Forge Resources Announces the Commencement of Drilling at Alotta, Yukon

Rhea-AI Summary

Forge Resources Corp. (FRGGF) has commenced drilling operations at its Alotta project in Yukon, with promising early results from the first drill hole ALT-25-007. Initial observations revealed strong mineralization within the top 25 meters, including significant veining and favorable alteration patterns. The company has also successfully closed an oversubscribed flow-through financing, raising $1,280,500.32 through the issuance of 1,940,152 units at $0.66 per unit. The 2025 drilling program plans to complete up to 4,000 meters across 12 diamond drill holes, focusing on the Payoff Zone and untested geophysical anomalies. The Payoff Zone previously yielded notable results, with hole ALT-23-001 intercepting 211.65 metres of 0.46 g/t gold in 2023. Additionally, the company issued 400,000 options to consultants, exercisable at $0.56 per share until June 5, 2027.

Positive

• Strong mineralization observed in first drill hole within top 25 meters
• Successfully raised $1.28M through oversubscribed flow-through financing
• Previous drilling results showed promising gold intercepts (211.65m of 0.46 g/t Au)
• Comprehensive 4,000-meter drilling program planned across 12 holes

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - June 5, 2025) - Forge Resources Corp. (CSE: FRG) (OTCQB: FRGGF) (FSE: 5YZ) ("FRG" or the "Company") is pleased to announce the commencement of drilling at Alotta project, Yukon and the oversubscribed closing of its previously announced flow through financing, and options.

The drill crews commenced drilling on the evening of June 2. The first hole (ALT-25-007, Azimuth 310, Dip: -50) has an anticipated depth of 300 metres (Figure 1). Early observations are promising, revealing strong mineralization within the top 25 metres of the hole, with significant veining and favorable alteration. Patchy biotite alteration, moderate local silicification, disseminated pyrite, and deeper occurrences of sericite have been observed. The majority of veining hosts pyrite, minor chalcopyrite and chalcopyrite-molybdenite veins.

Drilling has now intersected a 50-metre-wide zone of intense silicification, sericite, pyrite, and localized chlorite alteration. This area represents a textbook phyllic alteration zone, characterized by abundant disseminated pyrite, narrow quartz breccias, and pyrite stringers.

Lorne Warner P.Geo, President of Forge Resources states: "We are thrilled to announce that our first drill hole at the Alotta project has revealed significant veining and highly favorable alteration within the top 25 metres. This includes a well-developed phyllic alteration zone, which aligns perfectly with our geological model. These exciting results mark a promising start, and we eagerly anticipate further discoveries as drilling continues."

Pad building is underway to facilitate step-out drilling in the Payoff Zone for planned holes, ALT-25-008/009). The Payoff Zone is host to hole ALT-23-001 that intercepted 211.65 metres of 0.46 grams/tonne gold from the 2023 maiden drill program.

We remain committed to keeping our stakeholders informed and will provide further updates as new information becomes available.

Figure 1 - Drilling operations at ALT-25-007

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8680/254679_405d1b22547b1941_001full.jpg

Drill Plan Recap for Spring/Summer 2025

As announced on April 16, 2025, the Forge technical team, in collaboration with Archer Cathro and Associates, has designed a summer exploration program comprising of up to 4000 metres of diamond drilling across 12 proposed diamond drill holes, each with an average depth of 300-350 metres. These efforts will be directed towards step-out drilling within the Payoff Zone and untested coincident geophysical and geochemical anomalies across a 4 km by 1 km area. The Company's drill plan for the 2025 season intends to evaluate the most promising drill locations based on their respective merits to test for porphyry-style mineralization.

Additionally, the company plans to undertake further reconnaissance drilling on the Payoff target areas this season. This zone exhibits substantial surface mineralization, with highly anomalous concentrations of gold, copper, and molybdenum identified from rock and soil samples. These targets represent areas of the property where significant (>1 g/t gold) rock values have been observed on the surface.

Financing Closing

Forge Resources has closed its previously announced non-brokered flow through financing, oversubscribed non-brokered flow-through private placement (the "Private Placement") and will issue 1,940,152 units (the "Units") at a price of $0.66 per Unit for aggregate gross proceeds of $1,280,500.32 (the "Offering"). This amount surpassed the company's previously announced target of $1,000,000.

Each Unit consists of one flow-through common share in the capital of the Company and one-half of one transferrable non-flow-through common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one common share of the Company (a "Warrant Share") for a period of 2 years following the issuance thereof at an exercise price of $1.00 per Warrant Share (the "Warrant Expiry Date"). The Warrants are subject to an acceleration clause, in the event that the trading price of the Shares on the Canadian Securities Exchange (the "CSE") reaches $1.50 or more for a period of fifteen consecutive trading days, the Company may, at its option, accelerate the Warrant Expiry Date by delivering notice to the holders of such Warrants thereof by issuing a press release (the "Warrant Acceleration Press Release"), and, in such case the Warrant Expiry Date shall be deemed to be 5:00 p.m. (Vancouver Time) on the 30th day following the date of the issuance of the Warrant Acceleration Press Release.Upon closing of the Offering, the Company paid finders fees to one finder consisting of a cash commission of $60,000 and 90,909 warrants exercisable for a period of 2 years from the closing of the Private Placement at a price per share of $0.66.

The gross proceeds from the Units will still be utilized for incurring Canadian exploration expenses and flow-through mining expenditures. All securities issued are subject to a statutory holder period of four months and one day from the date of issuance.

Issuance of Options

The Company also announces the issuance of 400,000 options to certain consultants of the Company (the "Options"). Each option allows the holder to purchase one common share of the Company (each a "Share") upon the terms and conditions of the option agreement. The Options are exercisable over a 2-year term expiring on June 5, 2027 at a price per Share of $0.56

Qualified Person

Lorne Warner, P.Geo, and President of Forge Resources Corp. is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the scientific and technical disclosure in this news release.

About Forge Resources Corp.

Forge Resources Corp. is a Canadian-listed junior exploration company focused on exploring and advancing the Alotta project, a prospective porphyry copper-gold-molybdenum project located 50 km south-east of the Casino porphyry deposit in the unglaciated portion of the Dawson Range porphyry/epithermal belt in the Yukon Territory of Canada.

In addition, the Company holds an 80% interest in Aion Mining Corp., a company that is developing the fully permitted La Estrella coal project in Santander, Colombia. The project contains eight known seams of metallurgical and thermal coal.

On behalf of the Board of Directors
"PJ Murphy", CEO Forge Resources Corp.
info@forgeresources.com

Forward Looking Statements
Certain of the statements made and information contained herein may contain forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, information concerning the Company's intentions with respect to the development of its mineral properties. Forward-looking information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory bodies). Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of the Company, its financial or operating results or its securities. The reader is cautioned not to place undue reliance on forward-looking information. We seek safe harbor.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254679

FAQ

What are the initial drilling results from Forge Resources (FRGGF) at the Alotta project?

The first drill hole (ALT-25-007) revealed strong mineralization within the top 25 meters, showing significant veining, patchy biotite alteration, silicification, and a 50-meter-wide zone of intense phyllic alteration with pyrite and chalcopyrite.

How much did Forge Resources (FRGGF) raise in their recent flow-through financing?

Forge Resources raised $1,280,500.32 through an oversubscribed flow-through financing, issuing 1,940,152 units at $0.66 per unit.

What are Forge Resources' (FRGGF) drilling plans for 2025 at Alotta?

The company plans to complete up to 4,000 meters of diamond drilling across 12 holes, focusing on step-out drilling in the Payoff Zone and testing geophysical anomalies across a 4km by 1km area.

What were the previous drilling results at Forge Resources' (FRGGF) Payoff Zone?

In the 2023 maiden drill program, hole ALT-23-001 intercepted 211.65 metres of 0.46 grams/tonne gold in the Payoff Zone.

What options did Forge Resources (FRGGF) issue to consultants?

The company issued 400,000 options to consultants, exercisable at $0.56 per share with a two-year term expiring on June 5, 2027.