XTM – TSXV

Gowganda Gold Project

XTM – TSXV June 2018

Au Ni Cu Pt

Results and Recommendations

2

Project Overview

! Gold discovery made by Transition Metals in 2010.

! Located 75 km southeast of the Kirkland Lake gold camp (35 Moz Au production), 1 km west of the Gowganda silver camp (70 Moz past production)

! Associated with the Ridout Fault, major crustal break transecting the Swayze belt, Shining Tree, and IAMGOLD’s Cote Gold project

! Trenching at 11 widely spaced intervals exposed a large zone of alteration and mineralization in a syenite dyke swarm

! Values at surface up to 19.5 g/t Au in grabs, with channels averaging up to 3.5 g/t Au over a 20 x 60m bedrock exposure

! Gold related to syn-tectonic emplacement of syenite intrusions

! Property optioned Aldershot Minerals –recently returned to Transition Metals

??

Cadillac - Larder Break

Ridout Fault

Round LakeBatholith

Proterozoic sedimentary cover(conceals underlying

volcanics)

Archean volcanics

& sediments

Young-Davidson 3.8 Moz

Kirkland Lake35 Moz

Haultain

N

25 km

SyeniteIntrusions

3

Work Completed to Date• Detailed mapping and structural work

completed at 11 stripped mineralized exposures

• 14.75 line km ground magnetic survey

• 13.35 line km pole-dipole induced polarization survey

• Identified new target areas at depth NW of Trench 3 Au mineralization

• MMI and Soil Gas sampling completed over main showing areas

• 32 short diamond drill holes for a total of 3,577m. Drilling highlights include:

• 9.1m @ 1.24 g/t Au including 2.4m @ 3.04 g/t Au (TMH17-023)

• 11.52m @ 1.63 g/t Au including 1.08m @ 6.21 g/t Au (TMH17-030)

• 7.1m @ 2.4 g/t Au and 0.40m @ 82.5 g/t (TMH11-009)

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Trench 3

Trench 10Trench 1

Trench 6

Annie!!!!s Ladder Showing

Trench 2

Trench 8

Trench 9

Trench 7

South Dyke Swarm

Swain Swarm

North Dyke Swarm

View of Haultain Showings, Looking NW

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What We Have Learned

• Major EW oriented deep crustal Archean shear zone (Ridout) transects the property

• Sinistral sense of offset

• Two main shearing directions (Az 275°, Dip -60°and Az 330°dip -45°)

• Extensive qtz/sercite/ankeritealteration, Fuchsite, Potassicalt

• Evidence for pre, syn and post syenite emplacement deformation

• Evidence for syn and post syenite gold mineralization

• 3 main styles of gold mineralization

1. Intrusion Hosted Stockworkveining

2. Shear Hosted Veining

3. Disseminate sulphides

• Target Potential– Young Davidson/Malartic style,

syenite hosted stockwork veining and sulphides (Bulk mineable 1-3 g/t Au)

– Plunging shoots and flat lying high grade shear hosted veins

– Sulphide replacement in shear zones and permeable iron or carbon rich host rocks

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1. Intrusion Hosted StockworkVeining

A

A’

7

Mineralization:

" Native gold in qtz/carb veining

" Disseminated pyrite

" Tellurides

Intrusion Hosted Stockwork Veining

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Syenite Geochemistry

Island Arc Tholeiite

Calc-alkaline

High K and Shoshonite

Basalt Andesite Dacite/Rhyolite

70 60 50 40 30 20 10 0

0.0

10.1

01.0

010.0

0

Co-Th plot (Hastie et al. 2007)Co

ThYoung-Davidson - syenites

Van Hise - syenites

Van Hise - monzoniteAuriferous Syenites

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2: Shear Hosted Veining

• Two main structural fabrics Identified:– Shearing around EW trending Dyke

Swarms (090°/-60°)

– NW Trending features (330°/-50°)

• Potential for multiple sites of shear hosted mineralization:

– Veining in shears and pressure shadows developed around syenite intrusions

– Dyking intrudes 330°structures, introducing gold bearing fluids to dhear structures

– Target areas include where structures intersect dykes, favourable iron rich/carbon rich hosts

• Two Shear Vein Systems Identified:– South Central Shear

– Northwest ShearShear Hosted Vein located in Trench 3 – sampling returned gold values up to 2.38 g/t Au

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A

A’

2: Shear Hosted Veining

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• Potential for Flow Ore (High grade bulk mineable)

• Disseminated Sulphides in gabbro/mafic volcanics

• 19.5 g/t Au in disseminated gabbro in Trench 3

• Elevated gold values near end of Hole TMH11-021

3. Disseminated Sulphides

Disseminated sulphides from Trench 1

Disseminated sulphides and veining in Mafic Volcanics from Hole TMH11-021

! Has not been the focus of exploration work to date

! Multiple prospective environments identified

! Untested IP Targets

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Gold Mineralization from 2017 Drilling

TMH17-023

Quartz veining in altered syenite which returned 9.1m @ 1.24 g/t Au including 0.8m @ 4.29 g/t Au from 115.6m

TMH17-030

Quartz veining in altered syenite which returned 11.52 @ 1.63 g/t Au including 1.08m @ 6.21 g/t Au from 122.1m and 1.03m @ 5.41 g/t Au from 128.9m

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Diamond Drillhole Locations

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T1

T2

T3

Mineralization Styles and Structural Targeting

Type 1 Veins• Extensional Quartz-Carbonate-Albite veins hosted

within syenite. • Prominent style of veining at Trench 3 (Annie’s Ladder

Showing) and Trench 5.• <5cm wide • Orthogonal to slightly oblique to local and regional

foliation – steeply dipping E• Orthogonal to syenite contacts and inclusion lineations• Alteration halo with k-feldspar, pyrite and hematite(?)Type 2 Veins• NW-trending, variable dips generally to NE/E• Coarse grained euhedral quartz-possibly open space

cavity filling• Possibly contemporaneous with T1 veins (tension

gashes show similar orientation to T1 veins)Type 3 Veins• Quartz-carbonate shear veins up to 50 cm wide.• Foliated • Occur along and parallel to contacts or within ultramafic

host rocks (parallel to foliation)• Green mica slivers and sulfide bearing

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Vein Type Distribution

Type 1

Type 2

Type 3

• Type 1 and Type 2 veins show considerable overlap suggesting they may be contemporaneous.

• Field evidence supports this hypothesis.

• Type 3 veins are distinct from the other two vein types

T1

T2

T3

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Targeting Considerations

Best Alteration and Grade Thickness Trends• Occur near intersection points for EW- NW trending structures that define

a shallow NE plunge• In Syenite these intersection trends express themselves as zones of sub-

vertically dipping stockwork veining developed around stacked flat sets of vuggy quartz veining as exposed at Annies Ladder – Trench 3 showing

Best gold seems to be spatially associated with NW trending shears• Gold veining in a variety of brittle and ductile rocks. Need to consider

different vein morphology in different rock types• Soil, IP and Mag data help define NW trending structures• NW trending Jacob Lake fault can be traced across property for >10

kilometres

Drilling and IP Resistivity Data suggest system improving at depth• Drilling at Trench 3 encountering trends increasing alteration and grade

thickness with depth• Strong IP resistivity 200x300m feature modelled for depths below 150m

near junction between main mineralized EW and NW trending shears remains untested

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Proposed Drill holesAnnies Ladder – Trench 3

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Elevated Mobile Element Soil Geochem Trend

Elevated Soil Gas Au Trend

(stars) Elevated Multi Element MMI

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IP Target at Depth: Modelled Resistivity at 125m depth

Feature 2

Feature 1

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Other Exploration Targets

• Gold mineralization on the property is concentrated near the junction of E-W oriented shear zones (Ridout Structure) and NW shear zone (Jacob Lake Fault)

• Review of historic work completed on the SE portion of Property shows Au showings in diamond drilling (Bilsky Lake Showing). Highlights include:

• 1.34 g/t Au over 0.8m

• 4.23 g/t Au over 0.4m

• Staked 2 additional mining claims in the vicinity of this showing

• 5 historic showings of Ag and Co mineralization have seen little to no modern exploration including:

• “Cobalt Nugget” Co-Ag showing

• “Big Four” Co-Ag showing (located on claim 1227354, ‘pending proceedings’)

These showings need to be investigated to evaluate their potential (prospecting, sampling)

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Recommendations

Gowganda Gold Discovery

Bilsky Lake Showing

Jacob Lake Fault Target Area

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Recommendations

• Additional drilling near Trench 3-Annies Ladder to follow new trend of better grade-thickness material at depth and along strike. This zone may approach the surface to the west of Trench 3 which has highlighted a new target area to test with drilling.

• With the discovery of a second zone of mineralization beneath the Annie’s Ladder showing, exploratory holes should investigate the possibility of multiple stacked zones further at depth. Drilling to date has tested the zone to ~100m vertical. Testing this area to a depth of 200m vertical is recommended in the next program

• The IP resistivity target identified NE of Trench 5 remains a compelling target. Anomalous Au mineralization and hydrothermal alteration within syenite and ultramafic host rocks in TMH17-031 are suggestive that the area remains prospective

• Regional targets should include prospecting and mapping of the Jacob Lake Fault to the NW and SE of the 2016-2017 work areas. The area of the historic Bilsky Lake showing should be investigated with prospecting, stripping and diamond drilling

• Cobalt-Silver showings on the property should be investigated to determine the economic potential of these important commodities. Prospecting, stripping and diamond drilling should be considered should the showings prove to be of economic interest

XTM – TSXV transitionmetalscorp.com

Greg Collins P.Geo.

gcollins@transitionmetalscorp.com

Telephone: 705-872-6390