High-Grade Gold at Surface May Signal Large Potential Scale

• Puma Exploration is focused on exploring high-grade gold at Lynx in Northern New Brunswick.
• In 2021, Puma made a significant discovery, intersecting about five grams over 50 meters right from the surface. In 2022, they conducted their largest drilling program, drilling 10,000 meters with 100 holes, targeting shallow regions close to the surface.
• After extensive drilling, they developed 3D models of the high-grade gold zones. The upcoming 2023 program aims to extend the Lynx gold zone from the surface to about 200 meters and explore additional surface lenses spanning more than 3 kilometers.
• There is variability in gold grades across the strike length, and the structural information gathered from the drilling has revealed more about the gold veins' directions. The exploration process includes trenching, backhoe excavations, and mapping, with plans to drill at least 6,000 meters in the upcoming summer.
• Puma has secured permits and is fully funded for the 2022 program. They are optimistic about their exploration, emphasizing the value of their surface discoveries and the potential upside of their findings.

Poised for High-Grade Gold Discovery at Lynx Project, New Brunswick

Puma Exploration is an exploration company targeting high-grade gold deposits at its Lynx project in northern New Brunswick, Canada. The company has discovered extremely high-grade gold mineralization at the surface, including grab samples up to 288 g/t gold. The high grades found at the surface, in trenches and in shallow drilling points to the potential for Puma to delineate a large-scale high-grade gold deposit.

Initial shallow drilling by the company in 2021 intersected 5 g/t gold over 50 meters starting at the surface. Follow-up drilling in 2022 comprised 100 holes and 10,000 meters, successfully extending high-grade mineralized zones along strike and to depth. Highlights included 9.16 g/t gold over 9.6 meters and 5.55 g/t gold over 50.6 meters.

According to CEO Marcel Robillard, the company is now focused on proving up the scale of these high-grade shoots, both along strike and at depth. The mineralization extends over a broad area, with high-grade shoots defined so far over 700 meters of strike length. Surface work and geophysics suggest the total strike length could exceed 3 kilometers. The mineralized zone also appears open at depth, with most drilling limited to within 200 meters from the surface so far.

Optimally Located Project with Minimal Overburden

The Lynx project covers over 60,000 acres and is located just 2 kilometers from Route 180 in New Brunswick, providing excellent access and infrastructure. Importantly, high-grade mineralization occurs at the surface with minimal overburden. Robillard estimates that only 3 to 5 feet of gravel overlies the mineralized rock in most areas. This allows the company's geologists to directly sample and map the gold-bearing structures on the surface.

According to Robillard, being able to visually examine the gold-bearing quartz veins and structural controls in outcrop gives Puma a critical advantage in targeting its drilling. This has allowed the company to achieve high success rates from its drilling and avoid excessive drilling waste. Direct observation of the high-grade veins extending for tens of meters at the surface also provides confidence that the structures have significant scale potential.

Structural Model Points to Stacked Mineralized Zones

Puma has worked with expert structural consultants to analyze the structural controls on high-grade mineralization. The key features are the contact between rhyolite and sedimentary host rocks, combined with folding and foliation which created open spaces for gold-bearing quartz veins to form. The model suggests multiple episodes of mineralization forming stacked high-grade shoots.

Robillard states that Puma is now focused on systematically drilling these high-grade shoots both along strike and to depth. The company will also continue surface stripping and trenching work to further expand the footprint of the mineralized system. Several additional parallel mineralized trends have been identified at the surface, opening up further drill targets.

Fully Funded 2022 Exploration Program Now Underway

With the recent closing of a C$3 million financing, Puma is fully funded for an aggressive 2022 exploration program. Field crews have been onsite since May, preparing new drill targets through extensive surface work. A drill rig is mobilized and will start turning on July 5th.

The Phase 1 drilling program consists of 3,000 meters focused on expanding the current 700 meter long high-grade zone to depth and along strike. Concurrently, surface work will continue evaluating additional drill targets across the large property area. Assay results from the Phase 1 drilling are expected by August/September. Puma also plans to extract a 4,000 tonne bulk sample in the fall and undertake advanced metallurgical testing to further derisk the deposit. Additional drilling is likely later in 2022 based on Phase 1 results.

Near-Term Catalysts Could Attract Investor Interest

With the gold exploration sector investor sentiment still depressed, drill results from new discovery-stage projects like Puma's Lynx project could reignite interest in the coming months. The company expects a steady news flow from now through the summer, including surface sample results, metallurgical tests, trenches identifying new veins and eventually Phase 1 drill results. Positive drill results demonstrating the scale potential of the high-grade mineralized system could attract significant investor interest.

The project's location in a premier mining jurisdiction, high grades, excellent access and lack of overburden make the Lynx project a standout among earlier-stage gold exploration plays. The current depressed share price leaves significant upside potential as the company systematically advances the project toward an initial resource estimate. For investors with appropriate risk tolerance, Puma Exploration warrants consideration as a speculative buy ahead of pending drill results.

The Investment Thesis for Puma Exploration's Lynx Project for Risk-Tolerant Gold Investors

• The exceptionally high gold grades found at the surface and in initial drilling suggest Lynx has the potential to host a very high-grade and economically robust gold deposit. High-grade deposits tend to attract significant acquisition interest from major miners.
• The project's excellent location, minimal overburden and year-round access provide a clear path to fast-tracking the deposit into production if exploration continues to intersect expansive high-grade mineralization.
• Puma's systematic exploration approach, leverage of expert consultants and direct observation of visible gold at the surface increase the odds of exploration success versus a purely conceptual blind target.
• At current depressed share prices, Puma offers substantial upside potential if ongoing drilling intersects wide zones of high-grade mineralization and expands the scale of the system. Early investors could see exponential returns on investment if the project progresses toward development.

However, it is critical for investors to exercise caution and restraint when considering investments in junior explorers like Puma Exploration due to the high risks involved:

• The Lynx project is still at a very early stage. While initial results are encouraging, there is no certainty that ongoing drilling will delineate an economically viable orebody. Most exploration projects fail to become mines.
• Gold exploration is inherently risky. Drill targets may fail to intersect significant mineralization or could intersect zones that are too narrow or sporadic to support mining. Geology rarely matches interpretations perfectly.
• Puma will need to raise considerable additional capital to advance Lynx to a preliminary economic assessment and feasibility study. Equity financings typically dilute early shareholders.
• Obtaining permits and social license for a new mine in Canada involves major hurdles and uncertainties. Development is never guaranteed even for significant discoveries.
• Puma shares could continue to languish if the company intersects disappointing drill results or if gold prices decline. Upside potential comes with significant downside risks.

While Puma Exploration presents a compelling speculative opportunity, investors need to limit position sizes, maintain diversified portfolios, and be ready to withstand potential sharp share price declines. The potential rewards of the next major gold discovery must be balanced with the substantial risks inherent to junior mining exploration.