The Denare West Volcanogenic Massive Sulphide (VMS) Project is a 21,066-hectare base and precious metals property in east-central Saskatchewan, approximately 55 kilometres west-southwest of Flin Flon, Manitoba.

Located adjacent to and on trend with Eldorado Gold’s McIlvenna Bay copper-zinc-gold-silver operation, Denare West provides Purepoint shareholders with exposure to an emerging Canadian critical minerals district while exploration expenditures are funded under an option agreement originally entered into with Foran Mining Corporation.

Eldorado Gold acquired Foran Mining in April 2026 and now owns and operates McIlvenna Bay. Eldorado has identified significant exploration potential across the broader district and is currently evaluating an expansion of McIlvenna Bay’s processing capacity from 4,900 tonnes per day to approximately 7,000 tonnes per day.

Project Highlights

A Strategic Position Beside McIlvenna Bay

Purepoint identified Denare West in 2018 as a prospective VMS exploration opportunity based on its geological setting and position along the mineralized trend associated with the Hanson Lake and McIlvenna Bay deposits.

McIlvenna Bay has since advanced from development into production. Eldorado Gold completed its acquisition of Foran Mining in April 2026, and first copper concentrate from McIlvenna Bay was produced in June 2026.

Eldorado is now evaluating a potential expansion of the McIlvenna Bay processing facility from its current nameplate capacity of 4,900 tonnes per day to approximately 7,000 tonnes per day, together with the potential addition of a dedicated silver-lead circuit.

The continued development of mining infrastructure and exploration investment within the district provides an increasingly important strategic backdrop for Denare West.

Exploration Potential

The geological trend hosting the Hanson Lake and McIlvenna Bay deposits extends onto the Denare West property.

Historical exploration has identified prospective conductive horizons and VMS-style mineralization at Denare West, including the Balsam and Thunder areas.

In 2024, Foran completed a property-wide VTEM Max airborne electromagnetic survey designed to refine and prioritize exploration targets. Results announced by Purepoint in February 2025 identified numerous electromagnetic responses associated with prospective geological trends and provided an updated geophysical framework for future exploration.

The survey confirmed that conductive rocks associated with the broader Hanson Lake–McIlvenna Bay mineralized trend extend across the Denare West property.

Option Agreement

Purepoint entered into an option agreement with a wholly owned subsidiary of Foran Mining Corporation in November 2023. Following Eldorado Gold’s acquisition of Foran in April 2026, Foran became a wholly owned subsidiary of Eldorado.

First Earn-In – 51% Interest

The option holder may acquire an initial 51% beneficial interest in Denare West by incurring $3 million in qualifying exploration expenditures over a period of up to four years from the effective date of the agreement.

Second Earn-In – Additional 29% Interest

Following completion of the first earn-in, the option holder may increase its interest to 80% by funding an additional $3 million in exploration expenditures over a further two-year period.

Final Purchase Option – Remaining 20%

Following completion of the second earn-in, the option holder may acquire Purepoint’s remaining 20% interest by:

•  paying Purepoint $10 million; and

•  granting Purepoint a 2% net smelter returns royalty (NSR).

The agreement also provides the option holder with staged rights to repurchase portions of the NSR under specified terms.

If the final purchase option is not exercised following completion of the earn-in stages, Purepoint and the option holder would form a joint venture, with the option holder funding operations through completion of a pre-feasibility study.

Beyond Uranium

Purepoint’s core business remains the exploration and advancement of its uranium portfolio in Saskatchewan’s Athabasca Basin.

Denare West provides an additional source of portfolio optionality through exposure to copper, zinc, gold and silver exploration in a developing Canadian mining district, while Purepoint benefits from third-party-funded exploration under the option agreement.