Silk Road (Record Gold) Announces Grenfell Option Acquisition Update

Calgary, Alberta–(Newsfile Corp. – February 23, 2023) – Silk Road Energy Inc. (TSXV: SLK), doing business under the name Record Gold, reports that it is presently initiating an independent geological report on the Grenfell gold property which is subject to an option agreement held by a private company with which it is transacting.

Record Gold Corp is commencing a NI 43-101-compliant geological report on Grenfell, a gold property located near Kirkland Lake, Ontario, in order to meet TSX Venture Exchange policy conditions in regards to non-arms length asset sales. The report is expected to be ready for regulatory submission in two weeks.

As previously disclosed (Silk Road News Release, September 7, 2022), the non-arms-length transaction with Pelangio Exploration Inc pursuant to a conveyance agreement executed on August 23, 2022, is with Record Gold Corp (“Record Gold”), an Ontario-based private exploration company. The transaction is a “related party transaction” as defined under MI 61-101 as Michael C. Judson is CEO, director and shareholder of Silk Road and President, director and shareholder of Record Gold. David Johnson is Corporate Secretary, director and shareholder of Silk Road and Corporate Secretary and shareholder of Record Gold. Dr. Paul Craig is a director and shareholder of Silk Road and a shareholder of Record Gold.

Record Gold Corp has agreed to exchange its option agreement with Pelangio Exploration Inc. (PX.V) in return 40 million shares of Silk Road at a price of $0.05 per share. Following the transaction Silk Road will have 70,871,684 issued and outstanding shares.

The Grenfell transaction requires the approval of the company’s disinterested shareholders. This vote would follow the submission of the NI 43-101-compliant geological report to the TSX Venture Exchange and shareholders.

Silk Road did receive approval for a corporate name change by the majority vote of disinterested shareholders (non-conflicted, non-insiders) following the special mailing to shareholders concluded on December 21, 2022. Following approval from the TSX Venture Exchange, the company’s new name will be Record Resources Inc.

The Grenfell gold property is comprised of 38 mining cells and eight leased claims covering an area of approximately 6.7 square kilometres and is located 10 kilometers northwest of Agnico Eagle’s Macassa Mine in Kirkland Lake Ontario. Grenfell is also located five kilometres west of Record’s Kenogami East property (see August 10, 2022 news release)

Following the conveyance of the option agreement to Record, the option agreement with Pelangio will have the following terms:

Record Gold has the right to earn an undivided 80% interest in Grenfell by completing a total of $2,000,000 in work costs or exploration expenditures to be incurred within five years and by making one-time cash payment to Pelangio.

The work costs shall be completed in accordance with the following schedule: $250,000 must spent on the property twenty-four (24) months from the date of the signing of the Agreement; $500,000 on or before the third anniversary; $750,000 on or before the fourth anniversary; and, $500,000 on or before the fifth anniversary. In addition to the work costs associated with the earn-in agreement, Record Gold shall pay to Pelangio a one-time $60,000 payment in twenty-four (24) months.

In other news, the company reports closing the first tranche of its private placement of shares. The company has issued 795,580 common shares at a price of $0.05 per share and half of a common share warrant exercisable at $0.10 per share for two years. The first tranche of this private placement raised $39,779 in proceeds before broker compensation. The company paid a commission of $700 and issued broker warrants amounting to 14,000 in connection with the financing.

The company reports that, following this financing, it will have 70,871,684 shares outstanding (this includes 40 million following the Grenfell transaction). This financing and the Grenfell transaction are both subject to TSX Venture Exchange, regulatory and board approvals.

As previously disclosed (Silk Road News Release, September 7, 2022), below is selected assay data from historic drilling on Grenfell:

Table part 1

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Table part 2

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Qualified Person:
Edward Procyshyn, P.Geo, a qualified person in accordance with National Instrument 43-101, has reviewed and approved the technical information contained in this news release.

For more information please contact:
Michael C. Judson, Chairman & CEO,
Record Gold Corp.
T. +1-514-865-5496

Website: www.recordgoldcorp.com

Cautionary Statements

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes”, an or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would” , “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: approval of the Private Placement and obtaining a full revocation order. This forward-looking information reflects the Company’s current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to: the market acceptance of the Private Placement; the ability of the Company to obtain a full revocation order and the receipt of all required approvals in connection with the foregoing. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market price for securities; and the delay or failure to receive board, shareholder, court or regulatory approvals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

The Units and the securities comprising the Units have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in the Unites States, or any other jurisdiction, in which such offer, solicitation or sale would be unlawful.

Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/155838

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