Hm Exploration Expands Pilley's Island Vms District with Acquisition of Lewis Copper Tenure

HM Exploration Corp. entered into a property option agreement dated March 11, 2026 to acquire the option to earn a 100% interest in the Lewis Copper VMS Tenure located in Newfoundland, Canada. The acquisition of the Lewis Tenure expands HM?s Pilley?s Island land package to 42 km² located just 55 km southeast of Firefly Metals?

Green Bay VMS project. The Tenure consists of six (6) mineral licenses encompassing a total land area of 20 km2 making the total area of the land package approximately 42 km2. Collectively, the Tenure along with the Pilley?s Island Project will now be referred to as the ?Lewis Pilley?s Project?.

The Tenure is road accessible and situated approximately 25 km east of the town of Springdale, approximately 210 km from the town of Gander, approximately 55 km southeast of Firefly Metals? Green Bay Project and approximately 150 km from the Pine Cove Mill and Port by way of major roads. The Tenure has a long history of mining and exploration dating back to the late 1800?s when the Pilley?s Island Pyrite Company Ltd. produced approximately 450,000 tons of massive pyritic ore from the Pilley?s Island Mine-Old Mines (after Kerr, 1996).

The Lewis Pilley?s Project hosts a cluster of Volcanogenic Massive Sulfide (?VMS?) systems and prospects with demonstrated high-grade Zn-Pb-Cu-Ag+/-Au intersections. The geological setting is directly analogous to the Buchans camp (Thurlow, 1996), and the presence of sulfide-clast breccias is a strong vector toward proximal massive sulfide lenses. Deep drilling has confirmed a large hydrothermal system with significant sulfide development.

Most of the historic showings that fall within the extents of the new Tenure have not seen systematic exploration recently or historically. Many of the historic drill holes were shallow and drilled in a vertical orientation limiting the geological knowledge of the extents of the underlying lithology and mineralization. Work is being planned to validate historic assay results as well as collect new data from the 3B-Zone, Clifford Jones (Bull Road) Extension, Bouzanne Shaft, Henderson, Mansfield and Pilley?s Cove Showings.

On March 11, 2026, the Company entered into the Agreement to acquire the option from Unity Resources Inc. and Stephen Stockley Agriculture and Fabrication Inc. (collectively, the ?Optionors?) to earn a hundred percent (100%) interest in the Tenure through a combination of common share issuances and incurrence of exploration expenditures on the Tenure, as follows: (1) Issuing to the Optionors, on a 50-50 basis, an aggregate of 2,700,000 common shares in the capital of the Company at a deemed price of $0.27 per Share as follows: a. 300,000 Shares on or before the date that is ten (10) business days after the Effective Date; b. 450,000 common shares on or before March 9, 2027; c. 450,000 common shares on or before March 9, 2028; d. 450,000 common shares on or before March 9, 2029; e. 450,000 common shares on or before March 9, 2030; and f. 600,000 common shares on or before March 9, 2031; and (2) incurring a minimum of $1,500,000 in exploration expenditures on the Tenure as follows: a. $900,000 of exploration expenditures on or before March 9, 2028; and b. $1,400,000 of exploration expenditures on or before March 9, 2030. Pursuant to the Agreement, the First Tranche Shares, Second Tranche Shares, Third Tranche Shares, Fourth Tranche Shares and Fifth Tranche Shares will be collectively subject to a two (2) year resale restriction from the applicable date of issuance. During the Option period, each of the Optionors will also be subject to restrictions on disposition applicable to any Shares they hold, consisting of giving prior notice to the Company of any proposed disposition of more than 50,000 Shares during any thirty (30) day period and the price, approximating current market, at which the applicable Optionor is willing to sell them and either: (i) disposing of such Shares to specific willing investors identified by the Company within a 10-day period at 98% of the Proposed Sale Price if the purchase is via a private off-market sale or 100% of the Proposed Sale Price if the purchase is arranged through a stock exchange; or (ii) in the instance that the Company fails to identity a willing investor, disposing of such Shares at a price of not less than 65% of the Proposed Sale Price.

Pursuant to the Agreement, should the Company complete a financing at a per-Share price lower than that of its immediately preceding financing round during the Option period, the Escrow and Resale Rules shall be of no further force or effect and any resale restrictions imposed under the Escrow shall be removed by the Company. The Optionors will retain a three (3%) percent net smelter returns royalty on the Tenure, subject to the Company?s buyback right of one point five percent (1.5%) of the NSR for CAD 2,000,000. All securities issued in connection with the Agreement will be subject to a statutory hold period of four months and one day.

No finders' fees were paid on this arm's length Agreement. In connection with the Agreement, the Company also concurrently entered into a Bonus Agreement with the Optionors. Pursuant to the Bonus Agreement, in the event that the Company enters into an agreement in respect of an arm?s length transaction on the Tenure during the Option period under the Agreement, the Optionors will be entitled to receive, on a 50-50 basis, additional consideration in aggregate equal to five percent (5%) of the total cash and non-cash consideration payable to the Company under the Subsequent Sale, paid within thirty days of the Company?s receipt of the applicable portion of the Consideration Entitlement under the Agreement.

In the event that at least sixty-five percent (65%) of the Subsequent Sale Consideration is returned to shareholders of the Company as a dividend, return of capital or other pro rata distribution, the Company will be relieved of its obligations and will not be obligated to pay the Consideration Entitlement. Pursuant to the Bonus Agreement, the Company shall also pay the Optionors an aggregate bonus payment(s) of CAD 5,000,000 in cash in the event, subsequent to the exercise of the Option by the Company, a cumulative mineral reserve and mineral resource of not less than 2,000,000 AuEq ounces is established, updated or expanded on the Tenure, in compliance with NI 43-101, in any one or more mineral resource or mineral reserve category supported by a Feasibility Study and with a Net Present Value of not less than CAD 1,000,000,000. The Mineral Resource Bonus Payment will be payable by the Company to the Optionors, on a 50-50 basis, within thirty (30) business days of the date of filing of the Technical Report in support of such Feasibility Study or other public disclosure under applicable securities laws of the results of such Feasibility Study, whichever is earlier.