HM Exploration Acquires High Grade Copper VMS Project in Newfoundland

VANCOUVER, British Columbia, Sept. 29, 2025 (GLOBE NEWSWIRE) -- HM Exploration Corp. (“HM Exploration” or “HM” or the “Company”) (CSE:HM) is pleased to announce that it has entered into an option agreement (the “Agreement”) dated September 25, 2025 with Great Atlantic Resources Corp. (TSX-V:GR) (the “Optionor”) to acquire a 100% interest in the the Pilley’s Island Copper Project (the “Project”), located in Newfoundland, Canada (the “Acquisition”).

Highlights:

• Multiple VMS-style targets identified, including the Clifford Jones / Fragmental Zones, which returned channel sample grades up to 15.40% Zn, 6.60% Pb, 4.66% Cu, and 111.50 g/t Ag over 1.05m and grab samples up to 40.8% Zn, 20.0% Pb, 8.36% Cu, 148.1 g/t Ag and 2.28 g/t Au.
• Historic drill intercepts include:
  • 82.47 - 85.21m: 2.74m of 6.40% Cu, 0.46% Zn, 11.28 g/t Ag, 0.85 g/t Au (PI-89-05)
    • Including: 82.47 - 84.54m: 2.07m of 7.79% Cu, 13.40 g/t Ag, 1.05 g/t Au
  • 50.75 – 53.12m: 2.40 m of 0.94% Cu, 12.45% Zn, 3.17 g/t Au, 5.51% Pb (Hole 42)
  • 5.49m of 1.40% Cu, 0.76% Pb, 7.32% Zn, 20.53 g/t Ag (BBF-54)
  • 5.33m of 1.03% Cu, 0.19% Pb, 1.79% Zn, 6.84 g/t Ag, 0.31 g/t Au (BBF-22)
• Excellent infrastructure and access: Project is road-accessible located ~25 km east of Springdale, within an established mining friendly district that also hosts the Buchans, Ming, and Rambler past producing mines. The Project is situated ~150 kilometers from the Pine Cove Mill and Port by way of major roads.
• The Project hosts the historic Pilley’s Island Mine, which produced ~450,000 tonnes of ore in the late 1800s, and carries reported (non-NI 43-101 compliant) reserves of 1.16 Mt of 1.23% Cu* (Grimley, 1968).
• Historic work mainly targeted shallow showings, with deeper and along-strike potential left largely untested. Geophysical anomalies were recognized but never systematically explored with modern methods.
• HM plans to continue to compile the over 100 years of inherited geological data to establish a systematic exploration program to begin late 2025.
  

^{* 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.}

Nicholas Rodway, P.Geo., President & CEO of HM Exploration, commented:

"With the Pilley’s Island Project now in hand, we are stepping into a high-grade VMS copper camp with exceptional upside potential. The Project benefits from a strong mining history, multimillion dollars of exploration work inherited, excellent infrastructure, and nearby producing operations—factors that position HM Exploration to unlock meaningful value for shareholders."

About the Project

The Project consists of eight (8) mineral licenses encompassing a total land area of 12.25km² and is located in Notre Dame Bay, Newfoundland – Canada. The Project 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 tonnes of massive pyritic ore from the Pilley’s Island Mine – Old Mines (after Kerr, 1996).

The Project is road accessible and situated ~25 kilometers east of the town of Springdale, approximately 210 kilometers from the town of Gander and ~150 kilometers from the Pine Cove Mill and Port by way of major roads.

The Pilley’s Island Project hosts a cluster of Volcanogenic Massive Sulfide (VMS) systems and prospects with demonstrated high-grade Zn-Pb-Cu-Ag 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. Further systematic exploration, particularly at depth and along strike of the Clifford Jones/Fragmental Zones is currently being planned.

Many historic programs focused on shallow high-grade showings; deeper targets were only sporadically tested (Brinex, 1967). The Bull Road and Fragmental Zones were not systematically drilled along strike or down plunge (Hum, 1983). Geophysical anomalies adjacent to known zones were not followed up with drilling (Altius, 2001). Jasper Zone intersections (deep sulfides) were recognized but not fully explored with modern vectoring techniques (Altius/Inmet, 2003).

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.

Geology & Mineralization

The Project is located within the Notre Dame Subzone of the Dunnage Tectonostratigraphic Zone. Of note, most of the Project 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 low 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).

Volcanogenic Massive Sulfide deposits are a globally significant source of copper, zinc, lead, silver, and gold. The Project’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 property.

From north to south the Project 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 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).

Figure 2: Property map of the Pilley’s Island project displaying historical showings/zones located on the property.
** 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

Bull Road – Clifford Jones Zone / Fragmental Showing

The Bull Road – Clifford Jones Zone / Fragmental showings are a re-sedimented, polylithic breccia containing abundant high-grade Zn-Pb-Cu sulfide clasts similar to the breccia ores at Buchan’s. The showings, are significant and suggests the potential for an ore-grade deposit source (after Consolidated Morrison Ltd., 1979).

• Great Atlantic – Dec. 14, 2017 Press Release:
  • Trenching conducted by Great Atlantic Resources Corp. and Unity Resources Inc. exposed significant sulfide mineralization trending northwest-southeast over a length of approximately 200.00 meters with mineralization varying in width between 1.00 – 7.00 meters.
  • The best results from channel sampling (over 1.05 meters) from the trench include:
    • 1.05 meters returned grades of 15.40% Zn, 6.60% Pb, 4.66% Cu, 111.50 g/t Ag
    • 0.70 meters returned grades of 17.30% Zn, 0.10% Pb, 2.97% Cu, 31.20 g/t Ag
  • The best results from bedrock grab samples from the trench returned up to 40.8% Zn, 20.0% Pb, 8.36% Cu, 148.1 g/t Ag, 2.28 g/t Au.
• Historic Exploration at the Bull Road – Clifford Jones Zone / Fragmental Showing:
  • Brinex – Results taken from NL assessment report 002E_1871
    • Drill hole BBF-27
      • 3.05m of 0.93% Cu, 0.89% Pb, 3.51% Zn, 27.68 g/t Ag**
    • Drill hole BBF-22
      • 5.33m of 1.03% Cu, 0.19% Pb, 1.79% Zn, 6.84 g/t Ag, 0.31 g/t Au**
    • Drill hole BBF-54
      • 5.49m of 1.40% Cu, 0.76% Pb, 7.32% Zn, 20.53 g/t Ag**
    • Drill hole BBF-58
      • 2.44m of 1.10% Cu, 0.45% Pb, 3.40% Zn, 51.63 g/t Ag**
    • Drill hole BBF-60
      • 5.33m of 0.90% Cu, 0.06% Pb, 0.28% Zn, 4.98 g/t Ag**
  • Brinco-Getty – Drill hole results from NL assessment report 002E_0487
    • Drill hole PI-83-01
      • 9.09 – 17.25m: 7.35m of 0.66% Cu, 0.51% Pb, 3.41% Zn, 10.57 g/t Ag**
      • 20.53 – 22.77m: 2.24m of 0.66% Cu, 0.10% Pb, 1.22% Zn, 5.91 g/t Ag**
      • 26.20 – 27.72m: 1.52m of 0.69% Cu, 0.10% Pb, 1.24% Zn, 7.46 g/t Ag**
    • Drill hole PI-83-07
      • 47.24 – 49.73m: 2.49m of 0.70% Cu, 0.22% Pb, 0.74% Zn, 6.53 g/t Ag**
        
  • ^{** Historic intercept lengths have been converted from feet to meters and Ag/Au results have been converted from oz/t to g/t.}
  • Indicated reserve estimate of 22,377 tonnes grading at 2.0% Cu, 0.52% Pb, 5.02% Zn, 0.62 oz/t Ag, 0.008 oz/t Au* based on four (4) Brinex holes drilled in 1967 (Harris, 1976).
    

3B – Zone

• Massive sulfide zone containing Cu, Zn, Ag, Au (after Brinex, 1967)
• Au Pell Resources – Drill hole results from NL assessment report 002E_0656
  • Drill hole PI-89-05
    • 82.47 - 85.21m: 2.74m of 6.40% Cu, 0.46% Zn, 11.28 g/t Ag, 0.85 g/t Au
      • Including: 82.47 - 84.54m: 2.07m of 7.79% Cu, 13.40 g/t Ag, 1.05 g/t Au
        

Hole 42

• Historic drill hole completed by Pilley’s Island Copper Pyrite Ltd.
  • Zn-Au rich massive sulfide intersection returned intersection (50.75 – 53.12m) over 2.40 meters (8.00 ft) of 0.94 % Cu, 12.45% Zn, 3.17 g/t Au, 5.51% Pb** (Tuach, 1989)

Old Mines

• The Bumble Bee Bight area hosts the “Old Mine” as well as several other fault and strata-bound VMS facies.
• Historic Reserves – From Newfoundland Geoscience Atlas
  • Past Production:
    • 1891 – 1899 = 300,000 tonnes
    • 1901 – 1908 = 225,000 tonnes
  • Proven reserves = 1,159,000 tonnes at 1.23 % Cu* (Grimley, 1968)
  • ^{*The Project hosts the historic Pilley’s Island Mine, which operated during the 1890s and early 1900s. The Newfoundland and Labrador Department of Natural Resources reports historic estimated proven reserves of 1.159 million tonnes grading 1.23% Cu (referencing Grimley, 1968 as the source) in their Mineral Occurrence Database. These historical estimates of reserves are not reliable. The historical estimates are only relevant to the extent of identifying an area on the Project for research and possible future exploration. The key assumptions, parameters, and methods used to prepare the historical estimates are not known. A qualified person has not done sufficient work to classify the historical estimates as current resources or current reserves. A qualified person would need to complete sufficient work following CIM Best Practice Guidelines to upgrade or verify the historical estimates as current mineral resources or mineral reserves. This would almost certainly require additional exploration in the way of diamond drilling, trenching and / or underground work and corresponding sampling all of which must follow CIM Exploration Best Practice Guidelines. HM Exploration does not treat the historical estimates for the historic Pilley’s Island Mine as current mineral resources or mineral reserves. The historical ‘proven reserves’ reported by Grimley (1968) do not conform to the current CIM Definition Standards for a ‘Proven Mineral Reserve,’ and should not be treated as such.}

Spencer’s Dock

• Phelps Dodge – Drill hole results from NL assessment report 002E_2014
  • PI-221-07
    • 0.47m of 0.37% Zn, 0.29% Pb
  • PI-221-12
    • 0.30m of 1.64% Cu
    • 1.66m of 0.27% Zn
  • PI-221-13
    • 1.54m of 0.64% Cu
    • 1.90m of 0.66% Cu
    • 0.40m of 1.94% Zn

The Agreement

On September 25, 2025, the Company entered into the Agreement to acquire the option from the Optionor to earn a hundred percent (100%) interest in the Project through a combination of common share issuances and incurrence of exploration expenditures on the Property, as follows:

(1)   Issuing to the Optionor an aggregate of 6,300,000 common shares in the capital of the Company (“Shares”) at a deemed price of $0.19 per Share as follows:

1.  700,000 Shares on or before the date that is ten (10) business days after approval of the Canadian Securities Exchange of the Agreement (the “Effective Date”);
2. 1,050,000 common shares on or before September 23, 2026 (the “First Tranche Issuance”);
   
3. 1,050,000 common shares on or before September 23, 2027 (the “Second Tranche Issuance”);
4. 1,050,000 common shares on or before September 23, 2028 (the “Third Tranche Issuance”);
   
5. 1,050,000 common shares on or before September 23, 2029 (the “Fourth Tranche Issuance”); and
6. 1,400,000 common shares on or before September 23, 2030 (the “Fifth Tranche Issuance”); and

(2)   incurring a minimum of $3,500,000 in exploration expenditures on the Project as follows:

1. $2,100,000 of Exploration Expenditures on or before September 15, 2028; and
2.  $1,400,000 of Exploration Expenditures on or before September 15, 2030.

Pursuant to the Agreement, the First Tranche Shares, Second Tranche Shares, Third Tranche Shares, Fourth Tranche Shares and Fifth Tranche Shares will all be subject to escrow released over a 24-month period. All securities issued in connection with the Agreement will be subject to a statutory hold period of four months and one day. The Project is subject to an existing three percent (3%) net smelter returns royalty (the “Existing NSR”), subject to the Company’s buyback right of two percent (2%) of the Existing NSR for C$1,000,000 payable to Unity (defined below). The Company has also agreed to grant an additional one percent (1%) net smelter returns royalty on the Project to the Optionor. No finders' fees were paid on this arm's length Agreement.

The Project is originally subject to the terms of an option agreement dated May 1, 2017 (the “Original Agreement”) between the Optionor and Unity Resources Inc. (“Unity”) which granted the Existing NSR. Under the terms of the Original Agreement, an annual advance royalty payment of C$10,000 is payable by the Optionor to Unity for a period of ten (10) years, which payment obligation the Company has agreed to assume for the duration of the Agreement.

Bonus Agreement

In the event the Company enters into an agreement in respect of an arm’s length transaction on the Project during the option period under the Agreement (a “Subsequent Sale”), the Optionor and Gary Lewis will be entitled to receive additional consideration in aggregate equal to five percent (5%) of the total cash and non-cash consideration payable to Company under the Subsequent Sale (the “Consideration Entitlement”), paid within five years of the Effective Date and in accordance with the following the breakdown (the “Pro Rata Breakdown”): (i) the Optionor is entitled to seventy percent (70%) of the Consideration Entitlement; and (ii) Gary Lewis is entitled to thirty percent (30%) of the Consideration Entitlement. In the event a majority of the Consideration Entitlement is returned to shareholders of the Company as a dividend, return 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.

The Company shall also pay the Optionor and Gary Lewis 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 of AuEq is established, updated or expanded on the Project, 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 Optionor and Gary Lewis in accordance with the Pro Rata Breakdown within thirty (30) business days of the date of filing of the Technical Report in support of such Feasibility Study.

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.
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]
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.
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]}

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.

HM Exploration Corp. (HM) is a Canadian mineral exploration company focused on the acquisition and development of mineral projects in Canada. The Company is currently advancing the Devils Den Project, an exploration-stage exploration project that consists of two contiguous claims totaling approximately 3,200 hectares, located on Vancouver Island, British Columbia. The Company conducted an exploration program on the project in 2022, and four geochemical grids were established to identify possible buried mineralization in areas of possible anomalous gold, copper, and other minerals. Multiple high grade mineral occurrences were uncovered including Cu values of up to 4.68% at surface (Devils Den NI43-101, Nov 2022). The Project hosts multiple historical adits with high-grade surface occurrences that remain undrilled. HM Exploration believes that there has been a lack of adequate modern exploration techniques applied to the Project in the past and this presents the opportunity for significant new discoveries.

On Behalf of the Board of Directors

HM EXPLORATION CORP.

“Nicholas Rodway”
President & CEO
info@hmexploration.com

Forward Looking Statements

Certain statements in this news release are forward-looking statements, including with respect to future plans, and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions, the ability to manage operating expenses, dependence on key personnel, that certain exploration methods, including the Company’s proposed exploration model for the Project, may be ineffective or inadequate in the circumstances, that competitive, governmental, geopolitical, environmental and technological factors may affect the Company's operations and markets, that the Company’s specific plans and timing thereof may change, that the Company may not have access to or be able to develop any minerals because of cost factors, type of terrain, or availability of equipment and technology, and that the Company may not be able to raise sufficient funds to carry out or complete its plans. Forward looking statements in this news release include, but are not limited to, statements respecting: the Project and its mineralization potential; the Company’s objectives, goals, or future plans with respect to the Project; further exploration work on the Project in the future; and the completion of the Acquisition. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward-looking statements include, the continued availability of capital and financing, litigation, failure of counterparties to perform their contractual obligations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.

The Canadian Securities Exchange (CSE) does not accept responsibility for the adequacy or accuracy of this release.

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