VR Introduction

January, 2021

History and Structure

VR Resources Ltd. (“VR”) is an established junior mineral exploration company focused on blue sky opportunities in copper and gold in the western United States and Canada. VR is a publically traded Canadian company registered in British Columbia and listed on the Venture Exchange (TSX.V) in Vancouver under the symbol VRR.V, with secondary listings in Frankfurt (5VR) and on the OTCQB in the United States (VRRCF).

VR is the continuance of 4 years of active mineral exploration in Nevada, USA, started by a Vancouver-based private company in 2014 founded and run by two geologists with diverse experience in global mineral exploration, and a proven track record in the junior sector, having steered the sale of three companies in the past seven years for an aggregate valuation in excess of C$1.3B. The goal of VR is explicit: leverage its experience and expertise in grassroots exploration towards early-stage discovery in order to capture the steepest part of the value creation curve in the exploration and mining process for its shareholders.

The Company maintains its day-to-day work out of an exploration office established in Vancouver, British Columbia. The Company employs a tight administrative cost structure, with a focus on translating publically-raised funds directly into its mineral exploration work.

The Company has a working capital of approximately $3.4m going into 2021, sufficient to execute its mineral exploration strategy for the year and support its corporate business and general administrative expenses through 2022. The Company has approximately 77m shares issued and a very tight share structure, including an insider position of approximately 12%, and a collective holding of approximately 45% by the CEO and five mining-long resource investment funds.

The Company has a robust and ongoing capital markets strategy. The CEO maintains current dialogue with six different capital markets analysts and retail investor newsletter writers who formally Cover the Company. The Company continues to work with Peak Marketing Corporation on market communication and dissemination of information, ensuring that all of its market-related information and certain social media links are both internally consistent and up-to-date. The Company retains Renmark Communications on an ongoing basis to maintain a fully functioning and continuously updated website; the Company’s website is at http://www.vrr.ca.

Key Mineral Properties and Exploration Plans for 2021

The Company is focused on opportunities in mineral districts which have been underexplored during the past 50 years of the modern exploration era. The Company applies modern mineral deposit models and new exploration technologies to properties with large copper-gold mineral system footprints.

VR explores properties it owns outright, 100%. Mineral exploration properties in Nevada are held in a wholly-owned US subsidiary registered in Nevada. New opportunities are evaluated on an ongoing basis, whether by internal generative work and direct staking, by a joint venture or a direct acquisition of a property from a third party, or by a corporate transaction (e.g. merger).

An independent, NI 43-101 compliant Technical Report for the Company’s Bonita property in Nevada and dated March 2, 2017, is filed on SEDAR. The report was the foundation for VR’s public listing in 2017. Based on the synthesis and interpretation of four years of exploration data collected by VR on Bonita, the report recommends first-pass drilling on two main targets. The Company initiated that drilling in the fall of 2017, and completed a second program in the summer of 2018, following the completion of an airborne ZTEM survey. The Company believes the potential of Bonita is unusual based on the district-scale size of the property and the distribution of surface showings and historic workings within it, and that the drilling to date is insufficient for a complete test of the two main alteration centers (targets). The Company intends to complete first-pass drilling in order to properly evaluate the discovery potential of the large-scale copper-gold hydrothermal system at Bonita.

The Company added the Ranoke and Hecla-Kilmer copper-gold breccia properties in northern Ontario to its Nevada-based portfolio in 2018 and 2020 respectively, as a direct extension of the Company’s platform of blue-sky exploration on large-footprint copper-gold systems in Nevada using new exploration technologies and modern mineral deposit models.

The Ranoke and Hecla-Kilmer properties are remote and the targets are covered and previously untested, yet they are proximal to regional infrastructure including rail, power and highway which enable cost-effective exploration and would facilitate efficient development if a discovery is made. Both Ranoke and Hecla-Kilmer (H-K) are large magnetic anomalies associated with regional gravity features along the western margin of the Kapuskasing Structural Zone (KSZ), a crustal-scale shear zone hundreds of kilometres long which bisects the Archean Superior province between James Bay and Lake Superior. The KSZ has a long-lived history of repeated ultrabasic and alkaline intrusions spanning 1.6 billion years, and it is a prospective setting for a large IOCG or carbonatite-hosted hydrothermal copper-gold breccia system.

First-pass drilling commenced at Ranoke in 2019 and at H-K in the fall of 2020 where VR intersected a hydrothermal breccia and ultra-high temperature sulfide alteration system which comes to surface and has more than 600 m of continuous vertical extent in two drill holes, HK20-002 and 004. Chalcopyrite (copper sulfide) occurs in veinlets and scattered semi-solid sulfide replacement zones within hydrothermal breccia, and is associated with hematite, magnetite and pyrite; sulfide zones are elevated in phosphorous and the light rare earth elements Ce and Y. Phonolite porphyry dykes consistently elevated in gold, and together with sulfide in iron-rich breccia underscore the potential for Hecla-Kilmer to host a copper-gold breccia deposit with IOCG affinity. A follow-up ground-based and detailed gravity survey is planned for H-K this winter, March, 2021, in order to refine targets currently in hand for follow-up drilling anticipated for the second half of the year.

The Company also completed an independent, NI 43-101 compliant Technical Report on the Amsel property in 2019, as part of its Big Ten epithermal gold project in the Walker Lane mineral belt of west-central Nevada. After continuous exploration over the past 18 months, the large-scale silica-potassium alteration cap covering a 2 x 3 km are on the Amsel hill-top is ready for drilling in the southwest quadrant of the system where gold and silver are anomalous, along with high temperature minerals such as tungsten and moly’. There are historic workings at Amsel, but the core of the mineral system, the root, has never been drill-tested, and the 18 M oz Round Mountain gold deposit and mine located 45 km’s to the north provides a compelling analogue for the potential upside of this property based on numerous comparable attributes.

The Company initiated the permit process for Amsel in 2020, and anticipates receiving the permit this spring, which would be the springboard for a first-pass drill program planned for this summer, 2021.

In the meantime, the Company is focused on the Reveille silver-copper property acquired in June 2020, and located some 75 km’s to the southeast of Amsel in west-central Nevada.

The opportunity for VR at Reveille is twofold:

  • The consolidation of the numerous and high grade silver-copper showings in the south Reveille range within the current property boundaries will enable VR to be the first Company in more than 150 years of history at Reveille to explore the entire mineral system systematically using the recently developed CRD mineral deposit model (carbonate replacement deposit), and by utilizing modern exploration technologies across the entire mineral system in order to evaluate, prioritize and drill test any number of exposed vein, manto and breccia-pipe silver-copper occurrences at surface in the ranges, and more importantly, the potential large-scale source and driver of the overall mineral system located to the west, in the valley, covered and never previously explored.
  • There are historic workings including local underground drifts and larger surface pits on the north and easts side of the property which date as far back as the 1870’s, but there is no previous diamond drilling of any of the showings, nor any targets in the valley on the western flank of the range.

Despite the lack of exploration at Reveille during modern times, there is excellent highway access to the property, and roads within it that will facilitate cost-effective exploration.

After an array of surveys completed during nearly continuous exploration for six months starting in June, 2020, the Company applied for and received it’s permit for first-pass drilling at Reveille. A 3D array DCIP survey is planned for February to refine targets in the covered valley on the western range front, to be followed by the first stage of a two-stage RC drill program planned for March.

Investment Summary

VR Resources has demonstrated conviction and discipline towards its business model and exploration strategy during the past 7 years in order to successfully navigate a challenging capital markets cycle in resources during the past decade. VR has maintained active exploration on the ground throughout that period in order to expose its shareholders to the potential for discovery-based value creation, and is now positioned with targets ready to drill in 2021, when there is a clear resurgence and buoyancy in the gold, silver and copper sectors.

The investment upside to VR Resources has not changed, and is multi-faceted:

  • The life-long experience of its management and Board specifically in mineral exploration, and its collective track record of success in value creation for shareholders through successful M&A;
  • The focus of its executive management exclusively to the business of VR;
  • A tight share structure, including an insider position of approximately 12%, and a collective holding of approximately 45% by the CEO and five mining-long resource investment funds;
  • 100% ownership of properties; no joint venture interests, no carried interests, no back-in interests;
  • Properties with local infrastructure (road access and near-by service -hubs) for cost-effective exploration, and infrastructure such as power grids and railroads essential to mining companies for viable project development should a discovery occur;
  • Properties located in jurisdiction with a long and well-established history of regulatory support for the exploration and mining industry;
  • Properties located in mineral districts where major mining companies are active.

Technical Information and Governance

VR strives for technical excellence in its work, and corporate industry leadership. VR’s management has led numerous industry and research organizations in the past, and has been recognized with numerous industry achievement and recognition awards.

Technical information contained on this website has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101. Justin Daley, MSc, P.Geo., Exploration Manager at VR and a non-independent Qualified Person oversees all aspects of the Company’s mineral exploration projects. The content of this document, and this website, has been prepared and reviewed on behalf of the Company by the CEO, Dr. Michael Gunning, PhD, P.Geo., a non-independent Qualified Person.