York Harbour Metals Inc. (TSXV:YORK) announced its proposed plans to spin-out to its shareholders all of its right, title and interest in and to its two mineral properties located in the Battle Mountain district of Nevada, USA, which are adjacent to Nevada Gold Mines LLC's. projects. The Spin-Out would allow York Harbour to continue on as a single entity solely focused on its York Harbour Project in the Canadian Province of Newfoundland and Labrador, while the ownership and development of the Nevada Assets would remain separately with Phoenix Gold Resources (Holdings) Ltd. ('Phoenix Gold'), a British Columbia corporation. It is anticipated that the Spin-Out will be completed by way of a statutory plan of arrangement (the 'Arrangement') under the Business Corporations Act (British Columbia) and will be subject to regulatory approval, including approval of the Supreme Court of British Columbia (the 'Court') and the TSX Venture Exchange (the 'Exchange'), as well as shareholder approval of at least two-thirds of the votes cast at a special meeting (the 'Meeting') of York Harbour shareholders expected to be held approximately in late 2022.

Full details of the Spin-Out will be included in the management information circular sent to York Harbour shareholders in connection with the Meeting. It is anticipated that York Harbour shareholders will be entitled to receive 0.15 common shares of Phoenix Gold for every one common share of York Harbour held as of the record date (the 'Record Date') for distribution of shares under the Arrangement. No York Harbour options or warrants will entitle the holders to receive any shares or convertible securities of Phoenix Gold, except to the extent that such holders exercise such options or warrants, as the case may be, to acquire common shares of York Harbour prior to the Record Date.

There would be no change in the shareholders' holdings in York Harbour as a result of the Arrangement. Upon receipt of approval of the Spin-Out from the shareholders of York Harbour and the Court, York Harbour's board will trigger a date for Phoenix Gold to complete an equity financing and apply for listing on the Canadian Securities Exchange or another stock exchange in Canada.