Royalty Conditions Of CK Gold Project To Benefit Wyoming's Education Common School Fund

CHEYENNE, WY - U.S. Gold Corp. reported on the CK Gold Project royalty associated with the Wyoming Office of State Land and Investments (OSLI) mineral leases. In commenting on the royalty rate for the CK Gold Project, George Bee, President and CEO said, "We would like to thank the Board of Directors and management of OSLI for responding to our request to clarify aspects of the Leases, including the royalty rate. Our team has extensive experience working in many jurisdictions, and we can honestly say that the degree of professionalism and service that OSLI, and all state authorities, have shown as we advance the project is exemplary.

We are committed to advancing the CK Gold Project in benefit of the state, local community, and our shareholders. Based on our December 1, 2021, pre-feasibility study figures, we anticipate that beyond the taxes, opportunities, and jobs that we hope to create, we estimate that royalty payments would exceed $30 million over the life of the CK Gold Project mine.  This represents a significant boost for funding education initiatives in Wyoming.”

The CK Gold Project, previously known as Copper King, is located on land owned by the state of Wyoming and leases the mineral rights from OSLI. Leases 0-040828 and 0-040858 (the "Leases"), which lie within the historic Silver Crown Mining District, were discovered in the late 1800s and were last mined in the early 1900s. Conditions of the Leases include royalty payments to the OSLI, earmarked for K-12 education within the state through the Common School Fund.

The proposed CK Gold Project, currently engaged in permitting activities, is anticipated to be a revitalization of copper and gold mining in the state of Wyoming after many years of dormancy. The recovery of natural resources in Wyoming is an important part of the state's economy, and, consequently, the state is well-equipped to monitor and regulate the resource extractive industry. However, it was recognized that the royalty conditions of the Leases associated with the CK Gold Project did not take into consideration some of the idiosyncrasies of the copper and gold, hard rock, extractive industry and more specifically, the CK Gold Project.

Previously, we approached OSLI with a proposal for a royalty rate which would both be comparable with other mineral-producing states and protect the interests of the state. We volunteered to finance an independent study, managed by OSLI, which provided OSLI's Board of Directors with an independent recommendation on the project and a proposed royalty rate applicable to the CK Gold Project. On April 6, 2023, OSLI's Board of Directors convened and approved the recommendation that the OSLI staff proposed, fixing the royalty rate at 2.1% of the net receipts that Gold King Corp., a wholly owned subsidiary of U.S. Gold Corp., would receive.