American Eagle Gold Closes C$2.67 Million Financing

American Eagle Gold Corp. recently announced the successful closure of a strategic investment by Teck Resources Limited. Through a structured charity flow-through financing, Teck has acquired a significant stake in American Eagle Gold, providing the necessary funds for the company's exploration efforts at the NAK copper-gold porphyry project.

American Eagle's NAK Project

The NAK Project is located in the Babine copper-gold porphyry district of British Columbia, Canada. The project benefits from its proximity to past-producing mines and excellent infrastructure. Previous drilling at the site revealed a large near-surface copper-gold system, and in 2022, American Eagle's drilling program successfully identified significant copper-gold mineralization at deeper depths.In 2023, American Eagle aims to expand the known mineralized footprint at the NAK Project and identify high-grade sources of copper and gold. The property is easily accessible by road, allowing year-round drilling operations without the need for helicopter support. The promising initial results make the NAK Project an ideal candidate for further exploration.

Teck Resources' Strategic Investment

Through the structured charity flow-through financing, Teck acquired 5,940,000 common shares of American Eagle Gold. The purchase price of $1.66 million, or $0.28 per Common Share, solidifies Teck's stake in the company at approximately 19.9% of American Eagle's issued and outstanding common shares on a non-diluted basis.

As part of the agreement, Teck holds certain investor rights, including an equity participation right to maintain its pro-rata ownership in American Eagle and specific information rights relating to the NAK Project. Teck's purchase of the Common Shares was made for investment purposes, and the company may adjust its investment in American Eagle based on market conditions and other relevant factors.

Financing the Drill Programs

The funds raised through the offering fully support American Eagle's extended 2023 Drill Program and the upcoming 2024 Drill Program at the NAK Project. The extended drilling efforts aim to expand the known mineralized footprint and identify high-grade sources of copper and gold.

The Offering involved the issuance of 5,940,000 common shares on a flow-through basis, generating approximately $2.67 million in issue proceeds. No warrants or finder's fees were issued in connection with the Offering.

Qualifying Expenditures and Renouncement

The gross proceeds from the Offering will be used to incur eligible resource exploration expenses on American Eagle's Canadian mineral exploration properties. These expenses will qualify as "Canadian exploration expenses," "flow-through critical mineral mining expenditures," and "BC flow-through mining expenditure," as defined in the Income Tax Act.

The Qualifying Expenditures, amounting to at least the gross proceeds raised from the Offering, must be incurred on or before December 31, 2024. American Eagle will renounce the Qualifying Expenditures to the initial purchasers of the Charity FT Shares with an effective date no later than December 31, 2023. In the event that the renouncement is not achieved or if the Qualifying Expenditures are reduced, the Company will indemnify each initial purchaser for any additional taxes payable due to the Company's failure to renounce the Qualifying Expenditures as agreed.

Ownership and Early Warning Report

Teck's acquisition of the Common Shares solidifies its ownership in American Eagle Gold. As long as Teck's ownership remains above 5.0% of American Eagle's issued and outstanding common shares on a non-diluted basis, Teck holds certain investor rights. These include the equity participation right and information rights relating to the NAK Project.

Teck's head office is located in Vancouver, BC, and the company's early warning report can be obtained from Chris Stannell at 604-699-4368.

Legal Considerations

The securities issued as part of the Offering have not been registered under the United States Securities Act of 1933, nor the securities laws of any state of the United States. Therefore, they may not be offered or sold in the United States or to U.S. persons without proper registration or exemptions from registration requirements.

Both the TSX Venture Exchange and its Regulation Services Provider accept no responsibility for the adequacy or accuracy of the information presented in this release.

About American Eagle Gold Corp.

American Eagle Gold Corp. is a company primarily focused on exploring the NAK project in the Babine Copper-Gold Porphyry district of central British Columbia. With its head office in Toronto, Ontario, American Eagle Gold Corp. aims to unlock the full potential of the NAK Project and contribute to the growth of the mining industry.

Qualified Person Statement

Mark Bradley, a Certified Professional Geologist, has verified and approved the information contained in this news release. As a 'qualified person' for the purposes of Canada's National Instrument 43-101 Standards of Disclosure for Mineral Properties, Bradley's expertise ensures the accuracy and reliability of the data provided.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to significant risks and uncertainties. These statements are based on current expectations and may differ materially from the suggested outcomes. American Eagle Gold Corp. assumes no obligation to update these forward-looking statements unless required by applicable securities laws.

For additional information on risks and uncertainties, please refer to American Eagle Gold Corp.'s filings with Canadian securities regulators, available under the company's profile at www.sedarplus.ca.

To access the source version of this press release, visit https://www.newsfilecorp.com/release/179858

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For more information, contact Anthony Moreau, Chief Executive Officer, at 416.644.1567 or via email at amoreau@oregroup.ca. Visit www.americaneaglegold.ca for additional details.