerington Copper Project Location

Source: Tetra Tech 2014

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Figure 3-2: Regional Layout Map

Source: NewFields 2024

3.2 Property Ownership

Five fee simple parcels (private land) (Table 3-2), 82 patented mining claims (Table 3-1), and 23 unpatented mining claims were acquired on April 27, 2011, when Lion CG closed a transaction under which assets of Arimetco, Inc. (Arimetco), a Nevada corporation, were acquired. The additional 1,113 unpatented claims were staked prior to or after the acquisition by Lion CG (Table 3-3). Table 3-4 summarizes the five parcels of optioned private ground in Lyon County.

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Private land is located in Township 13 North, Range 25 East in Sections 4, 5, 8, 9, 16, 17, and 21, and patented claims are located within Township 13 North, Range 25 East in Sections 16, 17, 19, 21, 31, and 32 and in Township 13 North, Range 24 East in Sections 22-25 and 36. LION CG's claims are located in: Sections 1 and 2, Township 12 North, Range 24 East; Sections 1-3, 8, 9, 11-14, 22-27, 35, 36, Township 13 North, Range 24 East; Sections 4-9, 16-21, and 30-32, Township 13 North, Range 25 East; Sections 1-4, 9-16, 22-27, 34-36, Township 14 North, Range 24 East; Sections 19-20, 29-31 Township 14 North, Range 25 East; Sections 33-36 Township 15 North, Range 24 East, Mount Diablo Base & Meridian.

Figure 3-3  to Source: Lion CG 2024

Figure 3-18 show the claim outlines relative to topography and historic mining.

Figure 3-3: Claim Outlines, Map 1 of 16

Source: Lion CG 2024

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Figure 3-4: Claim Outlines, Map 2 of 16

Source: Lion CG 2024

Figure 3-5: Claim Outlines, Map 3 of 16

Source: Lion CG 2024

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Figure 3-6: Claim Outlines, Map 4 of 16

Source: Lion CG 2024

Figure 3-7: Claim Outlines, Map 5 of 16

Source: Lion CG 2024

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Figure 3-8: Claim Outlines, Map 6 of 16

Source: Lion CG 2024

Figure 3-9: Claim Outlines, Map 7 of 16

Source: Lion CG 2024

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Figure 3-10: Claim Outlines, Map 8 of 16

Source: Lion CG 2024

Figure 3-11: Claim Outlines, Map 9 of 16

Source: Lion CG 2024

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Figure 3-12: Claim Outlines, Map 10 of 16

Source: Lion CG 2024

Figure 3-13: Claim Outlines, Map 11 of 16

Source: Lion CG 2024

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Figure 3-14: Claim Outlines, Map 12 of 16

Source: Lion CG 2024

Figure 3-15: Claim Outlines, Map 13 of 16

Source: Lion CG 2024

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Figure 3-16: Claim Outlines, Map 14 of 16

Source: Lion CG 2024

Figure 3-17: Claim Outlines, Map 15 of 16

Source: Lion CG 2024

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Figure 3-18: Claim Outlines, Map 16 of 16

Source: Lion CG 2024

3.3 Mineral Tenure and Title

To facilitate efficient remediation, ARC submitted to the BLM a Proposed Action to acquire via Federal Land Conveyance Action (land sale) 2,062 acres of BLM land located within the Anaconda Copper Mine Site (ACMS). Upon acquisition, ARC will convey title to all minerals to Lion CG and the parties will execute a Surface Use Agreement allowing Lion CG the right to explore and mine the property. To complete the sale, BLM is preparing an Environmental Assessment (EA) following completion of a property appraisal. As of the date of this report, the draft EA has been prepared, and the appraisal is completed. Lion CG is coordinating with ARC regarding the timing and outcome of the BLM property transfer. This IA has been prepared assuming the land sale of BLM properties will be completed prior to the start of mining.

The Project consists of 5 fee simple parcels and 82 patented mining claims totalling 2,767.66 acres, and 1,113 unpatented lode and placer claims totalling 22,996 acres. The unpatented claims are located on lands administered by the BLM.

The purchase of the Arimetco assets was accomplished through a US$500,000 cash payment, 250,000 shares of Quaterra common stock, and a 2% net smelter return royalty capped at $7.5 million on production from any claims owned by its subsidiary Quaterra Alaska, Inc (including Quaterra's MacArthur Property) in the Yerington mining district.

A portion of the claims around the historic MacArthur mine were acquired by exercising a "Mining Lease with Option to Purchase". The original purchase option dated September 13, 2005, between North and Quaterra, as amended, was exercised on February 9, 2015. The Company's purchase is subject to a two percent NSR with a royalty buy down option of $1,000,000 to purchase one percent of the NSR, leaving a perpetual one percent NSR.

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A portion of the MacArthur claim group is also included in the area referred to as the "Royalty Area" in the Company's purchase agreement for the acquisition of Arimetco's Yerington properties. Under this agreement, MacArthur claims within this area (as well as the Yerington properties) are subject to a two percent NSR production royalty derived from the sales of ores, minerals and materials mined and marketed from the Property up to $7,500,000.

Ownership of the patented claims and private land is maintained through payment of county assessed taxes, while unpatented lode claims staked on BLM ground in the United States require a federal annual maintenance fee of $165 each, due by 12:00 pm (noon) on September 1 of each year. Further, each unpatented claim staked in Nevada requires an Intent to Hold fee of $12.00, plus filing fees, due by November 1 of each year payable to the County Recorder of the Lyon County. All annual fees have been paid, and Lion CG claims are current.

Unpatented lode claims have been staked by placing a location monument (two- by two-in by four-foot-high wood post) along the center line of each claim and two- by two-inch by four-foot-high wood posts at all four corners, with all posts properly identified in accordance with the rules and regulations of the BLM and the State of Nevada. Maximum dimensions of unpatented lode claims are 600 feet × 1,500 feet.

A complete property listing is included in Table 3-1, Table 3-2, Table 3-3, and Table 3-4 below.

3.4 Project Background

Copper mining was first recorded at the Yerington Mine site from 1918-1920 at the Empire Mine, and later, beginning in 1952 by Anaconda. From that time forward, the mine operated under different companies until 1999 when Arimetco, the last operator, closed the operation. Soil and groundwater contamination from the former mining operations have been identified on the Property.

As a result, a portion of the Property acquired by Lion CG in 2011 is now being remediated under jurisdiction of NDEP. Liability for the contamination on site is the responsibility of a third party which is actively engaged in remedial investigation and remediation activities under the supervision of NDEP.

To establish Lion CG's position and rights, the acquisition by Lion CG of the Arimetco properties required a series of rigorous environmental, legal, and technical due diligence studies. In 2008, Chambers Group, Inc. and Golder Associates Inc. conducted a Phase I Environmental Site Assessment (Phase I ESA) for the Yerington Mine Site. A Phase I ESA is intended to serve as an appropriate, commercially prudent, and reasonable inquiry regarding the potential for recognized environmental conditions in connection with the subject property. The 2008 Phase 1 ESA was updated by SRK Consulting (U.S.) Inc. (SRK) in 2010 and again in 2011. These were completed to allow Lion CG to establish liability protection as a bona fide prospective purchaser (BFPP). Prior to closing on the property, Lion CG received letters from the NDEP, BLM and the USEPA indicating the post-closing requirements then applicable to the Site for Lion CG to maintain its defense to liability as a BFPP regarding the activities of the former mine owners and operators.

Legal due diligence included a legal description of the property, a chain of title report, and an assignment of water rights. BFPP letters have been received from the NDEP, BLM and USEPA which indicate the basic requirements known as "reasonable steps" Lion CG must take to retain its BFPP defense from existing liabilities on the property.

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Technical due diligence included the review and compilation of a wealth of historical data in the Anaconda Collection, American Heritage Center, University of Wyoming, in Laramie. Numerous reports, maps, and historical drilling data have been scanned and entered into an internal data base, allowing an initial review of both past production and remaining mineralization in and around the Yerington pit.

The company owns approximately 6,015-acre feet of certificated primary groundwater rights permitted for mining and milling use at the site. The Yerington Property contains a Pit Lake estimated to contain approximately 43,000-acre feet of water to be dewatered during mining activities. The company believes this water will have a variety of beneficial uses but will require some costs to make the water available for those beneficial uses.

There are 3,453 ac-ft of primary water rights that have been declared forfeited by the Nevada Division of Water Resources (NDWR). The Extension of Time for 1,629 ac-ft of primary water rights is subject to a non-renewal notice by the NDWR. Lion CG is appealing the State's forfeiture notice with the outcome uncertain at the time this IA has been published. Lion CG has an option to purchase additional water rights that are attached to the Bear private lands (Table 3-4). If additional water is required for mining purposes, Lion CG may need to acquire additional water rights to meet the operational needs of the mine. Lion CG's 2011 drilling program was restricted to fee mineral properties or patented mining claims in or near the Yerington pit and approved by the State of Nevada Bureau of Mining Regulation and Reclamation of the NDEP, as an Interim Exploration Permit "BMRR Reclamation Permit #0321", supported by posting a $70,363 reclamation bond. The interim permit was approved as a final permit on November 7, 2011, by the NDEP.

If Lion CG elects to conduct exploration on unpatented lode mining claims on public lands administered by the BLM, a Notice of Intent is required if the proposed disturbance is less than five acres. The Notice of Intent includes a description and map of proposed work, supported by a reclamation bond. Proposed disturbance exceeding five acres requires a Plan of Operation, a more comprehensive evaluation of cultural features, vegetation, wildlife, water, and other items, supported by a reclamation bond.

3.5 Project Claims and Private Land

Table 3-1: Patented Claims

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Table 3-2: Private Ground

Table 3-3: Lode and Placer Claims

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