HM Exploration Expands Pilley’s Island VMS District with Acquisition of Lewis Copper Tenure
HM Exploration Corp.
#1450 – 789 West Pender Street
CSE: HM
HM Exploration Expands Pilley’s Island VMS District with
Acquisition of Lewis Copper Tenure
~With historic drilling returning 1.84% copper over 16.7m~
Vancouver, March 11, 2026 – HM Exploration Corp. (“HM Exploration” or “HM” or the “Company”)
(CSE:HM) is pleased to announce that it has entered into a property option agreement dated March
11, 2026 (the “Agreement”) to acquire (the “Acquisition”) the option to earn a hundred percent
(100%) interest in the Lewis Copper VMS Tenure located in Newfoundland, Canada (the “Tenure” or
“Lewis Tenure”).
“This acquisition expands HM’s control of the Pilley’s Island VMS district,” said Nicholas Rodway,
President and CEO of HM Exploration. “With promising historic copper drilling intercepts and
multiple undrilled targets, we believe the district holds strong discovery potential. We are excited to
hit the ground running for HM’s first ever diamond drill program.”
Highlights:
• The acquisition of the Lewis Tenure expands HM’s Pilley’s Island land package to 42 km²
located just 55 km southeast of Firefly Metals’ Green Bay VMS project.
• Historic drilling on the Tenure at the 3B-Zone conducted by Au Pell in 1989 returned:
o PI-89-01: 16.77m of 1.84% Cu
o PI-89-02: 7.63m of 0.90% Cu
o PI-89-03: 5.19m of 0.24% Cu, 4.54% Zn, 17.43 g/t Ag, and 5.00 g/t Au
• The Tenure hosts a cluster of VMS systems and prospects with high-grade Cu-Zn-Pb-Ag +/-
Au mineralization, analogous to the Buchans camp.
• Brinco-Getty discovered the 3B -Zone during exploration carried out from 1981 to 1985.
Historic estimates reference the zone to contain approximately 200,000 tonnes grading 3.0
– 4.0% Cu* (Epp, 1984).
• Modern geophysical techniques and systematic drilling have not been conducted historically
on the Tenure.
• HM plans to conduct an inaugural drilling campaign in 2026 pending permits.
* The reported grades and volumes are historical in nature and are not considered current mineral resources or mineral reserves as defined by NI 43 -101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”). The Company has not done sufficient work to classify these estimates as current, and a qualified
person has not verified them.
About the Tenure
The Tenure consists of six (6) mineral licenses encompassing a total land area of 20 km2 making the
total area of the land package approximately 42 km2. Collectively, the Tenure along with the Pilley’s
Island Project will now be referred to as the “Lewis Pilley’s Project”. The Tenure is road accessible
and situated approximately 25 km east of the town of Springdale, approximately 210 km from the
town of Gander , approximately 55 km southeast of Firefly Metals’ Green Bay Project and
approximately 150 km from the Pine Cove Mill and Port by way of major roads.
HM Exploration Corp.
#1450 – 789 West Pender Street
CSE: HM
The Tenure has a long history of mining and exploration dating back to the late 1800’s when the
Pilley’s Island Pyrite Company Ltd. produced approximately 450,000 tons of massive pyritic ore from
the Pilley’s Island Mine-Old Mines (after Kerr, 1996).
The Lewis Pilley’s Project hosts a cluster of Volcanogenic Massive Sulfide (“ VMS”) systems and
prospects with demonstrated high -grade Zn-Pb-Cu-Ag+/-Au intersections. Mineralization is typical
bimodal-felsic VMS, with both massive sulfide and sulfide-clast breccias (Thurlow, 2001). The
geological setting is directly analogous to the Buchans camp (Thurlow, 1996), and the presence of
sulfide-clast breccias is a strong vector toward proximal massive sulfide lenses. Deep drilling has
confirmed a large hydrothermal system with significant sulfide development.
Most of the historic showings that fall within the extents of the new Tenure have not seen systematic
exploration recently or historically. Many of the historic drill holes were shallow and drilled in a
vertical orientation limiting the geological knowledge of the extents of the underlying lithology and
mineralization. Work is bei ng planned to validate historic assay results as well as collect new data
from the 3B-Zone, Clifford Jones (Bull Road) Extension, Bouzanne Shaft, Henderson, Mansfield and
Pilley’s Cove Showings.
Figure 1: Regional map of Newfoundland displaying the location of the Pilley’s Island Project and other significant mineral exploration
and mining projects in Newfoundland – Canada.
HM Exploration Corp.
#1450 – 789 West Pender Street
CSE: HM
Geology & Mineralization
The Tenure is located within the Notre Dame Subzone of the Dunnage Tectonostratigraphic Zone. Of
note, most of the Tenure is underlain by Ordovician submarine volcanic rocks of the Roberts Arm
Group which is regionally identified as part of a mature arc sequence referred to as the Buchans -
Roberts Arm Belt that also hosts the historic Buchan’s mine (after Dunning et. Al., 1987 ).
Mineralization occurs as lower grade (Spencer’s Dock); medium grade (Old Mines); and high grade
(3B-Zone/Clifford Jones) deposits that are of both sub-seafloor replacement and exhalative varieties.
The deposits are often flanked by extensive chlorite, sericite, silica, K-feldspar and epidote alteration
often observed in bimodal -felsic VMS systems . The Spencer's Dock area displays sericite/silica
alteration that generally increases in intensity near mineralized zones, while the 3B /Old Mine areas
display sericite/silica alteration that is abundant but less widespread and is more intense when
proximal to mineralized zones (after Kerr, 1996).
VMS deposits are a globally significant source of copper, zinc, lead, silver, and gold. The Tenure’s
geology shares key characteristics with known VMS districts in Newfoundland, including the past
producing Buchans, Ming and Rambler Mines supporting the exploration potential of the Tenure.
From north to south the Tenure is underlain by:
Lushes Bight Group – Lower Ordovician
Composed of pillow basalts, pillow breccias, aquagene tuffs, massive basalt flows, flow breccias,
and chlorite schist.
Springdale Group - Silurian
Terrestrial sequence of volcanics, pyroclastics, epiclastic to volcaniclastic sediments.
Roberts Arm Group – Middle Ordovician
The Roberts Arm Group, which hosts known mineralization, is complexly faulted and consist s of an
older tholeiitic terrane overlain by more calc -alkaline thrust slices. It is suggested that it represents
an evolution from tholeiitic, back arc basalts to calc -alkaline intermediate to felsic volcanics
deposited at about the time of continental collision in a neritic to littoral environment (after Bostock,
1988).
HM Exploration Corp.
#1450 – 789 West Pender Street
CSE: HM
Figure 2: Property map of the Lewis Pilley’s Project displaying historical showings/zones located on the Tenure.
**Historic intercept lengths have been converted from feet to meters and Ag/Au results have been converted from oz/t to g/t .
Prospective Areas
3B-Zone (additional claims)
The 3B-Zone has been described as a massive sulfide zone containing Cu, Zn, Ag, Au (after Brinex,
1967). Brinco-Getty discovered the 3B -Zone during exploration carried out from 1981 to 1985.
Historic estimates reference the zone to contain approximately 200,000 tons grading 3.00 – 4.00%
Cu* (Epp, 1984).
* The reported reserves are historical in nature and are not considered current mineral resources or mineral reserves as defined by NI 43-101. The Company
has not done sufficient work to classify these estimates as current, and a qualified person has not verified them.
Au Pell Resources Inc. conducted work in the 3B-Zone from 1987 to 1988 consisting of 1,949 meters
of diamond drilling in eight (8 ) holes; mostly in the area of the 3B -Zone. This drilling intersected the
extension of the 3B-Zone and some of the higher-grade intersections included:
• Au Pell Resources Inc. – Drill hole results from NL assessment report 002E_0656:
o Drill hole PI-89-01:
16.77m of 1.84% Cu from 302.44 to 319.21m depth.
• Including: 10.97m of 2.34% Cu from 302.4 to 313.41m depth.
HM Exploration Corp.
#1450 – 789 West Pender Street
CSE: HM
o Drill hole PI-89-02:
7.63m of 0.90% Cu from 262.80 to 270.43m depth.
• Including: 3.05m of 1.59 % Cu from 262.80 to 265.85m depth.
o Drill hole PI-89-03:
3.05m of 5.03% Zn, 7.58 g/t Ag, and 1.02 g/t Au from 201.83 to 204.44m depth.
5.19m of 0.24% Cu, 4.54% Zn, 17.43 g/t Ag, and 5.00 g/t Au from 206.40 to
211.59m depth.
• Including: 2.29m of 0.39% Cu, 0.14% Pb, 7.60% Zn, 30.72 g/t Ag, and
10.48 g/t Au from 209.30 to 211.59m depth.
o Drill hole PI-89-04:
16.70m of 1.28% Zn and 10.00 g/t Ag from 222.60 to 239.30m depth.
Clifford Jones (Bull Road) Extension Showing
The Clifford Jones (Bull Road) Extension Showing consists of stockworks ‘feeder’ type mineralization
with networks of veinlet and disseminated base metals sulphides including pyrite, chalcopyrite,
galena, silver, gold, and sphalerite. The lithology of the area is highly silica/sericite altered brecciated
rhyolitic host rocks (Epp, 1984). The similarities between this zone and the Bull Road/3B -Zone are
encouraging for further exploration and discovery.
Bouzanne Shaft Showing
Brinex drill hole PI-84-02 was drilled within 100.00m of the Bouzanne S haft as part of the extended
exploration of the Clifford Jones (Bull Road) showing (after Grimley, 1967). While the results from this
drill hole were underwhelming, the local geology in the area consisting of strata-bound volcanogenic
stockwork within mixed mafic/felsic rocks and proximity to the Clifford Jones (Bull Road )/3B-Zone
provide evidence for future follow-up.
Henderson Showing
This showing was discovered in 1885, and two (2) pits and a shaft were excavated on the prospect
(Horsburgh, 1961). In 1968 Brinex drilled two ( 2) holes (BBF-36,37) totaling 220.00 m near the
prospect; sparse mineralization was intersected in hole BBF-36.
This showing consists of a chaotic mix of rounded to sub angular massive sulphide blocks up to
1.00m in diameter and fragments of rhyolite, chert, and basalt in a fine -grained breccia exposure
over a width of approximately 20.00m (Strong , 1974; Bostock , 1988; Tuach, 1990). The breccia,
which is strongly altered and contains disseminated pyrite, has been traced inland approximately
100.00m (Tuach, 1990). This occurrence is interpreted as localized in a small portion of vent. The
sulphide blocks display banding and colloform textures and contain 2.00 to 3.00% copper with minor
sphalerite and galena (Strong, 1974).
The similarities between this zone and the Bull Road/3B-Zone are encouraging for further exploration
and discovery.
HM Exploration Corp.
#1450 – 789 West Pender Street
CSE: HM
Mansfield Showing
The Mansfield showing was discovered by Brinex personne l during their activities in 1966 (Grimley ,
1967). The area was mapped, prospected, trenched, blasted, and sampled. In 1967, drill hole BBF-7
was drilled near the south edge of the showing. The hole (vertical) was drill to a depth of 125 .00m
and intersected sporadic mineralization (Brinex, 1967).
Pilley’s Cove Showing
This showing displays mineralization consisting of chalcopyrite and pyrite in sheeted diabase. It was
reported as “a pit on a 2 -meter quartz vein” (Paltser, 1989). A sample of chalcopyrite bearing float
from the area of the pit was reported to return 4.79% Cu and 12.75 g/t Ag**. This is within the general
area of the Pilley’s Cove copper occurrence where malachite staining was reported on a cliff rock
face above a reported adit near the showing (Epoch Capital Corp – 002E/0643 & 002E/0658).
The Agreement
On March 11, 2026 (the “Effective Date”), the Company entered into the Agreement to acquire the
option (the “Option”) from Unity Resources Inc. and Stephen Stockley Agriculture and Fabrication
Inc. (collectively, the “Optionors”) to earn a hundred percent (100%) interest in the Tenure through a
combination of common share issuances and incurrence of exploration expenditures on the Tenure,
as follows:
(1) Issuing to the Optionors, on a 50-50 basis, an aggregate of 2,700,000 common shares in the
capital of the Company (the “Shares”) at a deemed price of $0.27 per Share as follows:
a. 300,000 Shares on or before the date that is ten (10) business days after the Effective
Date;
b. 450,000 common shares on or before March 9, 2027 (the “First Tranche Issuance”);
c. 450,000 common shares on or before March 9 , 202 8 (the “ Second Tranche
Issuance”);
d. 450,000 common shares on or before March 9, 2029 (the “Third Tranche Issuance”);
e. 450,000 common shares on or before March 9 , 20 30 (the “ Fourth Tranche
Issuance”); and
f. 600,000 common shares on or before March 9, 2031 (the “Fifth Tranche Issuance”);
and
(2) incurring a minimum of $1,500,000 in exploration expenditures on the Tenure as follows:
a. $900,000 of exploration expenditures on or before March 9, 2028; and
b. $1,400,000 of exploration expenditures on or before March 9, 2030.
Pursuant to the Agreement, the First Tranche Shares, Second Tranche Shares, Third Tranche Shares,
Fourth Tranche Shares and Fifth Tranche Shares will be collectively subject to a two (2) year resale
restriction (the “Escrow”) from the applicable date of issuance. During the Option period, each of
the Optionors will also be subject to restrictions on disposition applicable to any Shares they hold,
HM Exploration Corp.
#1450 – 789 West Pender Street
CSE: HM
consisting of giving prior notice to the Company of any proposed disposition of more than 50,000
Shares during any thirty (30) day period and the price, approximating current market, at which the
applicable Optionor is willing to sell them (the “Proposed Sale Price ”) and either: (i) disposing of
such Shares to specific willing investors identified by the Company within a 10-day period at 98% of
the Proposed Sale Price if the purchase is via a private off-market sale or 100% of the Proposed Sale
Price if the purchase is arranged through a stock exchange ; or (ii) in the instance that the Company
fails to identity a willing investor, disposing of such Shares at a price of not less than 65% of the
Proposed Sale Price (the “Resale Rules ”). Pursuant to the Agreement, should the Company
complete a financing at a per -Share price lower than that of its immediately preceding financing
round during the Option period, the Escrow and Resale Rules shall be of no further force or effect and
any resale restrictions imposed under the Escrow shall be removed by the Company.
The Optionors will retain a three (3%) percent net smelter returns royalty (the “NSR”) on the Tenure,
subject to the Company’s buyback right of one point five percent (1.5%) of the NSR for C$2,000,000.
All securities issued in connection with the Agreement will be subject to a statutory hold period of
four months and one day. No finders' fees were paid on this arm's length Agreement.
Bonus Agreement
In connection with the Agreement, the Company also concurrently entered into a Bonus Agreement
with the Optionors (the “Bonus Agreement”). Pursuant to the Bonus Agreement, i n the event that
the Company enters into an agreement in respect of an arm’s length transaction on the Tenure during
the Option period under the Agreement (a “ Subsequent Sale ”), the Optionor s will be entitled to
receive, on a 50- 50 basis , additional consideration in aggregate equal to five percent (5%) (the
“Consideration Entitlement”) of the total cash and non -cash consideration payable to the
Company under the Subsequent Sale (the “ Subsequent Sale Consideration”), paid within thirty
days of the Company’s receipt of the applicable portion of the Consideration Entitlement under the
Agreement. In the event that at least sixty-five percent (65%) of the Subsequent Sale Consideration
is returned to shareholders of the Company as a dividend, ret urn of capital or other pro rata
distribution, the Company will be relieved of its obligations and will not be obligated to pay the
Consideration Entitlement.
Pursuant to the Bonus Agreement, the Company shall also pay the Optionor s an aggregate bonus
payment(s) of C$5,000,000 in cash (the “Mineral Resource Bonus Payment”) in the event,
subsequent to the exercise of the Option by the Company, a cumulative mineral reserve and mineral
resource of not less than 2,000,000 AuEq ounces is established, updated or expanded on the Tenure,
in compliance with NI 43 -101, in any one or more mineral resource or mineral reserve category
supported by a Feasibility Study and with a Net Present Value of not less than C$1,000,000,000. The
Mineral Resource Bonus Payment will be payable by the Company to the Optionors, on a 50-50 basis,
within thirty (30) business days of the date of filing of the Technical Report in support of such
Feasibility Study or other public disclosure under applicable securities laws of the results of such
Feasibility Study, whichever is earlier.
HM Exploration Corp.
#1450 – 789 West Pender Street
CSE: HM
References
British Newfoundland Exploration Limited 1968: Diamond drilling data from Pilley’s Island, Newfoundland. British Newfoundland Exploration Limited
Unpublished report [GSB# 002E/12/0168]
Bostock, H.H. 1988: Geology and petrochemistry of the Ordovician volcano-plutonic Roberts Arm Group, Notre Dame Bay, Newfoundland. Geological Survey
of Canada Bulletin 369, 84 pages, with 1:50,000 colour map.
Consolidated Morrison Exploration Company 1979: The Bull Road showing, Pilley’s Island, Nfld. Consolidated Morrison Exploration Company unpublished
report. [NDNR 2E/12]
Dunning, G.R., Kean, B.F ., Thurlow, J.G. and Swinden, H.S. 1987: Geochronology of the Buchans, Roberts Arm and Victoria Lake Groups and Mansfield Cove
Complex, Newfoundland. Canadian Journal of Earth Sciences, Volume 24, pages 1175-1184.
Epp, W.R. 1984: Brinco/Getty Joint Venture Dawes Pond Tenure Pilley’s Island 1984 diamond drilling report Blast Furnace Option, C.B. 2400, Lic. 2240,
Newfoundland. Brinco Mining unpublished report. [NDNR 2E/524]
Espenshade, G.H., 1937. Geology and mineral deposits of the Pilley's Island area, Newfoundland. Newfoundland Department of Natural Resources, Bulletin
6, pp. 1-56.
Grimley, P .H. 1968: Geological and other notes on Pilley’s Island. Brinex unpublished report. [NDNR 2E12/274]
Harris, A. 1976: Consolidated Morrison Exploration Company; The Bull Road showing, Pilley’s Island, Nfld. Consolidated Morrison Exploration Company
unpublished report. [NDNR 2E/12/0388]
Horsburgh, J R 1967: The geology of the Pilleys Island prospect, Notre Dame Bay, Newfoundland. BSc thesis, Royal School Of Mines. 170 pages. [GSB#
002E/12/0265]
Hum, P . 1983: Report on the 1983 diamond drilling Pilley’s Island Blast Furnace Option and C.B. 2400, Licence 2240, Newfoundland. Brinco Mining
Document No. G83005. [NDNR 2E/487]
Kerr, A. (1996) New perspectives on the stratigraphy, volcanology, and structure of the island-arc volcanic rocks in the Ordovician Roberts Arm Group, Notre
Dame Bay. In Current Research, Newfoundland Department of Natural Resources, Geological Survey, Report 96-1, pages 283-310.
Paltser, Ulo, 1989. Geological and geochemical surveys in the Sunday Cove Tickle area, north central Newfoundland, C.B. 5746, Lic. 3303, NTS 2E/12, by
James Wade Engineering for Epoch Capital Corp. [2E/12/0648]
Strong, D F 1974: Geology of the Pilleys Island area. In Ore deposits and their tectonic setting in the Central Mobile Belt of northeast Newfoundland.
Geological Association of Canada-Mineralogical Association of Canada, Field Trip Manual, No. A-3 and B-3, pages 26-34. [GSB# NFLD/0782]
Thurlow, J.G 1996: Geology of a newly discovered cluster of blind massive sulfide deposits, Pilley’s Island, central Newfoundland. In Current Research,
Newfoundland Department of Natural Resources, Geological Survey, Report 96-1, pages 181- 189.
Tuach, J. 1989: Diamond drilling at Pilley’s Island, Newfoundland January – February 1989. Licence 2278 and Fee Simple Grant Vol. 1, Fol. 28 (NTS 2E/12). Au
Pell Resources Inc. unpublished report. [ NDNR 2E/656]
Walker, W B G 1960: Report on copper-pyrite of Pilleys Island, Newfoundland. British Newfoundland Exploration Limited Unpublished report [GSB#
002E/12/0242]
National Instrument 43-101 Disclosure
Nicholas Rodway, P.Geo, (Licence# 46541) (Permit to Practice# 100359) is CEO and Director of the
Company, and a qualified person as defined by National Instrument 43 -101 - Standards of
Disclosure for Mineral Projects. Mr. Rodway has reviewed and approved the technical content in this
release.
About HM Exploration Corp.
The Company is currently advancing the Devil’s Den Project, an exploration- stage property
consisting of two contiguous claims totaling approximately 3,200 hectares on Vancouver Island,
British Columbia. Exploration work completed in 2022 established four geochemical grids to identify
possible buried mineralization, uncovering multiple high-grade occurrences including copper values
up to 4.68% at surface (Devil’s Den NI 43-101, Nov 2022). Phase One exploration completed in 2025
included high-resolution UAV magnetic surveying and a lithogeochemical program, which identified
new structural targets and zones of elevated copper, zinc, and nickel geochemistry. The p roject
hosts multiple historical adits with high -grade surface occurrences that remain undrilled. HM
believes a lack of adequate modern exploration has left significant discovery potential.
In addition, the Company has recently expanded its portfolio with the acquisition of the Lewis
Pilley’s Project in Newfoundland, a 41.25 km² contiguous land package hosting a cluster of