Newcrest Red Chris Mining Limited entered into an Asset Purchase Agreement to acquire McBride, Railway, Boomerang and Todagin Properties from Hawkeye Gold & Diamond Inc. (TSXV:HAWK) for CAD 1.4 million on March 18, 2022. The consideration payable consists of: (i) CAD 1,299,686.61, being CAD 1,400,000 less an extension fee of CAD 100,313.39 paid by the Newcrest to Ministry of Energy, Mines and Low Carbon Innovation on behalf of Hawkeye on December 28, 2021; (ii) the grant by Newcrest to the Hawkeye of the royalty; and (iii) the assumption by the Newcrest of the assumed liabilities. The cash consideration shall be payable as follows: (i) CAD 46,369.11 paid within five business days of the date of the Asset Purchase Agreement; and (ii) Newcrest shall pay at the closing time an amount equal to CAD 1,299.686.61 minus the following amounts: (a) the amount of the settlement fee; and (b) 50% of the aggregate amount of maintenance payments paid by Newcrest on or prior to the closing date which are attributable to the Interim Period. Hawkeye will also retain a 2% Net Smelter Royalty (NSR) on each of the properties. Newcrest may purchase the first 1% of the NSR on each of the properties for cash consideration of CAD 1,500,000. Thereafter, Newcrest may purchase a further three-quarters of the remaining NSR on each of the properties by paying Hawkeye an additional CAD 1,000,000 in cash. Thereafter, Hawkeye will retain a 0.25% NSR interest in each property. Newcrest's entitlement to purchase these portions of the NSR will terminate sixty days from the commencement of construction of a mine on each property. The NSR is also subject to a right of first refusal in favor of Newcrest.

The sale of the properties is subject to TSX Venture Exchange approval, Hawkeye shareholders' approval, and execution of royalty agreement. As of April 22, 2022, Hawkeye received conditional approval from the TSX Venture Exchange. The final approval of the transaction is conditional, among other things, upon receipt of shareholder approval of the transaction by simple majority of shareholder votes. As of May 31, 2022, Hawkeye received shareholder approval at its special meeting for the sale. Upon the company receiving Exchange acceptance for the agreement, the closing date of the transaction is expected to occur within 3 business days after all closing conditions in the agreement are satisfied.

McCarthy Tétrault LLP acted as legal advisor to Newcrest Red Chris Mining Limited while Harper Grey LLP acted as legal advisor to Hawkeye Gold & Diamond Inc.