KEY HIGHLIGHTS

Paradise Lake / Miguels/Pistol Lake

The Paradise Lake, Miguels and Pistol Lake projects are Epithermal Gold Project consists of three sub-Project areas, all totaling 944 mineral claims in 18 Map Staked Licenses covering 23,600 hectares (236 km2). The Project is ~31 km long and ~9 km wide. Of these 944 claims, 824 claims are held 100% by Aurwest with no encumbrances. The other 120 claims (the Miguels Lake sub-Project) are contiguous and are under option (100%) to Aurwest as part of the Paradise Lake Epithermal Gold Project.

Paradise Lake projects are located 14 km south of Bishops Falls and 10 km south of Grand Falls in central Newfoundland, Canada. The Trans-Canada Highway is ~14 km to the north along the Baie d’Espoir Highway. A number of logging roads and skidder-logging trails give good access to most of the Project area. Several major high-tension hydro power lines cross the property.

The Botwood Basin area of the Paradise One Project is underlain by upper Silurian sandstones and siltstones of the Botwood Group. The slightly younger Stony Lake volcanics lie along the western side of the project and these volcanics and their hidden intrusive source rocks are very likely the structural and thermal source for local fault-shear zones, gabbroic, syenitic and quartz feldspar porphyry intrusives, and auriferous epithermal low-sulfidation quartz veins/breccias/stockworks and alteration zones.

The magmatic source intrusive volcanics likely underlies both the volcanics as well as beneath and within the Botwood Basin with a close spatial relationship to the regional, deep seated structural break discussed herewith. The Project overlies and is adjacent to an important regional structural zone (the Golden Corridor) striking through SW, Central and NE Newfoundland and comprised of the Cape Ray Fault,Valentine Lake Shear Zone, Rogerson Lake Structural Zone, beneath the Botwood Basin and the Projects claims, and NE to Fogo, a total strike length of ~440 km. It is readily apparent that this regional structural zone controls the distribution of gold mineralization in the region as it is the host to Matador Resources Cape Ray gold deposits, Quadro Resources Staghorn gold zones, Marathon’s Valentine Lake gold camp, Antler Gold’s recently discovered high-grade gold zones, the Twilight gold zones, Sokoman’s very high-grade Moosehead gold deposit and very likely the Paradise Lake Project gold showings. Well over 6 million ounces of gold in reserves and resources exist on three of these properties. It is also apparent that this major structural zone and its gold deposits represent emerging frontiers for gold deposit discoveries and development in Newfoundland.

Throughout the Project, many low-sulfidation, epithermal-style alteration areas host quartz

veining, stockworks and quartz breccias exhibiting crustiform, cockscomb and chalcedonic banding with low levels of sulfide mineralization including fine grained disseminated pyrite, arsenopyrite and sulfosalts (boulangerite & bournonite); ginguro-style fine-banding has been observed at several localities with highly anomalous Au, Ag & Sb values. The silica-rich structures, reflected mostly in angular quartz-rich boulder trains, are located in elongate, linear zones with an apparent direct spatial relation to linear magnetic lows.

Prospecting and rock sampling by Tenacity during 2018 & 2019 over areas with known anomalous gold values has located new zones of angular, mineralized quartz boulders and sub-outcrop with assays up to 2.8g Au/t. Historical rock grab samples from three of the known eight prospects have assayed from 1.0, to 2.5, to 5.8 and up to 8.6 g Au/t.

During July 2019  a detailed fixed-wing, lowlevel (40 to 50 metres above ground level and on 100 m spaced lines) geophysical survey of magnetics, 3-axis gradient magnetics, spectrometry and VLF over the entire Project area and also on adjacent, open Crown Lands during; a total of 6,281 line-km covering 615 km2 were flown and processed. Preliminary results are excellent and show a huge number of striking and coincident anomalies. The magnetic-gradient shows a valuable spatial relation to anomalous gold values in boulder trains and tills in defining important gold-bearing structures along the edges of magnetic-gradient lows and adjacent to crosscutting magnetic features. This data will be critical in leading an advanced geological-prospecting program in 2020/21.

The recently completed IP survey over the area of anomalous gold concentrations within the structural corridor has identified linear positive chargeability anomalies covering 4.5 kms associated with the intrusive bodies, disseminated pyrite and low-sulfidation epithermal and structurally controlled gold mineralization up to 14.2 g/t Au. This combination of results has led to several drill targets being identified for early 2022.

The Paradise Lake Project is situated on the 450 km long, Cape-Ray-Valentine Lake ("CRVL") structural zone that is host to gold deposits including Valentine Lake, Cape Ray, Moosehead and Queensway. During orogenic events in Newfoundland, these primary and secondary structures were re-activated allowing late stage intrusives and hydrothermal fluids to emanate upward from deep seated faults in the basement rocks to form "leakage halos" within the overlying rocks including the Botwood Group sediments and Stony Lake volcanics. Various styles of quartz veining with associated sulfides (pyrite + arsenopyrite) and gold mineralization formed along these discrete structures. At Paradise Lake an intrusion of granodiorite likely belonging to the Mt. Peyton Intrusive suite is considered an important source for gold-bearing hydrothermal activity.

Additional rock sampling at Paradise Lake has returned 14.22 g/t gold, the highest yet recovered on the property. A total of 39 rock samples greater than 100 ppb gold form an eight-kilometer trend surrounding Paradise Lake. These anomalous gold bearing boulders appear locally derived surrounding Paradise Lake. Quartz veining in brecciated sandstone and syenite coincide at the contact of two linear intrusions that emanate from beneath Paradise Lake. These are positive indications of "leakage halos" proximal to the CRVL structural zone.