VANCOUVER: Temas Resources Corp. has executed a definitive agreement with CloudBreak Discovery Corp. and Cronin Services Ltd. to acquire a 100% interest in the La Blache property in Cote-Nord, Quebec by way of certain share and cash consideration.

The La Blache Property is part of the La Blache Anorthosite Complex and hosts the Farrell-Taylor magnetite-ilmenite deposit. The deposit starts at surface extending to 600m below surface, with an 1150m strike extent, oriented roughly ENE and has an average thickness of 50m and a minimum thickness of 15m. In 2012 SGS Canada published a resource estimate of 101,700,000t @ 59.7% Fe2O3 (41.76% Fe), 18% TiO2 and 0.33 V2O5 (0.18% V) at a cut-off of 5.1% TiO2Eq.

Kyler Hardy, CEO of Temas, stated “The La Blache Property brings the company a step closer to consolidating a land package that holds a number of identified mineralized lenses. The Temas team continues to build momentum and this acquisition represents the next step in the execution of our plan to build an advanced base and specialty metals portfolio.”

Pursuant to the transaction, Temas will acquire a 100% interest in the La Blache Property by issuing an aggregate of 20 million Temas shares and paying $60,000 to the vendors and deliver an NSR Royalty of 2%, subject to the right of Temas to repurchase one-half of the NSR Royalty (being 1%) for $2.5 million at any time.

The Payment Shares will be subject to pooling restrictions as follows: 25% will be released from pool on the date that is six months after the closing of the Transaction, and 75% of the Payment Shares will be released from pool on the date that is 12 months after such date.

The Transaction is subject to standard closing conditions, including receipt of Canadian Securities Exchange approval and Temas shareholder approval as described below.

The Transaction constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Transaction is exempt from the formal valuation requirements of MI 61-101 as Temas is not listed on a specified stock exchange. Temas intends to obtain minority shareholder approval of the Transaction in accordance with the requirements of MI 61-101.

Further details with respect to the Transaction will be included in the information circular to be mailed to Temas shareholders in connection with the annual and special meeting expected to be held in midAugust, 2020 with closing of the Transaction anticipated to occur in late-August 2020 upon satisfaction of all conditions.

Temas Resources Corp. is a mineral exploration company focused on the acquisition, exploration and
development of Iron, Titanium and Vanadium properties in Canada.