Metals Creek and Benton Options Bay of Islands Hydrogen Property to Brutus Mining Inc.

The option terms provide cash and Brutus shares to the optionors, with a royalty granted only upon exercise.

Rhea-AI Summary

Metals Creek Resources (MCREF) and Benton Resources signed an agreement granting Brutus Mining an option to acquire the Bay of Islands Project. The Western Newfoundland hydrogen exploration property covers 83.5 square kilometres across three licences. To acquire a 100% interest, Brutus must pay the optionors an aggregate $100,000 and issue 1,200,000 Brutus common shares at a deemed price of $0.76 per share, in instalments through the agreement’s second anniversary.

Upon exercise, the optionors receive a 3% Gross Metals Returns royalty; 1.5% is redeemable for $1,000,000. The agreement requires Canadian Securities Exchange acceptance, and most consideration shares carry contractual resale restrictions. Planned evaluation includes public geoscience data and structural interpretation, leading to a proposed soil-gas survey and seismic mapping during the 2027 field season.

4 points · 0 major

PositiveiHow this balance works

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0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.$100,000 in aggregate cash payments is payable to the optionors under the option terms. 1.2% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.1,200,000 Brutus common shares at a deemed $0.76 per share form additional option consideration.
• Minor point. Forward-looking: it has not happened yet and may not happen.3% Gross Metals Returns royalty is granted upon exercise; 1.5% is redeemable for $1,000,000.
• Minor point. Forward-looking: it has not happened yet and may not happen.2027 field season plans include a proposed soil-gas survey and seismic mapping following initial evaluation.

Negative

• Minor pointCanadian Securities Exchange acceptance remains a condition of the agreement.
• Minor pointContractual resale restrictions limit sales of most first- and second-tranche shares for 36 months, and third-tranche shares for 12 months.

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Thunder Bay, Ontario--(Newsfile Corp. - November 5, 2026) - Metals Creek Resources Corp. (TSXV: MEK) (OTC Pink: MCREF) (FSE: M1C1) (the "Companies" or "Metals Creek") and Benton Resources Inc. (the "Companies" or "Benton") (TSXV: BEX) announces that the companies have signed an option agreement dated November 5, 2026 (the "Agreement") with Brutus Mining Inc. ("Brutus") under which Brutus has been granted the option to acquire a 100% interest in the Bay of Islands Project (the "Project") in Western Newfoundland (Please see Figure 1). The Project is comprised of three (3) licenses totalling 334 claim units with an area of 83.5 square kilometres and is considered favourable for potentially hosting natural hydrogen.

Figure 1. Bay of Islands Hydrogen Project - Regional Geology Map in Western Newfoundland

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/943/322681_a732ce7a84133b11_002full.jpg

Atlantic Canada is emerging as a highly prospective area for hydrogen exploration, with Western Newfoundland having experienced a recent increase in project generation, such as First Atlantic Nickel's Ophiolite-X project and Luma Hydrogen's Lewis Hills Hydrogen Claims, both proximal to and in geologically similar environments to Brutus' Bay of Islands Project.

A 2024 study evaluating natural hydrogen potential across Quebec noted that the "potential for natural hydrogen in southern Quebec is not necessarily limited to these areas. Key areas of interest include: 1) ophiolite complexes, which are correlative with the Bay of Islands complex in Newfoundland where Szponar et al. (2013) sampled strongly alkaline and highly reducing water sources containing dissolved hydrogen."

Similarly, a 1985 article from Tectonophysics suggests that the Bay of Islands Complex (which hosts First Atlantic Nickel's Ophiolite-X project) and the Coastal Complex (which hosts Brutus' Bay of Islands project) ophiolites formed within a main ocean basin (i.e., the early Paleozoic Iapetus Ocean) along a seafloor spreading center and ridge-ridge transform fault, respectively.

Planned Work

The Project will be further evaluated utilizing a compilation of public geoscience data and structural interpretation leading to a proposed soil-gas survey and seismic mapping during the 2027 field season.

Terms of the Agreement

Pursuant to the Agreement entered into on November 5, 2026 (the "Effective Date"), the Company has an option (the "Option") to acquire a 100% undivided interest in the Project, by paying the Optionors an aggregate of $100,000 in cash ($20,000 within 10 business days of the Effective Date and $30,000 and $50,000 on or before the first and second anniversaries of the Effective Date) and issuing to the Optionors 1,200,000 common shares in the capital of the Company (the "Shares") at a deemed price per Share of $0.76 (200,000 Shares within 30 business days of the Effective Date and 400,000 and 600,000 Shares on or before the first and second anniversaries of the Effective Date). The Company may accelerate any cash payment or Share issuance at its election.

Upon exercise of the Option, the Optionors will be granted a 3% Gross Metals Returns ("GMR") on the Project with 1.5% of the GMR being redeemable for a $1,000,000 payment to the Optionors. In the instance that the Option is not fully exercised, the Project must have work expenditures able to keep the three (3) licenses in good standing for at least six (6) months if and so returned.

In addition to any hold period required under applicable securities laws and the policies of the Canadian Securities Exchange ("CSE"), the Shares issued pursuant to the Agreement will be subject to contractual resale restrictions. The first and second tranche Shares will be subject to contractual resale restrictions expiring thirty-six (36) months from issuance, with the exception of 100,000 Shares under the first tranche and 100,000 Shares under the second tranche. The third tranche Shares will be subject to contractual resale restrictions expiring twelve (12) months from issuance. The Agreement is subject to acceptance by the CSE.

References

1 - Large-Scale Screening for Natural Hydrogen: A Quebec's Perspective

2 - Geochemical and geological evidence bearing on the origin of the Bay of Islands and Coastal Complex ophiolites of western Newfoundland

Both these projects are located in Western Newfoundland and cover large portions of prospective large sedimentary basins (Parson's Pond Basin and Deer Lake Basin) which have been under explored for both H and He. Both basins are interpreted to be highly prospective environments to host both H and He with the presence of porous sandstones and conglomerates with associated mudstones and shales capping these formations. More importantly, the presence of chrome, serpentine with associated groundwater provide the mechanism to produce hydrogen including regional fault structures providing a pathway for H or He to migrate to the structural trap.

About Metals Creek Resources Corp.

Metals Creek Resources Corp. is a junior exploration company incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the Exchange under the symbol "MEK". Metals Creek has earned a 50% interest in the Ogden Gold Property including the former Naybob Gold Mine, located 6 km south of Timmins, Ontario and has an 8 km strike length of the prolific Porcupine-Destor Fault (P-DF).

Additional information concerning the Company is contained in documents filed by the Company with securities regulators, available under its profile at www.sedarplus.ca.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Alexander (Sandy) Stares, President and CEO
709-424-1141
Metals Creek Resources Corp
MetalsCreek.com
Twitter.com/MetalsCreekRes
Facebook.com/MetalsCreek

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/322681

FAQ

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What must Brutus pay to acquire the Bay of Islands Project from Metals Creek and Benton?

Brutus must pay the optionors $100,000 and issue 1,200,000 common shares at a deemed price of $0.76 per share to acquire a 100% interest. Cash instalments are $20,000 within 10 business days of November 5, 2026, then $30,000 and $50,000 by the first and second anniversaries. Share instalments are 200,000 within 30 business days, then 400,000 and 600,000 by those anniversaries.

What royalty will Metals Creek and Benton receive if Brutus exercises the Bay of Islands option?

Upon exercise, the optionors will receive a 3% Gross Metals Returns royalty on the project. A 1.5% portion is redeemable for a $1,000,000 payment to the optionors.

What happens if Brutus does not fully exercise the Bay of Islands option?

If the option is not fully exercised and the project is returned, work expenditures must keep its three licences in good standing for at least six months.