Burrell Resources Inc. Enters Option Agreement for Rainmaker Copper Project

Burrell Resources Inc. has entered into an option agreement to acquire up to a 100% interest in the Rainmaker copper project, a porphyry copper exploration property located in Lyon County, Nevada. The Rainmaker Project is situated approximately 25 kilometers south of the Yerington Copper District, a major porphyry copper district in western Nevada.

The Rainmaker Project is considered a district-scale copper opportunity due to its geological similarity to the Yerington Copper District. The property features a Ridge target that covers a 2.5 by 1.5-kilometer exposure of porphyry-related hydrothermal alteration. This alteration is interpreted to be analogous to the style of alteration typically found above a copper ore shell, suggesting the potential for a large-tonnage copper porphyry deposit.

Burrell Resources Inc. can earn full title to the Rainmaker Project by making staged option payments and fulfilling work commitments. The total option payments amount to $900,000, including an initial $25,000 payment. Additionally, Burrell must complete work commitments totaling $5,000,000 over an approximate six-year period. Burrell has the option to accelerate these payments at its sole discretion to exercise the option early.

Burrell will also make certain milestone payments totaling $1,500,000, payable at the company's election in cash or up to 80% in common shares of the Company, priced at the 20-day volume-weighted average trading price prior to the milestone being achieved. The milestones include the delivery of a compliant NI 43-101 report on a maiden resource.

The Rainmaker Project is subject to a retained net smelter returns (NSR) royalty of 1.5% in favor of the Optionor. Burrell has the option to buy back 1.0% of the NSR, reducing the royalty to 0.5%, for an aggregate of $1,500,000. A finder's fee of 200,000 common shares to arms-length third parties is payable on this transaction, subject to a four-month statutory hold period.

The Rainmaker Project comprises 77 unpatented lode mining claims held by the Optionor in Lyon County, Nevada. The project is situated in the Walker Lane, a tectonic structural belt along the southwest margin of the Nevada Basin and Range terrain, one of the world's premier metallogenic provinces. The Rainmaker Project is interpreted to be geologically analogous to the Yerington District and is considered prospective for both copper porphyry and skarn mineralization.

Exploration will focus on the Ridge target, where porphyry-related hydrothermal alteration crops out over a 2.5 by 1.5-kilometer area. Additional prospects have also been identified for follow-up exploration surveys. Burrell intends to fund and complete the initial exploration program to advance the exploration targets through to drill testing. Key components of the program include additional claim staking, a drone-borne magnetometer survey, an induced polarization (IP) geophysical survey, and a reverse-circulation (RC) drilling program to test the Ridge target and any targets defined by the geophysical surveys, subject to receipt of the required drill permit.