Technical Report & Exploration Plan

National Instrument 43-101 Technical Report

The National Instrument 43-101 Technical Report on the Moray Gold Property is dated February 25, 2022 with an effective date of December 31, 2021 (the “Report”).  The Report has not been updated to include exploration work completed during 2022 or for changes to any other relevant property information, since December 31, 2021.

ACTUAL 2022 - PHASE 1 EXPLORATION PROGRAM (COMPLETED)

PHASE 2 EXPLORATION PROGRAM AND BUDGET

New Break is in the process of finalizing the details of a Phase 2 exploration program and budget which will consist of an anticipated 8-10 hole, 2,000-2,500 metre drilling program, expected to cost $500,000 to $600,000. The program is expected to test the following targets:

• Test the interpreted lamprophyre dyke west of trench 12, perpendicular to the main gold bearing shear vein/structure;
• Test trench 12, west of the main shear/vein structure and highest grade grab sample (70.6 g/t Au);
• Test the high grade gold channel, hosted in a massive sulphide zone south of trench 12;
• Test the NNE parallel structures at trench 12;
• Test the Fiset syenite and the gold bearing Nor vein; and
• Test into a VLF conductor high and mag low, NW from trench 1.

Targets and Recommendations

Three principal targets have been recommended for future exploration work:

1.  Fiset Syenite Target  2) Moray Unconformity Target  3) Paired Ultramafic Intrusive Target

Fiset Syenite Target

The Fiset Syenite intrusion is a prime exploration target recommended for further exploration.  The figure below shows the interpreted outline of the Fiset intrusion with cross-hatched lines bounded by northeast and north trending structures outlined by the red ellipsoids.  Mechanical stripping and diamond drilling are recommended to further explore zones of magnetic depletion that are conductive to the northeast of the Fiset Showing.  Typical drill hole depths up to 150 m are budgeted for this phase.

Moray Unconformity Target

The Moray Unconformity is an interpreted 10.5 km long structure outlined by 3 blue ellipsoids in the figure below, and a prime exploration target recommended for further exploration.  Of particular significance is the intersection of two NE trending splay faults and two N to NW trending cross-structures with the Moray Unconformity.  Noranda drill hole NOR-8, drilled in 1965, intersected 5 m of massive pyrite cross-cut by quartz-carbonate veining returning 69.38 g/t Ag.  Diamond drilling is recommended to further explore zones of magnetic depletion that are conductive along the key splay fault intersections transecting the Moray Unconformity.  Typical drill hole depths up to 150 m are budgeted for this phase.  1^st derivative plots are imperative in accurately determining structural breaks.

Paired Ultramafic Intrusive Target

Two high magnetic, paired ultramafic intrusives separated by faulting, outlined by the 2 yellow ellipsoids in the figure below, have been interpreted over 10.5 km and are prime exploration targets recommended for further exploration.  Considerable exploration work has already been carried out on the Moss-Tremblay Nickel Showing and the RTZ R & R Showing.  The extensive, paired magnetic trend southeast of Moray Lake, is interpreted to be an isoclinally folded synclinal structure and has received little exploration.  Exploration drilling work conducted by Noranda intersected 11 m of massive sulfides consisting of 75% pyrite, 10% pyrrhotite in intermediate to felsic pyroclastics along a 500 m long conductive trend.  Typical drill hole depths varying from 150-300 m are budgeted for this phase to allow for testing of deep conductance anomalies including known conductors in the vicinity of the Moss-Tremblay and RTZ Showings.  Borehole EM geophysics is recommended on deep drill holes exceeding 300 m depths.

Target Ellipsoids Covering High-Priority Geology, Geophysical and Structural Trends