AWX.V · 2022-04-21 12:00:00

ArcWest Exploration Inc. Provides Update on its Earn-in Agreement with Sanatana Resources Inc. for the Oweegee Dome Porphyry Copper-Gold Project in British Columbia's Golden Triangle

Mergers & Acquisitions Property Options & Staking

ArcWest Exploration Inc. Provides Update on

its Earn-in Agreement with Sanatana

Resources Inc. for the Oweegee Dome

Porphyry Copper-Gold Project in British

Columbia's Golden Triangle

Vancouver, British Columbia--(Newsfile Corp. - April 21, 2022) - ArcWest Exploration Inc. (TSXV: AWX)

("ArcWest" or the "Company") is pleased to announce an update on its agreement (the "Earn-In

Agreement") with Sanatana Resources Inc. ("Sanatana") (TSXV: STA) to explore ArcWest's Oweegee

Dome porphyry copper-gold project in British Columbia's Golden Triangle (the "Oweegee Project").

As previously disclosed by ArcWest and pursuant to the Earn-In Agreement, Sanatana can earn an initial

60% interest (the "First Option") in the Oweegee Project by funding, over a four-year period, cumulative

exploration expenditures of $6,600,000 and by making staged cash and share payments totaling

$500,000 and 2,000,000 shares, respectively. Upon completion of the First Option and receipt of an

initial interest notice from Sanatana, Sanatana will have a 60 day period to elect to earn an additional

20% interest in the Oweegee Project, for an aggregate 80% interest, or to form a joint venture with

ArcWest.

Pursuant to the Earn-In Agreement, Sanatana was required to fulfill the following obligations (the "Year

One Obligations") to keep the First Option in good standing:

paying to ArcWest an aggregate of $50,000 by December 31, 2021 (of which $12,500 has been

paid and a balance of $37,500 is subject to TSX Venture Exchange (the "Exchange") approval);

issuing to ArcWest 300,000 common shares of Sanatana (the "Sanatana Shares") by December

31, 2021; and

iii

incurring not less than $600,000 in exploration expenditures on the Oweegee Project by November

31, 2021.

Other than the payment of $37,500 and the issuance of 300,000 Sanatana Shares to ArcWest, which

remain subject to the approval of the Exchange, Sanatana has fulfilled the Year One Obligations. The

payment of $37,500 from Sanatana to ArcWest and the issuance of Sanatana Shares to ArcWest are

expected to be completed upon receipt of approval from the Exchange. ArcWest has waived the

requirement for Sanatana to complete such obligations by December 31, 2021 provided that the cash

payment and issuance of the Sanatana Shares are made promptly after Exchange approval.

The optioning of the Oweegee Project under the Earn-In Agreement constitutes a "reviewable

disposition" under the policies of the Exchange and, as a result, the Earn-In Agreement is subject to the

review and approval of the Exchange. The Exchange has conditionally approved the Earn-In Agreement

subject to ArcWest satisfying the filing requirements of the Exchange outlined in Policy 5.3 of the TSXV

Corporate Finance Policies.

Pursuant to a finder's agreement (the "Finder's Agreement") between the Corporation and Nathan

Skubovius (the "Finder"), a finder's fee (the "Finder's Fee") equal to 4% of Sanatana's cash and share

payments to ArcWest under the Earn-In Agreement is payable to the Finder. 50% of the Finder's Fee is

payable in cash and 50% of the Finder's Fee is payable by the issuance of common shares of ArcWest

(the "ArcWest Shares"). For the purposes of determining the number of ArcWest Shares issuable to the

Finder in connection with the Earn-In Agreement, the issue price will be equal to the closing price of the

ArcWest Shares on April [

], 2022 (the "Issue Price"). Accordingly, in connection with Sanatana's

fulfilment of the Year One Obligations, the Finder: (A) will be issued that number of ArcWest Shares as is

equal to (i) $50,000 multiplied by 2% divided by the Issue Price, and (ii) the aggregate issue price of the

300,000 Sanatana Shares issued to ArcWest multiplied by 2% divided by the Issue Price, and (B) will

be paid a cash payment equal to (i) $50,000 multiplied by 2%, and (ii) the aggregate issue price of the

300,000 Sanatana Shares issued to ArcWest multiplied by 2%. The Finder's Agreement and the cash

and share payments due to the Finder are subject to approval by the Exchange.

For further information please contact: Tyler Ruks, President and CEO at +1 (604) 638 3695.

About ArcWest Exploration Inc.

ArcWest Exploration is a project generator focused on porphyry copper-gold exploration opportunities

throughout western North America. The company is in possession of eight 100% owned copper-gold

projects throughout BC's premier porphyry copper-gold districts. These include ArcWest's Todd Creek

and Oweegee Dome projects, which are two of the largest and most prospective land positions for

copper-gold exploration in BC's prolific Golden Triangle. Oweegee Dome neighbours Seabridge Gold's

supergiant KSM-Iron Cap-Snowfield porphyry copper-gold deposit and Todd Creek neighbours

Pretium's Brucejack mine property. Newcrest Mining recently completed the acquisition of Pretium and

its high grade Brucejack gold-silver mine in a transaction valued at $3.5 billion. Three ArcWest projects

are currently being advanced by partners through earn-in and joint venture agreements; multiple ArcWest

copper-gold projects are scheduled to undergo partner funded drill testing in 2022. By conducting

partner funded exploration on multiple exploration projects simultaneously, ArcWest's chances of

discovery are enhanced while exposing shareholders to minimal dilution. The company is managed by

an experienced technical team with a track record of discovery and a reputation for attracting well-funded

senior partners, including Freeport McMoRan, Robert Friedland group companies, ITOCHU,

Antofagasta and Teck.

This news release contains statements about ArcWest's expectations and are forward-looking in

nature. As a result, they are subject to certain risks and uncertainties. Although ArcWest believes that

the expectations reflected in these forward-looking statements are reasonable, undue reliance should

not be placed on them as actual results may differ materially from the forward-looking statements. The

forward-looking statements contained in this news release are made as of the date hereof, and

ArcWest undertakes no obligation to update publicly or revise any forward-looking statements or

information, except as required by law.

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/121157

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