FORM 7
MONTHLY PROGRESS REPORT
Name of Listed Issuer: First Energy Metals Limited (the “Issuer”).
Trading Symbol: FE
Number of Outstanding Listed Securities: 54,426,831 Date: June 05, 2021 This Monthly Progress Report must be posted before the opening of trading on the fifth trading day of each month. This report is not intended to replace the Issuer’s obligation to separately report material information forthwith upon the information becoming known to management or to post the forms required by Exchange Policies. If material information became known and was reported during the preceding month to which this report relates, this report should refer to the material information, the news release date and the posting date on the Exchange website. This report is intended to keep investors and the market informed of the Issuer’s ongoing business and management activities that occurred during the preceding month. Do not discuss goals or future plans unless they have crystallized to the point that they are "material information" as defined in the Policies. The discussion in this report must be factual, balanced and non-promotional. General Instructions Prepare this Monthly Progress Report using the format set out below. The sequence of questions must not be altered nor should questions be omitted or left unanswered. The answers to the items must be in narrative form. State when the answer to any item is negative or not applicable to the Issuer. The title to each item must precede the answer.
The term “Issuer” includes the Issuer and any of its subsidiaries.
Terms used and not defined in this form are defined or interpreted in Policy 1 – Interpretation and General Provisions.
Report on Business
Provide a general overview and discussion of the development of the Issuer’s business and operations over the previous month. Where the Issuer was inactive disclose this fact.
First Energy continues with its exploration plans on the Augustus property along with evaluating additional Lithium exploration targets in North and South America. Exploration result details provided below include both surface samples and drill results.
________________________________________________________________ Provide a general overview and discussion of the activities of management.
First Energy has received exploration results from its exploration program on the Augustus property in Quebec, results to date are summarized below.
FIRST ENERGY METALS CUTS 1.20 PERCENT LITHIUM OXIDE OVER 4 METERS IN CHANNEL SAMPLES FROM AUGUSTUS LITHIUM PROPERTY First Energy Metals Ltd. has released more assay results from the channel sampling program at its Augustus lithium property in Quebec, Canada. The channel 21-2E samples at the Beluga pegmatite of the Canadian lithium prospect cut a 31-metre-wide section with an average of 0.37 per cent lithium oxide (Li2O), which includes four metres of spodumene pegmatite at 1.20 per cent Li2O. The pegmatite is still continuous along width to the north where three individual samples each one m width assayed 0.06 per cent to 2.25 per cent Li2O. Iron content in samples is less than 1 per cent, and there are anomalous values of other rare elements such as niobium and tantalum. Channel 21-2E -- highlights of assays (for 31 m wide section, see the associated table for details): Lithium oxide (Li2O) values are in the range of 0.03 per cent to 2.13 per cent with an average of 0.34 per cent Li2O, including a section with 1.20 per cent Li2O over four m.
Lithium (Li) values are in the range of 120 parts per million to 9,999 ppm (0.99 per cent) with an average of 1,724.81 ppm, including a four m section having an average of 5,602.25 ppm (0.56 per cent Li).
Beryllium (Be) values are in the range of 105 ppm to 552 ppm with an average of 260.81 ppm.
Niobium (Nb) is in the range of 33.0 ppm to 136.9 ppm with an average of 74.88 ppm.
Tantalum (Ta) is in the range of 18.9 ppm to 128 ppm with an average of 62.16 ppm.
Iron (Fe) is in the range of 0.33 per cent to 0.88 per cent with an average of 0.53 per cent.
Cesium (Cs) is in the range of 24.5 ppm to 120 ppm with an average of 73.21 ppm.
Rubidium (Rb) is in the range of 403 ppm to 3,480 ppm with an average of 1,936 ppm.
The ground exploration work has been continuous since February, 2021, and its purpose is to locate and confirm historical lithium pegmatite occurrences on two lithium prospects (Augustus and Canadian lithium prospects), to locate historical drill holes on the property completed in 1950s, and to support the continuing drill program. The pegmatite outcrops are exposed using an excavator. The field exploration is continuous, and more channel sampling is being carried out on the exposed outcrops. The surface channel sampling will also help in resource estimation to tie up potential lithium pegmatite zones intercepted in drill holes to the surface. Each channel sample from this work represents a one-metre-long, five-centimetre-wide and three-to-five-centimetre-deep cut in bedrock. The samples were bagged and tagged using best practices and were delivered to Activation Laboratories, Ancaster, Ont., for sample preparation and analyses using laboratory code Ultratrace 7 as summarized below. ActLabs is an independent commercial, accredited International Organization for Standardization-certified laboratory. Code Ultratrace 7 -- peroxide fusion -- ICP (inductively coupled plasma) and ICP/MS (inductively coupled plasma mass spectrometry) Samples are fused with sodium peroxide in a zirconium crucible. The fused sample is acidified with concentrated nitric and hydrochloric acids. The resulting solutions are diluted and then measured by ICP-OES (inductively coupled plasma optical emission spectroscopy) and ICP-MS. All metals are solubilized.
ICP-MS
Fused samples are diluted and analyzed by Agilent 7900 ICP-MS. Calibration is performed using five synthetic calibration standards. A set of (10 to 20) fused certified reference materials is run with every batch of samples for calibration and quality control. Fused duplicates are run every 10 samples.
ICP-OES
Samples are analyzed with a minimum of 10 certified reference materials for the required analytes, all prepared by sodium peroxide fusion. Every 10th sample is prepared and analyzed in duplicate; a blank is prepared every 30 samples and analyzed. Samples are analyzed using a Varian 735ES ICP and internal standards are used as part of the standard operating procedure. Afzaal Pirzada, PGeo, geological consultant of the company and a qualified person for the purposes of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release FIRST ENERGY METALS DRILLS 1.35 PERCENT LITHIUM OXIDE OVER 2 METERS AT AUGUSTUS LITHIUM PROPERTY First Energy Metals Ltd. has released results of a drill hole at its Augustus lithium property in Quebec, Canada. Drill hole LC21-003 intersected a six-metre-wide zone with 0.62 per cent lithium oxide (Li2O) at 45 metres of depth including a two-metre-wide intersection with 1.35 per cent Li2O at 48 m depth. A second two-metre-wide pegmatite intersection assayed 0.63 per cent Li2O at 73 m depth. Drill hole LC21-03 was drilled at location: 284956E, 5368263N (NAD (North American datum) 1983 UTM (Universal Transverse Mercator) zone 18N), azimuth 53.5 degrees, dip 49.4 degrees with a total drilled depth of 147 m. All intersections reported are based on drilled width and have not been converted to true width.
Gurminder Sangha, chief executive officer of First Energy Metals, stated that: "We are very pleased that drill results have started to arrive. After fieldwork mapping and sampling, this is the second step to verify historical exploration work. The company is looking forward to receiving more drilling and channel sampling results to keep investors aware of the progress being made on the property." The drill program is based on historical exploration data and the company's surface trenching and sampling program, which is currently under way. Several historical drill hole collars were also located on the property, which help in location and orientation of drill holes for the current drill program. The drill program commenced on April 5 at the property by Forage Hebert Inc. of Amos, Que., which is contracted for the drill program. A B-20 drill rig is deployed for this work, which has a capacity to drill up to 1,000-metre-deep holes. A core shack has been built near the property for drill core logging, sample preparation and storage. To date, a total of 13 drill holes with a cumulative core drilling of 1,770 m have been completed on the property. The drill core is being logged and sampled at the core shack using a rock saw. For quality control and quality assurance (QA/QC), field duplicates and blanks are being inserted at an industry-standard interval. The samples were bagged and tagged using best practices and were delivered to Activation Laboratories (ActLabs), Ancaster, Ont., for sample preparation and analyses using laboratory code Ultratrace 7 and sodium peroxide fusion (Na2O2) as summarized below. ActLabs is an independent, commercial, accredited, International Organization for Standardization-certified laboratory. Table 1: Drill Hole LC21-003 Sample assays highlights Analyte Symbol Li Li2O Unit Symbol Depth Depth Total % % Detection Limit from to width 0.01 0.01 Analysis Method m m m FUS-Na2O2 FUS-Na2O2 95871 16.6 0.4 0.06 0.13 95873 0.01 0.02 95874 0.02 0.04 95879 0.07 0.15 95880 0.06 0.13 95881 0.01 0.02 95883 0.01 0.02 95884 0.01 0.02 95885 0.02 0.04 95886 0.02 0.04 95887 0.01 0.02 95891 0.01 0.02 95894 0.02 0.04 95895 0.01 0.02 Start 95896 0.07 0.15 95897 0.23 0.49 95898 0.06 0.13 95899 0.84 1.81 95901 0.42 0.90 Including 1.35 95902 0.1 0.22 End 0.29 0.62 95903 0.02 0.04 95904 0.01 0.02 95907 0.01 0.02 95910 0.03 0.06 95911 0.01 0.02 95913 0.02 0.04 95914 0.01 0.02 95918 0.01 0.02 95921 0.02 0.04 95922 0.02 0.04 95927 0.18 0.39 95928 0.41 0.88 FIRST ENERGY METALS DRILLS 1.11 PERCENT LITHIUM OXIDE OVER 10 METERS AT AUGUSTUS LITHIUM PROPERTY First Energy Metals Ltd. has released the results of drill hole LC21-12 at its Augustus lithium property in Quebec, Canada. The drill hole intersected a 10-metre-wide zone with 1.11 per cent lithium oxide (Li2O) at 110 metres of depth. There are anomalous values of other rare metals as well including average values of niobium (Nb) of 99.78 parts per million (ppm), rubidium (Rb) of 1,609.7 ppm, tantalum (Ta) of 65.16 ppm, beryllium (Be) of 200.7 ppm and cesium (Cs) of 60.55 ppm. The average value of iron (Fe) is 0.494 per cent. Drill hole LC21-12 is the first drill hole at the Augustus lithium prospect on the property. It was drilled at location 287126E, 5367662N (North American Datum 1983 Universal Transverse Mercator zone 18N), at of azimuth 40.5 degrees and dip of 44.5 degrees, with a total drilled depth of 361 metres. All intersections reported are based on drilled width and have not been converted to the true width. Gurminder Sangha, chief executive officer of First Energy Metals, stated that: "The first drill hole at Augustus prospect exceeded our expectations in terms of width of the lithium zone, which was reported over six metres in historical drill hole near this location. We are very excited about having a wide lithium pegmatite near surface."
The drill program is based on the historical exploration data and the company's surface trenching and sampling program, which is currently under way. Several historical drill hole collars were also located on the property, which helped in location and orientation of drill holes for the current program. The drill program commenced on April 5 at the property by Forage Hebert Inc. of Amos, Que., which is contracted for the drill program. A B-20 drill rig is deployed for this work, which has a capacity to drill up to 1,000-metre-deep holes. A core shack has been built near the property for drill core logging, sample preparation and storage. To date a total of 14 drill holes with a cumulative core drilling of 2,004 m have been completed on the property. The drill core is being logged and sampled at the core shack using a rock saw. For quality control and quality assurance (QA/QC), field duplicates and blanks are being inserted at an industry-standard interval. The samples were bagged and tagged using best practices and were delivered to Activation Laboratories (ActLabs), Ancaster, Ont., for sample preparation and analyses using laboratory code Ultratrace 7 and sodium peroxide fusion (Na2O2) as summarized below. ActLabs is an independent commercial, accredited International Organization for Standardization-certified laboratory. Table 1: Drill Hole LC21-012 Sample assays highlights Analyte Symbol From To Total Thickness Li Li2O Mn Nb Rb Ta Be Cs Fe Unit Symbol ppm % ppm ppm ppm ppm ppm ppm % Detection Limit 2.4 0.4 0.2 0.1 0.05 Analysis Method m m m FUS-MS-Na2O2 201704 109.5 0.5 1610 0.35 57.4 1330 24.2 2.74 201705 2210 0.48 98.7 1690 57.5 51.8 0.49 201706 8020 1.72 77.9 1790 39.5 65.2 0.62 201707 2470 0.53 126.8 1290 51.1 0.45 201708 5050 1.09 102.6 2170 58.2 0.55 201709 7280 1.57 78.1 1580 84.4 82.8 0.47 201711 3710 0.80 158.7 76.2 34.3 0.49 201712 4700 1.01 1030 2000 56.1 68.3 0.52 201713 7820 1.68 1240 1430 65.8 63.4 0.48 201714 7460 1.60 1480 80.1 1700 89.2 73.9 0.43 201715 2850 0.61 1090 107.9 1590 73.6 58.8 0.44 Total width /Average Assays 5,157 1.11 991.9 99.78 1,609.7 65.16 200.7 60.55 0.494 201716 1400 0.30 76.2 1730 67.1 63.4 0.33 201717 1760 0.38 1670 80.8 1140 96.1 49.4 0.33 21718 0.5 0.05 1410 76.6 1260 52.7 0.31 Note: A standard conversion factor of 2.15 was used to report Li to Li2O values All intersections reported are based on drilled width and have not been converted to the true width.
The above exploration results used Code Ultratrace 7 – Peroxide Fusion – ICP and ICP/MS Samples are fused with sodium peroxide in a Zirconium crucible. The fused sample is acidified with concentrated nitric and hydrochloric acids. The resulting solutions are diluted and then measured by ICP-OES and ICP-MS. All metals are solubilized.
ICP-MS
Fused samples are diluted and analyzed by Agilent 7900 ICP-MS. Calibration is performed using five synthetic calibration standards. A set of (10-20) fused certified reference material is run with every batch of samples for calibration and quality control. Fused duplicates are run every 10 samples.
ICP-OES
Samples are analyzed with a minimum of 10 certified reference materials for the required analytes, all prepared by sodium peroxide fusion. Every 10th sample is prepared and analyzed in duplicate; a blank is prepared every 30 samples and analyzed. Samples are analyzed using a Varian 735ES ICP and internal standards are used as part of the standard operating procedure. Source: https://actlabs.com/geochemistry/lithogeochemistry-and-whole-rock-analysis/peroxide-total-fusion/Further details with exploration result tables can be found under First Energy's SEDAR profile or on the Company website www.firstenergymetals.com Describe and provide details of any new products or services developed or offered. For resource companies, provide details of new drilling, exploration or production programs and acquisitions of any new properties and attach any mineral or oil and gas or other reports required under Ontario securities law.
First Energy will continue to focus its efforts on the most prospective properties held in its portfolio, subject to exploration success, particularly the Augustus Lithium Property and Titan Gold Property.
Describe and provide details of any products or services that were discontinued. For resource companies, provide details of any drilling, exploration or production programs that have been amended or abandoned.
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Describe any acquisitions by the Issuer or dispositions of the Issuer’s assets that occurred during the preceding month. Provide details of the nature of the assets acquired or disposed of and provide details of the consideration paid or payable together with a schedule of payments if applicable, and of any valuation. State how the consideration was determined and whether the acquisition was from or the disposition was to a Related Person of the Issuer and provide details of the relationship. Describe the acquisition of new customers or loss of customers.
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Report on any employee hirings, terminations or lay-offs with details of anticipated length of lay-offs.
Report on any labour disputes and resolutions of those disputes if applicable.
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Provide details of any indebtedness incurred or repaid by the Issuer together with the terms of such indebtedness.
The Issuer incurs trade payables in the normal course of its business. For further details, see the Issuer’s periodic financial statements and accompanying management discussion and analysis filed on SEDAR under the Issuer’s SEDAR profile at www.SEDAR.com.
Provide details of any securities issued and options or warrants granted.
Security
Number Issued
Details of Issuance
Use of Proceeds (1) Common Shares 56,000 Issuance related to Warrant Exercise @ $ 0.25 cents per share General Working Capital Stock Option Grant 850,000 Stock Options with an exercise price of $0.35 cents valid for 5 years.
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State aggregate proceeds and intended allocation of proceeds.
The Issuer intends to allocate the aggregate proceeds of $14,000 to allocate towards general working capital purposes_.
Provide details of any loans to or by Related Persons.
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Provide details of any changes in directors, officers or committee members.
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Discuss any trends which are likely to impact the Issuer including trends in the Issuer’s market(s) or political/regulatory trends.
The Issuer has not identified any trends which are likely to impact the Issuer.
Certificate Of Compliance
The undersigned hereby certifies that: The undersigned is a director and/or senior officer of the Issuer and has been duly authorized by a resolution of the board of directors of the Issuer to sign this Certificate of Compliance.
To the best of the undersigned’s knowledge and belief, as of the date hereof there is no material information concerning the Issuer which has not been publicly disclosed.
The undersigned hereby certifies to the Exchange that, to the best of the undersigned’s knowledge and belief, the Issuer is in compliance with the requirements of applicable securities legislation (as such term is defined in National Instrument 14-101) and all Exchange Requirements (as defined in CNSX Policy 1).
To the best of the undersigned’s knowledge and belief, all of the information in this Form 7 Monthly Progress Report is true.
Dated June 5th, 2021.
Gurminder Sangha
Name of Director or Senior Officer “Gurminder Sangha” Signature President Official Capacity Issuer Details Name of Issuer First Energy Metals Limited For Month End May 31, 2021 Date of Report YY/MM/D 21/06/05 Issuer Address 2421 – 1055 West Georgia Street City/Province/Postal Code Vancouver, BC V6E 3P3 Issuer Fax No.
( )N/A Issuer Telephone No.
(604) 375-6005 Contact Name Gurminder Sangha Contact Position President & CEO Contact Telephone No.
(604) 375-6005 Contact Email Address [email protected] Web Site Address https://www.firstenergymetals.com