Chemesis International Inc. announced that it has entered into a property option agreement with Geomap Exploration Inc. (the “Vendor”) dated April 18, 2022, pursuant to which the Company has been granted the right to acquire a 100% interest in and to the Rose Property, which consists of a series of mineral claims located in Kamloops Mining Division, British Columbia (the “Property”). The Company and the Vendor are at arms-length. Pursuant to the terms of the Option Agreement, the Company has been granted the right to acquire a 100% interest in and to the Property, in consideration for a series of cash payments and common share issuances to the Vendor and the incurrence of exploration expenditures over a period of two years.

The common shares issued pursuant to the Option Agreement will be subject to voluntary resale restrictions, such that the common shares shall be released as follows: (i) one-fourth (1/4) of the common shares shall be released from voluntary restriction on the date that is three (3) months after the date of issuance; (ii) one-fourth (1/4) of the common shares shall be released from voluntary restriction on the date that is six (6) months after the date of issuance; (iii) one-fourth (1/4) of the common shares shall be released from voluntary restriction on the date that is nine (9) months after the date of issuance; and (iv) the remaining one-fourth of the common shares shall be released from voluntary restriction on the date that is 12 months after the date of issuance. Following the acquisition of the Property, the Company will grant the Vendor a net smelter returns royalty totaling 3% on commercial production from the Property.