Barksdale Resources Corp. announced significant permitting progress related to the proposed Sunnyside copper-lead-zinc-silver exploration program in Arizona. The United States Forest Service ("USFS") has informed the Company that it intends to publish a draft Decision Memorandum ("DN") and Finding of No Significant Impacts ("FONSI") for Barksdale's proposed seven-year exploration drilling program at its Sunnyside project in Arizona on January 25, 2023.

This is a major milestone for Barksdale and allows the USFS to initiate the final step of the National Environmental Policy Act ("NEPA") permitting process which will culminate with the approval of Barksdale's Plan of Operations ("PoO"). Barksdale submitted its initial PoO to drill at Sunnyside in April 2018. The PoO was deemed as substantively complete by the USFS in February 2019 and a 45-day public scoping period was completed in September 2019.

Additionally, public comment periods for both the USFS process and Army Corp. of Engineers ("USACE") process were completed in April 2021. A vast array of work as part of the USFS's environmental assessment process has been completed by the Company, including multiple years' sensitive species (fauna) monitoring, sensitive species mapping (flora), cultural resource review, noise attenuation studies, 100-year flood plain mapping, wetland resources mapping, and traffic monitoring.

In total, four separate approvals are needed to begin drilling at Sunnyside: 1) Sign o of the Company's PoO by the USFS a er receipt of the DN and FONSI, 2) a Section 404 Individual Permit from the USACE, 3) an approved Storm Water Pollution Protection Plan ("SWPPP") from the Arizona department of Environmental Quality ("ADEQ"), and 4) a CWA Section 401 Water Quality Certification ("401 Certification") from ADEQ. Barksdale has already received the SWPPP and 401 Certification from the state of Arizona as well as the Section 404 Individual Permit from the USACE. The USFS will initiate a formal 45-day Objection Period on January 25, 2023.

If any objections are received, the USFS and its third-party independent consulting firm will have up to 45-days to respond and clear objections with the potential for a single 30-day extension, if necessary. Following these two statutory review periods, the USFS will finalize the DM and FONSI and approve the Company's PoO. The Company will initiate its drilling program as soon as the PoO is signed, and the requisite environmental surety bond is in place.

Barksdale's team has worked closely with the USFS, the USACE, the US Fish and Wildlife Service, and the ADEQ to avoid project impacts and designed the Sunnyside drilling program to allow for maximum flexibility with the smallest possible footprint and disturbance levels. The total allowable disturbance is 11 acres, over half of which includes the rehabilitation of 20 kilometers of existing roads (~6 acres), demonstrating the extremely small footprint of this program. Once approved, Barksdale will be able to utilize up to two drill rigs (reverse circulation and/or diamond) over the course of a seven-year drilling period.

Barksdale will complete concurrent reclamation as the drilling program progresses and will also complete five years of additional monitoring once drilling has been completed to assure the best possible outcomes on reclamation of the disturbed sites. Barksdale's PoO will utilize floating versus fixed drill pad locations, which provide additional flexibility in determining optimal drilling locations based on results of the exploration program. Drill pads can be sited on or adjacent to existing or newly constructed drilling roads and laydown yards throughout the permitted area.

Three drilling areas have been outlined and will allow Barksdale to test drilling targets over a 12 square kilometer portion of the Sunnyside property. Each drill area is accessed via distinct assess roads that are already in place. Additional roads may be built in certain areas to provide secondary access to the property and/or additional drill sites.

Seasonal drilling restrictions will occur within a quarter mile (400 meter) radius of a nesting site of the Mexican Spotted Owl located within the permit area. The seasonal shutdown will only affect a small portion of the project area and will have very minor affects to the ultimate drilling program.