Page 2 CRUCIBLE RESOURCES LIMITED

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3 Hearn Creek Project Nelson Mining Division NTS 082F06 Project Location: UTM NAD 83: Zone 11, East North Registered Owner: Doug Warkentin Operator: Crucible Resources Ltd. Northwest Area Reconnaissance and Sampling Report Project Tenure Numbers: , and SOW Event Numbers: and July 26, 2018 Prepared by: Doug Warkentin, P.Eng

4 Page 2 TABLE OF CONTENTS Introduction Location and Access Tenure Information Regional Geology Local Geology Property History Summary of Work Work Program Sampling and Data Collection Interpretation of Results References Author s Qualifications Statement of Costs FIGURES 1 Hearn Creek Project Location Map Project Tenure Outline Regional Geology...6 TABLES 1 Hearn Creek Project Mineral Titles Recorded Past Producing Mines within 1500 m of the Hearn Creek Project Rock and Chip Sample Descriptions and Analytical Results. 10 Appendix 1 Sample Location Map Appendix 3 Assay Report

5 Page 3 Introduction Location and Access The Hearn Creek project lies along an east-facing mountain slope on the west side of the Salmo River valley, approximately 1 to 3 kilometres north of Salmo BC. From the valley bottom, at approximately 700 meters elevation, the property rises to nearly 1400 meters near the northwest boundary of the claim. Along the Salmo River, Highway 6, a paved, all-weather provincial highway passes within about 200 meters of the southeast corner of the Hearn property. This highway connects Salmo with Ymir and Nelson to the north, and provides ready access to other commercial centres in the West Kootenays, including the smelter complex at Trail, BC. The entire claim block lies within 2.5 kilometres of the highway. Transmission lines with 63 kv capacity run along Highway 6. The general project location is shown in Figure 1. The property does not have direct road access, but can be reached via a network of inactive logging and mine roads, most of which are impassable even by 4WD vehicle. The principal access point for this road network was the old Clubine Mine road, which leads to an area of old mine workings to the north of the property, and connects with deactivated logging roads extending along the hillside to the south as far as the north side of the Hearn claim. Washouts prevent full vehicle access to most of these roads, but some of the roads remain in fair condition, while others are completely overgrown. To the west this same network of deactivated logging roads connects with active logging roads in the Hooch Creek area. This system of roads is gated where it connects to the Erie Creek road west of Salmo. Tenure Information The Hearn Creek Project consists of two Mineral Titles Online claims with a total area of 211 hectares. The claims are owned by the author, and Crucible Resources Ltd. has an option to acquire 100% ownership of the project. Claim details are shown in Table 1. The expiry dates shown in this table reflect the application of work described in this report. The general area has hosted many historical mines and prospects, and there are therefore many historical crown-granted mineral claims, many dating from the 1890 s and early 1900 s. A search of recent and historical claim maps and references, however, indicate that the Hearn Creek claim area has never had any crown grants issued. The closest such claim, the Del (Lot #15672) lies less than 200 meters north of the project boundary, but it has reverted. Figure 2 outlines the tenure of the Hearn Creek Project.

6 Page 4 Hearn Creek Map Center: N W Figure 1 Hearn Creek Project Location Map Title Number Claim Name Owner Table 1 Hearn Creek Project Mineral Titles Map Number Issue Date Good To Date Area (ha) HEARN (100%) 082F 2016/JUL/ /JUL/ HOOCH (100%) 082F 2017/OCT/ /OCT/ Total:

7 DOUBLE S HUNT Page 5 FREE SILVER (L.2902) NEVADA (L.3504) PORCUPINE (L.4634) GOLD HILL CLUBINE 082F F.024 ERIE CREEK KEYSTONE (L.5137) CANADIAN KING (L.4196) ARLINGTON (L.3648) SECOND CHANCE Salmo SILVER DOLLAR (L.12599) ERIE CURLETT ASPEN (L.12471) SHAMROCK SHAMROCK BRECCIA 082F.014 Map Center: N W Figure 2 Project Tenure Outline ASPEN SHO Regional Geology The general area of the Hearn Creek project is underlain by Jurassic Rossland formation rocks intruded by granitic, granodioritic and monzonitic plutons, including most notably the Cretaceous Anstey Pluton, which dominates the area to the east of the property. The general geology is shown in Figure 3. In the Ymir-Salmo area the Rossland formation includes three separate major units: 1) The Hall formation, consisting of mudstone, siltstone, shales and other fine sedimentary rocks; 2) The Elise formation, consisting of basaltic volcanic rocks; and 3) The Ymir group, consisting of limestone, argillite, siltstone and slates. In the area of the Hearn Creek property, the Elise and Hall formations are in contact with Cretaceous and Jurassic intrusives. The large granitic Anstey Pluton (Hidden Creek Stock) underlies part of the Hearn claim, in contact with both units of the Rossland formation, and its contact zones with these rock units likely have an important influence on the geology of the property. A small granitic intrusive body occurs on the south side of Keystone Mountain, within the Hall formation, at the north end of the Hearn Creek property.

8 Page 6 CmL- Cambrian Laib formation undivided sedimentary rocks KAP Cretaceous Anstey Pluton: granodioritic intrusive rocks ljra - Lower Jurassic Rosslan Group Archibald Formation: mudstone, siltstone, shale, fine clastic sedimentary rocks IJRE Lower Jurassic Rossland Group - Elise Formation: basaltic volcanic rocks IJRH - Lower Jurassic Rossland Group Hall Formation: mudstone, siltstone, shale fine clastic sedimentary rocks MJgr Middle Jurassic : granite, alkali-feldspar granite intrusive rocks TrJY Triassic to Jurassic Ymir Group: limestone, slate, siltstone and argillite Figure 3 Regional Geology No major regional faults are known to cross the property, but the northwest trending Erie Creek fault lies about 2 kilometers to the southwest of the property. Dikes and sills of Rhyolite, Aplite and Lamprophyre are found throughout the area, especially in the Elise volcanics and the Hall formation sediments. The Hall Creek Syncline, a major south-plunging fold in the Hall formation sediments, passes to the west of the property.

9 Page 7 Mineralization is common in several of the rock formations in this area, with numerous past producing mines and other occurrences documented in the surrounding area. In the immediate area the Elise volcanics have been the most productive, with mineralization often occurring in or near contact zones or areas altered by intrusives. The most common economic mineralization has tended to be quartz veins containing variable amounts of sulphide minerals. These veins can contain significant gold values as well as silver lead and zinc, and occasionally copper. To the northeast the vein deposits of the Ymir camp produced gold, silver, lead and zinc, and to the north a few larger bodies of disseminated mineralization have also been identified, mainly containing gold and copper, and in at least one case, molybdenum. To the east the Kootenay Arc rocks also contain numerous pastproducing mines and developed prospects. Limestone-hosted lead-zinc deposits are most common, but tungsten, molybdenum, silver and gold are also found. Local Geology The Hearn Creek project includes rocks of the Rossland Group, including Hall formation sediments and Elise volcanics. Within the project area these rocks are mainly near their southern or southeastern contacts with the granodiorite Hidden Creek stock. Important intrusive formations include both the Hidden Creek stock in the south and a small unnamed granitic intrusion at the northern claim boundary. There are also tongues and dykes of granite/granodiorite, aplite and lamprophyre intruding and altering the Hall formation sediments. Contact zones show heavy alteration, but known mineralization is mainly limited to pyritic shears and quartz stringers. The largest areas are those underlain by Hall formation and Elise volcanic rocks, and the contacts of both formations with the Hidden Creek stock passes through the center of the property. To the northeast of the property, the Elise rocks on the east side of the Hall formation are primarily mafic flows, breccias and volcaniclastics, with occasional areas of crystal tuff and argillite, but within the Hearn Creek claim, where they occur to the west of the Hall rocks, their makeup has not been as closely examined. The portion of the Hall formation lying within the claim area consists mainly of north northwest trending argillites and siltstones, but an area of carbonaceous siltstones and shales occurs at the north end, surrounding the small unnamed granitic intrusive body on the south slope of Keystone Mountain. In this area the Hall formation rocks are in possible fault contact with the body of the Elise rocks, and with the Hidden Creek stock to the southeast.. Aside from pyritic shears, mineralization within the Hearn Creek claim area has not been directly identified, but in the surrounding area it consists mainly of north to northwest trending quartz or quartz-carbonate veins with variable amounts of sulphide mineralization, including galena, pyrite, chalcopyrite and minor sphalerite, tetrahedrite and pyrrhotite. The Clubine Mine to the north and the Keystone and Arlington Mines to the northwest produced significant tonnages of high grade gold ore from this type of vein. Strong multi-element geochemical anomalies have been identified in the area, but the source mineralization has not yet been clearly identified. Given the range of elements represented, mineralized zones within the carbonaceous shale unit is a potential source, but high values have not yet been identified in outcrops. Property History Exploration in the Ymir-Salmo region has a history that dates back to the 1890 s, beginning with the Ymir camp, to the northeast of the property. In the Keystone-Second Chance area, near the

10 Page 8 northwest corner of the property, exploration and development work, with some production, has occurred intermittently since The Keystone, an apparent extension of the nearby Arlington mine, produced a total of 2700 ounces of gold and 6000 ounces of silver from 2200 tons of ore over a period that extended from 1901 to 1981, mainly in the 1930 s. The Second Chance was likely a further extension of the same narrow, shallow-dipping vein structure mined at the Keystone. It was developed by short adits, and a small amount of ore was shipped in the 1930 s. The exact location is uncertain, but it was likely on the Del Reverted Crown Grant, which lies about 200 meters to the north of the Hearn claim. The only significant work known to have been done in the area of the Second Chance mine and the Hearn Property in recent years are two limited programs of geochemical soil sampling that partly overlap the current boundaries of the property. This includes work by Delaware Resources in 1983 that showed a significant gold-in-soil anomaly on the south-east side of Hooch Creek, and work by Highland Queen Mines in 1988 that indicated a multi-element soil anomaly along the steep eastfacing hillside at the centre of the Hearn property. Table 2 lists significant known mineral occurrences that lie within 1500 meters of the claim boundaries and within the same formations that underlie the property. It also summarizes production from those sites with recorded ore shipments. While none of these occurrences are within the current property boundaries, past work at some of these sites indicated known or inferred extensions of mineralization into surrounding areas. There is evidence of historical workings in the property, including a shallow shaft and small pits, but there is no known reference to this work in historical records. The workings are located a short distance south of the Second Chance area and they are possibly related to the developments at that location. Previous work in the Hearn claim area by Crucible Resources Ltd. has had some success in identifying areas with potential for hosting high-grade mineralization. In the broader Hearn Creek area, stream sediments and limited soil sampling have returned strongly anomalous zinc values over a large area along with variably anomalous values for copper, lead, silver, gold and molybdenum. The strongest soil geochemistry values found fall within the Hearn claim, with anomalous values also extending several hundred meters beyond the claim boundary to the north. Mineralized vein material found near Hearn Creek, about 100 meters from the north end of the claim, returned values of greater than 6% zinc and 1% lead with significant precious metals values. Summary of Work One day of prospecting was carried out on the Hearn claim, investigating the northwest part of the project area, including historical workings to the south of the Second Chance workings. The work

11 Page 9 was intended both to scope out possible historical workings and to investigate access and rock exposures in an area of anomalous gold-in-soil reported from previous exploration in the area. All work was carried out along old logging and/or mining roads which were de-activated, but generally in good condition. A total of five rock samples were collected both from apparent workings and from gossanous road cut exposures. Sampling and Data Collection Work Program Rock samples were collected along a network of old logging and/or mine roads extending eastward from the Hooch Creek area up onto the ridge that runs south from Keystone Mountain. The work was conducted during a site visit occurring on October 1 st, There is more evidence of past exploration in this area than in any other part of the claims, given the proximity to the historical Keystone and Second Chance mines. Some undocumented workings were identified, and rock samples were mainly collected to evaluate potential mineralization associated with these workings. Relevant sample locations are identified on the map in Appendix 1. Assay results for the samples collected are summarized in Table 3. Complete assay reports are also included in Appendix 2. Samples were dried, crushed, split and a representative sub-sample was pulverized before being analyzed. Samples were digested in aqua regia using a 0.5 gram portion of the pulverized material. All samples were analyzed with a standard 36 element scan by ICP-MS. All analyses were carried out by Bureau Veritas Commodities Canada Ltd. in Vancouver. Sample Descriptions Rocks exposed along roads in this area are mainly sediments of the Hall formation or granodiorite intrusions. The sediments are mainly schists with variable amounts of shearing and alteration. Granodiorite exposures show less alteration, but some minor alteration with quartz veins and minor sulphides were noted in an area of a recent pit excavation. A grab of float containing minor pyrite and iron staining (CR ) was slightly anomalous in copper and molybdenum but carried no other significant values. Along a short spur road to the north, rock exposures were mainly gossanous schists, and this is where evidence of historical workings were noted. Below a small open cut there was abundant float rock showing narrow quartz veining and iron staining. Some pyrite was also noted. A composite of mineralized float material (CR ) however, did not return any significant values. Further along this spur road, subcrop showed highly limonitic schist with silicification and pyrite. Assay results from a grab sample of this material (CR ) did not give significant values. Back to the south along this same spur an old shaft was found on the hillside a few meters above the road. The shaft was water-filled and at least 3-4 meters deep. Dump material was mainly altered schist similar to the surrounding outcrops, but also included some vein quarts with minor sulphides. A composite grab sample of dump material included both quartz vein material and limonitic schist. The sample (CR ) again carried no significant values. A final sample was collected from a road-cut outcrop to the southeast of the shaft. There was no evidence of past workings near this outcrop, which was primarily altered and limonitic schist similar to other outcrops in this area but showing a high degree of shearing and apparent weathered sulphides. A chip sample across a 3-meter exposure (CR ) was anomalous for zinc, but other values were low.

12 Page 10 Table 3 Rock and Chip Sample Descriptions and Analytical Results Sample # Date Sample Type UTM UTM Width Au Ag Cu Pb Zn East North m g/t g/t ppm ppm ppm CR Alteration and minor sulph in granite CR Altered schist with qtz veins - near trench CR Weathered schist with sulph - subcrop CR Qtz vein and schist in shaft dump < CR Weathered sulphidic schist < Interpretation of Results While this work was successful in identifying previous workings in the upper part of the claims, closest to the past producing Keystone and Second Chance mines, rock samples did not return any significant values. The ore from the neighbouring mines was high grade gold-in-quartz, but the veins were generally narrow and erratic, so the lack of values in the samples collected should not be considered as a definitive evaluation of the workings found. Further exploration of this area to map workings in detail and trace mineralized structures would be justified, particularly in light of a strong gold-in-soil anomaly previously reported near this area. This work did not focus on the source of the base metal soil anomaly previously identified at a lower elevation to the southeast but some exposures of the carbonaceous schist unit of the Hall formation were noted in the eastern part of the traverse, near the top of the ridge. Mineralized bands or contacts within this unit are a likely source of this anomaly. A sample of weathered schist peripheral to this unit did show anomalous zinc content, adding further support for investigating the base metal potential of this unit and surrounding contact zones. Further work should focus on the area to the east of the current work, including prospecting possible outcrops and extending soil sampling to higher elevations on the southeast facing hillside below the ridge. References BC DEPT. of ENERGY MINES and PETROLEUM RESOURCES, Minfile Mineral Occurrence Database. BC DEPT. of ENERGY MINES and PETROLEUM RESOURCES, Bulletin , page 99. COCKFIELD, W.E., 1936, Lode Gold Deposits of Ymir-Nelson Area, British Columbia; GSC Memoir 191. DRYSDALE, C.W., 1917, Ymir Mining Camp, British Columbia; GSC Memoir 94. FAULKNER, R.L., 1988, Geological, Geochemical, Geophysical and Diamond Drilling Report on the Silver Dollar Property, for Highland Queen Mines Ltd. BC Assessment Report # HOY, T. and DUNNE, K.P.E, 2001, Metallogeny and Mineral Deposits of the Nelson-Rossland Map Area: Part II: The Early Jurassic Rossland Group, Southeastern British Columbia; BCGS Bulletin 109, page 40.

13 Page 11 McALLISTER, A.L., 1951, Ymir-Map Area; GSC Memoir 308. SANTOS, P., 1983, Report on the Keystone Group of Claims, Keystone Mountain Area, Nelson Mining Division, British Columbia, Canada, for Delaware Resources Corp. BC Assessment Report # WARKENTIN, D., 2010, Clubine-Nevada Project: Clubine South, Hearn Creek and Nevada Areas Exploration and Geochemical Sampling Report. BC Assessment Report # WARKENTIN, D., 2012, Clubine-Nevada Project Geochemical Sampling, for Crucible Resources Ltd. BC Assessment Report # WARKENTIN, D., 2013, Clubine-Nevada Project Geochemical and Metallurgical Testing, for Crucible Resources Ltd. BC Assessment Report # WARKENTIN, D., 2016, Hearn Creek Project Geochemical Sampling Report, for Crucible Resources Ltd. BC Assessment Report #36456.

14 Page 12 Author s Qualifications I, Douglas Warkentin, P.Eng., a professional engineer with a business address at 7069 McBride Street, Burnaby, B.C., certify that: I have been a Registered Member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia since I am a graduate of the University of British Columbia, Vancouver, B.C. and hold a degree of Bachelor of Applied Science in Mining and Mineral Process Engineering. I have practiced my profession as a Metallurgist and Mineral Process Engineer for 30 years. I am currently employed as a Metallurgical Engineer by Kemetco Research Inc., Vancouver B.C., and have previously been employed as a Mineral Process Engineer by Vista Mines Inc., Coastech Research Inc., NTBC Research Corp., Biomet Mining Ltd., Blue Sky Mines Ltd., and Vizon Scitec Inc. I have also served as a Director of Duncastle Gold Corp., a TSX-Venture listed company. Since 2001 I have acted as an independent engineering consultant for a number of mining clients. I am a qualified person for the purposes of National Instrument in relation to metallurgical testing and evaluation programs. I directly conducted or supervised all site work, sampling, sample handling and preparation related to the Hearn Property that is described in this report. I am the sole author of this report. I am not aware of any material fact or material change with respect to the subject matter of this technical report that is not reflected in this report, the omission to disclose which would make this report misleading. Dated at Vancouver, B.C., this 26 th day of July Doug Warkentin, PEng. Metallurgical Engineer

15 Page 13 Site Prospecting and Geochemical Sampling Statement of Costs Logistics and Site Labour Doug Warkentin: October 1-2, 2017 (14 $55/hr) $ Transportation (2 days rental and fuel) $ Accommodation, Food and Supplies (2 days) $ Sample Analysis Sample Preparation (5 rock $13.25/sample) $66.25 Sample Assaying (5 samples, $16.64/sample) $83.21 Report Preparation $ Total Cost $1,547.37

16 Appendix 1 Sample Location Map

17 E SECOND CHANCE E N Claim Boundary CR (0.5, 0.8, 66, 12.1, 116) CR (1.4, 0.4, 64, 15.2, 80) CR (<0.5, 0.5, 74, 16.5, 82) CR (<0.5, 0.4, 79, 16.0, 603) CR (1.4, 0.2, 98, 8.0, 21) Hearn Creek Project - Sample Location Map - Rock Sample (Au - ppb, Ag, Cu, Pb, Zn - ppm) Scale 1:8,000

18 Appendix 2 Assay Report

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