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Western Exploration Inc.

Gravel Creek: Positive Metallurgical Results and Recoveries

• Results from Au, Ag recoveries from concentrate after ultra-fine regrinding = 75.4%, 76.5%
• USFS approval (46 drill platforms), water lease = drill ready program
• Trading at 0.08x P/NAV, US$46 EV/oz M&I, US$20 EV/oz M&I, Inf.

After Updated Modelling, Interpretations, Goal of Doubling Resource

• We are maintaining our C$2.45/sh target and Outperform rating for Western Exploration Inc. (TSXV:WEX, “Western”) after the company announced the following at its Gravel Creek deposit (100%, NV): i) positive metallurgical results and recoveries from cyanide leaching of gravity and flotation concentrates; and ii) resource expansion potential from 3D modelling and geophysics.
• Gravel Creek Metallurgical Highlights: The metallurgical results demonstrated that Gravel Creek may not be entirely refractory. Based on the recent results, the majority of Au and Ag in concentrate has been shown to be recovered through cyanide leaching along with fine grinding (73%, 74%). This is significant as it could reduce the capital and operating costs required to process and/or the dependence upon another producer with processing capacity to treat Gravel Creek ore, improving project economics. In other words, it may not require complex refractory processing methods. Additional test work is ongoing on the cyanide leach tails in Table 2 to better understand the deportment of precious metals to better improve overall recoveries by cyanide or alternative methods
• Exploration at Gravel Creek: As per additional 3D modelling, structural work and geophysical interpretation, the current Gravel Creek deposit and Jarbidge discovery coincide with a strong chargeability anomaly that indicate strong resource expansion potential. Recently (July 2026), Western signed a new water lease with Nevada Gold Mines LLC that in combination with USFS approval for drilling (up to 46 drill platforms), means the resource expansion program is drill-ready. The new interpretations indicate potential to double the current Gravel Creek resource through a focused follow-up drilling program. The company believes mineralization remains open to the northeast, the northwest and up-dip. The current resource stands at 1.3M t at 6.95 g/t Au eq Ind. and 3.9M t at 5.39 g/t Inf. for a total resource of ~1.0M oz high grade Au eq.
• Doby George Progress: The main focus continues to be advancing Doby George towards production (100%, NV, as part of the Aura project along with Gravel Creek). The company has submitted a Mine Plan of Operations ("MPO") to the USFS is a required step in advancing the Doby George Project through federal permitting, with the USFS serving as lead agency. It also describes a 7,500 t/day, open-pit, heap-leach mine as per the company’s 2025 PEA. The company continues to advance baseline and hydrogeological test work to advance a planned PFS. We estimate a 6.5-year initial mine life, ~US$110M in capital, 7,300 t/day at ~0.9 g/t Au mining operation for ~55,000 oz/yr Au resulting in a C$308M NPV (or 78% of our NAV/sh estimate).

Valuation

• Our NAV/sh and target price remain C$7.09 and C$2.45/sh, respectively. Western is currently trading at 0.08x P/NAV and $20/oz Au eq. Ind., Inf. versus a blended target multiple of 0.35x P/NAV. At a US$4,000/oz Au price, our 2025E NAV/sh increases to C$10.14. The target multiple reflects: i) 1.5M oz Au eq. total resource with open-pit, near-term gold production among three deposits; ii) robust, high-grade exploration potential at the Gravel Creek deposit potentially translating into a multi-million oz, long-life deposit; iii) ample amounts of regional infrastructure already in place with private land available for additional mine infrastructure; iv) an attractive mining jurisdiction (NV); v) notable key shareholders including Agnico Eagle Mines Ltd. (10%).

Paul O’Brien

Senior Mining Analyst

T +1 (416) 323 2150
E paul.obrien