• Exploits Discovery Corp has completed a transformational deal with New Found Gold, selling claims for 2.8 million shares valued at over $11.8million (up from $7 million at announcement) plus a 1% royalty on properties along the Appleton fault, representing what CEO Jeff Swinoga describes as excellent monetization of grassroots exploration assets.
• The company has strategically repositioned itself by acquiring three properties in Quebec and one district-scale property in Ontario, collectively containing approximately 700,000 ounces of gold in historic resources, shifting from early-stage exploration to more advanced projects with established gold in the ground.
• Exploits Discovery's financial position has strengthened significantly, with approximately $13.6 million in treasury following the New Found Gold transaction, trading at roughly $11 million market capitalisation, prompting analyst Brian Lundin to note the company is "basically trading at cash value" with investors getting "the gold for free."
• The company plans to commence drilling at the Fenton property in Quebec in January 2026, following extensive geophysical work and ground sampling designed to improve targeting beyond previous operators' efforts, focusing on multiple high-grade gold targets along magnetic corridors intersecting diabase dykes.
• Major shareholder Eric Sprott holds approximately 14% of the company, providing strategic backing as Exploits Discovery positions itself to benefit from rising gold prices through its portfolio of resource-stage assets in premier Canadian mining jurisdictions including Val-d'Or and the Puskapa deformation zone.

Exploits Discovery Corp has emerged from a significant corporate transformation, completing a deal with New Found Gold that has substantially enhanced its treasury whilst simultaneously repositioning the company's asset portfolio towards more advanced, resource-stage gold projects across Quebec and Ontario. The transaction, which CEO Jeff Swinoga characterises as a "win-win for both companies," provides the financial foundation for an aggressive exploration strategy targeting nearly 700,000 ounces of historic gold resources across multiple properties.

The New Found Gold transaction, originally announced in September with a reference price of $2.48 per share, has delivered 2.8 million shares now valued at over $11.8 million as New Found Gold's share price has appreciated to above $4.00. Combined with existing treasury of $2.6 million, Exploits Discovery now commands approximately $13.6 million in working capital against a market capitalisation of roughly $11 million. This financial positioning prompted mining analyst Brian Lundin to highlight the company at the New Orleans conference, stating that Exploits Discovery is "basically trading at cash value" and investors "get the gold for free."

The strategic shift represents a fundamental repositioning from grassroots exploration towards resource-stage development, with the company acquiring properties that contain established gold deposits rather than pursuing purely conceptual targets. This transformation addresses a key investment thesis: providing shareholders with direct exposure to rising gold prices through proven ounces in the ground rather than speculative exploration upside alone.

The New Found Gold Transaction: Monetising Grassroots Exploration

The completed transaction with New Found Gold demonstrates Exploits Discovery's ability to extract substantial value from early-stage exploration efforts. The company sold claims positioned along the Appleton fault, directly north of New Found Gold's flagship Keats discovery in the Queensway area of Newfoundland. Whilst these properties delivered high-grade intercepts, they lacked the continuity required for resource delineation. Swinoga contextualised the strategic rationale behind the transaction.

"We took properties that had high-grade hits north of Newfound, which was great. We didn't get a lot of continuity as we wanted, but we basically traded them, monetised them, if you will, and traded them for properties that have almost 700,000 ounce of gold in historic resources,"

The deal structure includes not only the 2.8 million share consideration but also a 1% net smelter return royalty on properties including Bullseye, positioned adjacent to New Found Gold's Jackpot and K2 zones, as well as Gazebo South. The royalty provides ongoing exposure to New Found Gold's exploration success in this highly prospective corridor. The shares carry a four-month hold period, with Exploits Discovery able to determine its approach to these holdings in April 2026.

The transaction required shareholder approval, which was secured with 99% support at an Annual General Meeting approximately one month prior to closing. The extended timeline between announcement and completion reflected the complexity of transferring numerous mineral claims and ensuring proper documentation, though Swinoga noted that "Newfound's been great to work with" throughout the process.

Strategic Asset Acquisitions: Quebec and Ontario Properties

Whilst completing the New Found Gold divestiture, Exploits Discovery simultaneously executed option agreements to acquire four properties across Quebec and Ontario, fundamentally altering the company's risk profile and exploration thesis. These acquisitions were completed between May and June 2025, providing the company with several months to conduct technical evaluation ahead of drilling programmes.

The Quebec portfolio comprises three properties in established mining districts. The Fenton property hosts a historic non-compliant resource of 63,000 ounces at approximately 5 grams per tonne, based on exploration conducted prior to the implementation of NI 43-101 standards in 1994. However, subsequent drilling totalling approximately 20,000 metres has identified high-grade intercepts not captured in the historic resource estimate, including one intersection of 356 grams per tonne gold over a portion of 42 grams per tonne over 5 metres.

The Wilson property is strategically positioned between Val-d'Or and Chibougamau, in the vicinity of IAMGold's recent acquisition of Northern Superior Resources. This positioning places the property within a corridor that has produced over 100 million ounces historically from the Val-d'Or camp, whilst the Chibougamau area is experiencing renewed exploration activity. Swinoga characterised the broader region as "relatively unexplored" compared to Val-d'Or, suggesting meaningful discovery potential.

The Ontario asset, Hawkins, represents a district-scale opportunity along the 60-kilometre Puskapa deformation zone. Only 1.5 kilometres of this structure has been systematically explored, yet this limited footprint hosts a historic resource of approximately 300,000 ounces. The company has engaged Natalie, the former Vice President of Exploration for the previous operator, to lead evaluation of this extensive landholding.

"Each of the properties has a resource, sometimes non-compliant, but there's a resource there," Swinoga noted, emphasising the reduced exploration risk compared to grassroots targets.

Interview with Jeff Swinoga, CEO of Exploits Discovery Corp

Technical Approach: Understanding Mineral Systems Before Drilling

Exploits Discovery has adopted a methodical technical approach that prioritises understanding mineral systems before committing capital to drilling programmes. This strategy contrasts with operators who might immediately pursue resource expansion drilling upon acquiring properties with established deposits.

Since closing the Quebec acquisitions in June, the company has conducted extensive ground sampling and commissioned geophysical surveys on the Fenton and Wilson properties. This work aims to develop predictive models that identify multiple targets along prospective corridors, rather than simply drilling proximal to known mineralisation.

"A lot of companies would start drilling right away. They've got a known resource, compliance sometimes historic, but they would try and make the resource bigger right away without really understanding the mineral system around it"

At Fenton specifically, the technical team has identified that the historic resource and high-grade intercepts occur where magnetic corridors intersect a diabase dyke. This structural and geophysical relationship provides a targeting framework that was unavailable to previous operators in 1994. The company believes this predictive model can identify multiple "gold chimneys" along strike, representing discrete high-grade shoots within the broader mineralised system. Swinoga describied their enhanced targeting capability.

"Right where the resource, you think it would be, it's predictive. So we want to get into that predictive modelling. By looking at these corridors where the diabase dyke is and where the sulfides are, you say, 'Okay, that makes sense.' But they didn't have that back in 1994,"

This systematic approach aims to deliver "value for money" by ensuring drill metres test well-conceived targets based on comprehensive geological understanding rather than testing conceptual extensions of known mineralisation.

2026 Drilling Plans and Near-Term Catalysts

With technical preparation advancing and treasury secured, Exploits Discovery is positioned to commence drilling at Fenton in January 2026. This programme will represent the company's first drilling as a resource-stage explorer and will test the predictive targeting models developed through recent geophysical and geochemical work.

The company intends to release results from ground sampling and geophysical surveys ahead of the drilling programme, providing investors with insight into target rationale. This disclosure strategy aims to demonstrate improved targeting compared to previous operators whilst building market anticipation for drill results.

"We're going to be rolling out what we've been doing. We're talking about a drill program in January for Fenton. So, lots of stuff to come," Swinoga indicated, suggesting a steady flow of news as the company transitions from transaction completion to operational execution.

For the Wilson property in Quebec, similar preparatory work is underway, though specific drilling timelines have not been disclosed. The Ontario Hawkins property will receive extensive technical evaluation given its district-scale dimensions, with drilling likely to follow Quebec programmes as the company sequences capital deployment across its portfolio.

Market Positioning and Shareholder Value Proposition

The strategic transformation positions Exploits Discovery to capture value from rising gold prices through established resources whilst maintaining exploration upside across district-scale land positions. The company's market capitalisation of approximately $11 million against a treasury enhanced by the New Found Gold transaction creates what management views as a compelling value proposition.

"We're at this inflection point where we've been over the last couple weeks been quietly working to kind of close this deal, but now that the deal's done, we can now start talking really about the new properties," Swinoga stated, characterising the current moment as the beginning of a new phase for the company.

The presence of Eric Sprott as a 14% shareholder provides strategic validation and suggests confidence in the company's repositioned strategy. Sprott's involvement in precious metals explorers and developers is widely followed within the mining investment community, and his substantial ownership stake may attract additional investor attention as the company advances its properties.

The combination of established resources, near-term drilling catalysts, enhanced treasury, and backing from prominent resource investors creates multiple potential value drivers for 2026. The company's transition from grassroots exploration to resource-stage development addresses a key risk factor whilst maintaining the exploration upside that characterises earlier-stage opportunities.

Jurisdictional Advantages and Infrastructure Considerations

The Quebec and Ontario properties benefit from established mining infrastructure, skilled labour availability, and generally supportive regulatory frameworks for mineral development. The Val-d'Or region in particular offers proximity to mills, skilled trades, and exploration services that can reduce operating costs and facilitate efficient programme execution.

"Quebec, there's high grade. We're planning to drill around Quebec," Swinoga noted, whilst emphasising the quality of the jurisdiction alongside the geological prospectivity.

The Ontario property's position along the Puskapa deformation zone places it within a recognised metallogenic belt, though the relative lack of systematic modern exploration along much of the structure suggests earlier-stage evaluation will be required compared to the Quebec assets.

The Investment Thesis for Exploits Discovery Corp

• Enhanced Treasury and Financial Flexibility: With approximately $13.6 million in working capital against an $11.8 million market capitalisation, the company offers substantial financial backing for 2026 exploration programmes without near-term financing requirements, providing runway to deliver results before accessing capital markets
• Resource-Stage Assets Reduce Exploration Risk: The strategic shift towards properties containing approximately 700,000 ounces of historic gold resources fundamentally de-risks the portfolio compared to grassroots exploration, providing established targets whilst maintaining district-scale exploration upside
• Immediate Drilling Catalysts Drive News Flow: The planned January 2026 drilling programme at Fenton, combined with pending geophysical results and ground sampling data, creates near-term catalysts that can drive market re-rating as the company transitions from transaction completion to operational execution
• Strategic Shareholder Backing Provides Validation: Eric Sprott's 14% ownership stake and the company's ability to execute value-accretive transactions with New Found Gold demonstrate credibility within the resource investment community and suggest confidence in the repositioned strategy
• Leverage to Rising Gold Prices Through Proven Ounces: With established resources across multiple properties, shareholders gain direct exposure to gold price appreciation through proven ounces in the ground rather than purely speculative exploration upside, addressing a key investment consideration for resource investors
• District-Scale Exploration Upside: The Ontario Hawkins property's 60-kilometre strike length, with only 1.5 kilometres systematically explored, combined with Quebec properties positioned in established mining camps, provides substantial blue-sky discovery potential beyond near-term resource expansion
• Improved Targeting Through Modern Exploration Techniques: The application of contemporary geophysical methods and predictive modelling to properties last systematically explored in the 1990s offers potential for discoveries missed by previous operators using less sophisticated targeting approaches
• Jurisdiction Quality Reduces Development Risk: Properties located in established Quebec and Ontario mining districts benefit from infrastructure, skilled labour, supportive regulatory frameworks, and proximity to processing facilities, creating clearer paths to potential development scenarios

Key Takeaways

Exploits Discovery Corp has executed a fundamental transformation from grassroots explorer to resource-stage gold company, monetising early-stage claims with New Found Gold for over $11 million in shares and royalties whilst simultaneously acquiring properties containing approximately 700,000 ounces of historic gold resources across Quebec and Ontario. The enhanced treasury position, combined with backing from Eric Sprott and immediate drilling catalysts commencing January 2026, positions the company at an inflection point where investors gain exposure to established resources whilst maintaining district-scale exploration upside. The strategic repositioning addresses key investment considerations by providing direct leverage to rising gold prices through proven ounces whilst the company's current market capitalisation trading near cash value creates what management and analysts characterise as a compelling entry point. With systematic technical work designed to improve targeting beyond previous operators' efforts, the company is positioned to deliver a steady flow of results throughout 2026 across a diversified portfolio of assets in premier Canadian mining jurisdictions.

TL;DR

Exploits Discovery Corp (CSE:NFLD) has completed a strategic transformation, selling grassroots exploration claims to New Found Gold for 2.8 million shares now worth $11+ million plus a 1% royalty, whilst acquiring Quebec and Ontario properties containing ~700,000 ounces of historic gold resources. With $13.6 million treasury against an $11 million market cap, analyst Brian Lundin says the company is "trading at cash value" with investors getting "the gold for free." Eric Sprott owns 14%. January 2026 drilling at Fenton targets high-grade gold using modern geophysical targeting unavailable to 1990s operators. The company has shifted from grassroots exploration to resource-stage development, providing shareholders direct leverage to rising gold prices through proven ounces in premier Canadian jurisdictions.