The Si2 Gold Project is located in Esmeralda County, Nevada, approximately 60km northwest of Tonopah, Nevada, and 20km northwest of Allegiant Gold’s Eastside deposit (1.4Moz Au, 8.8 Moz Ag). The project is road accessible and consists of 118 BLM lode claims covering 986 hectares. The claims cover an 8 km2 area of steam heated alunite-kaolinite-buddingtonite alteration within a sequence of felsic to intermediate volcanic rocks with brecciation and strongly anomalous mercury. The alteration is interpreted to represent a high-level near-surface setting within a low-sulfidation epithermal gold-silver system. In this type of geologic setting there is typically minimal anomalous gold mineralization at surface, however, gold grades may increase at depth along controlling structures at critical locations in the hydrothermal system (i.e. boiling zones).

The Si2 Gold Project was initially identified by the same exploration team that identified AngloGold Ashanti’s Silicon project near Beatty, Nevada, and was staked based on its strong geological similarities to Silicon. The central portion of the project (65 claims) is currently held under an option agreement between Orogen Royalties Ltd. and K2 Gold Corporation.

The project is located 60km northwest of Tonopah, Nevada. Favourable infrastructure exists in the project area with an extensive system of County-maintained roads in the vicinity and historical mining and exploration roads accessing the property. Road access is from the east past Allegiant Gold’s Eastside deposit. A power transmission line is located just 3km northeast of the property boundary.

The project is located within the prolific Walker Lane belt of southern Nevada, known for its abundance of volcanic-hosted epithermal precious metal deposits, including the large historical deposits at the Comstock Lode, as well as in the Tonopah and Goldfield districts, and most recently the new discovery of the Silicon deposit near Beatty, Nevada. Exploration and development in the recent past have been typically focused on large, low-grade, bulk mineable gold and silver resources, with surficial high-grade mineralization predominately mined out. With the discovery of the Silicon deposit beneath a thick steam-heated alteration cap observed at surface, some exploration has shifted towards testing beneath preserved alteration systems for high-grade gold at depth.

Si2 is located at the northern end of the Monte Cristo Range and is host to an extensive suite of andesite and dacite flows, rhyolite domes, and later basalt flows. No age dating has been conducted within the property area, though volcanism in the region is noted from ~20Ma to 7.2Ma. Alteration is centered on several large rhyolite domes in the south, north, and western areas of the property, but is also observed within many of the andesitic and dacitic rocks. This alteration is interpreted to represent the upper levels of a precious-metal bearing epithermal system, where a mineralizing fluid boiled at depth, deposited gold, and advanced to the surface creating the steam-heated alteration observed. At surface, extensive mercury anomalism is observed in all altered rocks.

Structurally, the region is dominated by the Walker Lane fabric, with extensive regional strike slip faulting. Locally, a prominent northeast-tending fabric is observable with subsequent northwest and north-northwest offset. The northeast-trending faulting is likely extensional in nature and results in minor offset both laterally and vertically in the region. At property scale, northeast-trending normal faults which host silicified black-pyrite matrix breccias and arsenic, antimony, and mercury anomalism indicate a structural control to fluid flow.

Mineralization observed to date includes extensive intervals (185m at 0.053 g/t Au) of anomalous gold within the Southern Rhyolite Dome in thin quartz-pyrite veinlets and pyrite disseminations, as well as in thicker quartz-pyrite veins and zones of brecciation (3.2m at 0.52 g/t Au). The system has been demonstrated to be gold bearing by K2, with gold deposition beginning beneath the steam-heated alteration cap.

The project area has seen limited historical exploration, with the most significant work carried out by Pegasus Gold in the late 1980’s. Four RC holes were collared on the current K2 property, with minor gold intersected in a hole in the northeastern portion of the property. The hole was drilled vertically from the top of a gentle hill of strongly advanced argillically altered rhyolite. At a depth of ~17m, a thin 1.5m intersection of anomalous gold was made, returning 0.282 g/t Au and anomalous Hg. The hole was terminated or failed at a depth of 115m and drilled through advanced argillic and opalite alteration for its entire depth. The other three drill holes were depth limited and failed to intersect gold mineralization, though significant mercury and strongly opalized or clay altered rhyolite were intersected in each.

Miranda Gold Corporation, at the time a TSX-V listed prospect generator, held the Si2 property (“Kibby Flat”) from approximately 2013 to 2016, interpreting the property as an unrecognized high-sulphidation gold system. ASTER satellite imagery confirmed the presence of alunite and kaolinite consistent with a near-surface hydrothermal alteration centre, and subsequent field work identified intensely clay altered and locally silicified and quartz veined Tertiary rhyolite tuffs, breccias, and domes. Rock chip samples west of the current K2 property returned up to 0.621 g/t Au and 316 ppm As, while soils contained up to 39 ppb Au and 226 ppm As. A gold in soil anomaly covering 590 x 200m in a northeast orientation was defined, adjacent to the bleached alunite-kaolinite altered area. Miranda allowed the Kibby Flat claims to lapse without conducting any drilling.

In 2019, following their success at Silicon, Renaissance Gold geologists began staking similar centres of high-level epithermal alteration throughout Nevada, including the “Elba” prospect. Initial work at Elba, renamed Si2 by K2, consisted of limited geological mapping, the collection of approximately 30 rock samples for geochemical analysis, and ~45 TerraSpec non-destructive analyses across the property to confirm the style of alteration. The property was then optioned to K2 in early 2022.

Beginning in 2022, K2 has completed the following exploration work at Si2:

• WorldView 3 alteration mapping
• Grid-based rock sampling for both TerraSpec and geochemical analysis
• Geological mapping
• Property wide ground magnetic geophysical survey
• Extremely Low Frequency (“ELF”) and Induced Polarization (“IP”) geophysical surveys over the eastern half of the property
• 1,777m of diamond drilling in 4 holes at the Southern Rhyolite Dome

Table 1: Drilling highlights from the 2023 diamond drilling program at Si2.