Red Pine enters royalty agreement with Franco-Nevada

Red Pine Exploration entered into a net smelter return royalty agreement with Franco-Nevada Corporation for the purchase and sale of a 1.5% net smelter return royalty on its Wawa Gold Project located in Ontario for immediate cash proceeds to the Company of C$6,750,000. Proceeds from the sale of the Royalty will be used for continued exploration and advancement of Wawa, and ongoing working capital. Pursuant to the Royalty Agreement, Franco-Nevada has been granted a one time option, exercisable within 30 business days of Red Pine providing notice to Franco-Nevada confirming both a board-approved construction decision at Wawa, and completion of a feasibility study at Wawa, to purchase an additional 0.5% net smelter return royalty at a cost of 1.0x the net present value of the Additional Royalty, which is to be calculated based on the value of the mineral reserves within the Wawa feasibility study, after applying a 5% discount rate, and utilizing the then-prevailing analyst consensus commodity price forecasts.