Amex Exploration - Technical Analysis & Due Diligence

• Victor Cantore, the CEO, and Kelly Malcolm, the VP of Exploration, introduced Amex Exploration, emphasizing its significant gold discovery in the Shakopee/Jacobi belt, adjacent to the old Normétal mine.
• The company began their major drilling program in 2019 after financing the operation well. Their significant gold zone, referred to as the Eastern Gold Zone, has shown high-grade mineralization up to depths of 1.35 kilometers.
• Their market capitalization has surged from a few million dollars in 2016-17 to a peak of $400 million, showcasing their success and potential in the gold exploration sector.
• Despite the pandemic, the company continued its drilling operations in 2020 and 2021, adhering to government regulations and protocols. They've also embarked on regional exploration programs, aiming to define the cores of different zones and deposits.
• Moving forward, Amex Exploration is fully funded for another hundred thousand meters of drilling for 2022 and 2023, with plans to release a substantial resource estimation and an accompanying economic study.

Gold Exploration Potential at Amex Exploration's Perron Project in Quebec

Amex Exploration is advancing its 100% owned Perron gold project in northwestern Quebec, in the heart of the Abitibi greenstone belt. The project has delivered high-grade gold discoveries and has significant resource growth potential through ongoing drilling. With strong management, a tight share structure, and over $30 million in the bank, Amex Exploration merits consideration as a speculative investment.

Highlights:

• Multiple gold zones discovered with bonanza grades up to 279 g/t over 1.5m
• Resource expansion and discovery drilling ongoing with 10 rigs and fully funded 300,000m program
• Near-surface broad zones of lower-grade mineralization could support open-pit mining
• High-grade Eastern Gold Zone traced over 125m strike and 1.35km depth
• 15km of underexplored structure on Perron project remains untested
• Free milling gold amenable to low-cost gravity and leach recovery
• Advancing studies and baseline work for maiden resource and economic study
• Tight share structure with a strong institutional shareholder base

Advancing a New Gold District in Quebec

The Perron project is located near the past-producing Normétal mine and along the same structure as the high-grade LaRonde gold mine. The eastern Abitibi has lagged behind other areas like the Detour trend and Sunday/Cadillac breaks in terms of gold exploration, providing opportunity for new discoveries. Amex is the largest claim holder in the Perron area and is methodically exploring its holdings using detailed geophysics and geochemistry to guide drilling.

The property lies in the eastern Abitibi greenstone belt, a world-class gold mining district which hosts over 200 million ounces of past production. The project has excellent infrastructure with year-round road access, nearby powerlines, and proximity to skilled labor in nearby towns. The town of Normetal has a history of mining so the local community is supportive of exploration and development. This prime location bodes well for attracting investment interest and keeping operating costs low should a mine be developed.

High-Grade Eastern Gold Zone

Amex Exploration's headline discovery is the Eastern Gold Zone (EGZ), which hosts multiple high-grade shallow dipping gold zones that could be amenable to open pit and underground mining. The bonanza grades at EGZ are remarkable - selected hits include 279 g/t Au over 1.5m, 215 g/t over 2m, 163 g/t over 1m, and 25.44 g/t over 13m.

The main High-Grade Zone (HGZ) has been traced along strike for over 125m and down plunge over 1.35km, remaining open in all directions. It consists of a high-grade core grading 15 g/t over ~5m true width surrounded by a lower-grade envelope. There is excellent continuity of mineralization demonstrated by tight drill spacing, with grades and thicknesses remaining consistent over the zone. An upper subparallel zone of mineralization called E2 provides additional potential underground mining ounces and could be accessed from HGZ development.

The Denise Zone, located just 50-100m from HGZ, contains wide zones of disseminated mineralization grading 1-2 g/t which could potentially be developed as bulk open pit tonnage. Denise has recently been significantly expanded along strike through step-out drilling. Mining HGZ and Denise simultaneously would provide the optionality to blend feed and optimize throughput.

Ongoing Discoveries Through Expiration

In addition to expanding EGZ, Amex Exploration is having continued success generating new gold discoveries across its regional targets. Recent highlights include high-grade intercepts at the 210 and Upper HGZ, impressive widths at Grey Cat Zone (eg. 62.48 g/t Au over 3.90m), and new copper-gold mineralization at QF Zone where drilling is ongoing.

A property-wide geochemical survey using black spruce bark sampling and MMI soil geochemistry is identifying anomalous zones across the property which will help guide exploration. Only 15km of the defined regional structures on the property have been drill-tested, so significant potential remains for new discoveries.

Advancing Towards Maiden Resource

With its recent $35M financing, Amex Exploratioon has funding for aggressive exploration through 2023. At least 100,000m of drilling is planned for 2022-2023 with the goal of expanding and discovering new zones. Drilling is expected to support an initial mineral resource likely in 2023, along with a Preliminary Economic Assessment evaluating project options. Baseline environmental studies and engineering work have commenced to derisk the project.

The ore zones at Perron show excellent metallurgy with high gravity recoveries of over 70%. This points towards simple processing options involving gravity concentration and leaching to produce gold dore on site. Further work will investigate metallurgy across the different ore zones.

Investment Upside for a Speculative Explorer

Amex Exploration represents an attractive speculation on continued exploration success. With a tight share structure of under 83 million shares outstanding and a strong institutional shareholder base, Amex has the foundation and funding needed to rapidly increase value through the drill bit. Management is highly experienced in the Abitibi region. As results unfold, the current valuation of around $300M appears modest considering the scale of the gold system shaping up. The stock could re-rate significantly higher on resource growth and positive economic studies. With risk comes a large upside in a discovery-focused junior like Amex. Those with high-risk tolerance could consider investing at the current suppressed share price before further drill results catalyze the next leg higher.