BTU METALS CORP. announced the commencement of drilling on the Pakwash North target area of the Dixie Halo project located in Red Lake, Ontario. This current program is focused on untested high quality geophysical targets with potential to host base metal (copper-zinc) and gold-silver mineralization in the Eastern part of the ~230 km2 Dixie Halo property area.

The Company's Dixie Halo project shares over 35 km of common boundaries with Great Bear Resources' Dixie project. Kinross Gold Corporation has recently entered into an agreement, valued at approximately $1.8 billion, that will see it purchase Great Bear Resources Ltd. Drilling operations are being carried out by Forage Fusion Drilling Ltd. of Hawkesbury, Ontario. Drilling will cover the southeastern part of BTU's 100% owned land package (immediately proximate to the TNT area) as well as on the Pakwash North property that was acquired in 2021 via an earn in agreement.

Geological, geochemical, and geophysical studies and evaluations were completed for the TNT and Pakwash North areas last year. The studies indicate that the TNT area mineralization clearly has direct copper-zinc-silver correlation with gold potential, similar to some known high temperature base metal mineralization and the studies indicate the mineralization is associated with strong alteration including some areas with sodium depletion and strong potassium enrichment rather typical of volcanogenic massive sulphide mineralization ("VMS") systems. Work by the group has identified several targets with the potential to be base metal bearing and that warrant drill testing. Induced Polarization ("IP") geophysical survey work on Pakwash Lake identified a significant chargeability target and a coincident resistivity low feature that extends for at least 600 metres and remain open to the north.

Follow-up Pulse Electromagnetic ("PEM") survey work on the target confirmed the interpretation from the IP survey. Such features are often an indication of the presence of accumulations of sulphide minerals. Additionally, the PEM survey identified a secondary weaker target just to the west of the strong new target.

Initial plans are to drill 4 holes to test these targets.