Mr. Joseph Kizis Jr. reports

EQUITY METALS CLOSES FIRST TRANCHE OF OFFERING AND OUTLINES CONTINUED EXPLORATION PROGRAM AT SILVER QUEEN

Equity Metals Corp. has closed the first tranche of its previously reported non-brokered private placement by issuing a total of 13,045,233 flow-through (FT) units. The first tranche consists of a total of 8,333,333 flow-through units sold at a price of 12 cents per FT unit for gross proceeds of $1-million; and 4,711,900 premium flow-through (PFT) units sold at a price of 14.7 cents per PFT unit for gross proceeds of $692,650; for aggregate total gross proceeds of $1,692,650.

Each FT unit and PFT unit consists of one flow-through common share and one non-flow-through share purchase warrant, with each warrant exercisable to purchase one additional common share for a period of three years at an exercise price of 15 cents per share. Securities issued pursuant to this tranche of the offering, including common shares, share purchase warrants and finder's warrants issued as finder's fees, carry a legend restricting trading of the securities until April 30, 2023.

The company expects to close a second tranche of the offering in January, 2023, by issuance of up to 10.5 million non-flow-through units (NFT) to be sold at a price of 10 cents per NFT unit for gross proceeds of $1.05-million. Each NFT unit will consist of one non-flow-through common share and one warrant, exercisable at 15 cents for a period of three years.

Finders' fees and hold period

The company may pay finders' fees consisting of cash and non-transferable warrants in connection with the offering, subject to compliance with the policies of the TSX Venture Exchange. All securities issued and sold under the offering will be subject to a hold period expiring four months and one day from their date of issuance. Completion of the offering and the payment of any finders' fees remain subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

Use of proceeds and 2023 work program

The gross proceeds received from the sale of the FT units and PFT units will be used for work programs on the company's Silver Queen gold-silver exploration property in British Columbia. The net proceeds received from the sale of the NFT units will be used for general working capital and may include exploration expenditures.

It is anticipated that exploration activities at Silver Queen will commence during Q2 2023 and will initially test extensions of the Camp and Sveinson targets, identified in drilling from 2021/2022 exploration programs. Further work will then concentrate on the confirmation and extension of mineralization on the George Lake and George Lake South targets and the identification of additional bonanza-grade silver mineralization on the western side of the property.

About Silver Queen project

The Silver Queen project is a premier gold-silver property with over 100 years of historical exploration and development; it is located adjacent to power, roads and rail with significant mining infrastructure that was developed under previous operators Bradina JV (Bralorne Mines) and Houston Metals Corp. (a Hunt Brothers company). The property contains two historical declines into the No. 3 vein, camp infrastructure and a maintained tailings facility.

The Silver Queen property consists of 45 mineral claims, 17 Crown grants and two surface Crown grants totalling 18,852 hectares with no underlying royalties. Mineralization is hosted by a series of epithermal veins distributed over a six-square-kilometre area.

On Dec. 1, 2022, the company reported an independently estimated mineral resource estimate (MRE) for Silver Queen which increased an earlier MRE, initially reported on July 16, 2019, by plus 187 per cent in the indicated category and by plus 30 per cent in the inferred category on an AgEq (silver equivalent) basis with approximately 74 per cent of the new MRE classified as indicated resources. The company has expended $6.75-million on exploration of the Silver Queen project since 2019, resulting in a very low discovery cost of 15 cents/ounce of added AgEq or $11/ounce of added AuEq (gold equivalent). The MRE remains open for additional delineation west of the Camp target and within the Sveinson target. In addition, there are several targets that have only been tested by a few drill holes and remain very attractive areas for new discoveries and MRE increase.

For more information on the recent MRE, please refer to the company's news release dated Dec. 1, 2022.

Robert Macdonald, MSc, PGeo, is VP (vice-president) of exploration of Equity Metals; he is a qualified person, as defined by National Instrument 43-101. He is responsible for the supervision of the exploration on the Silver Queen project and for the preparation of the technical information in this disclosure.

About Equity Metals Corp.

Equity Metals is a Manex Resource Group company. Manex provides exploration, administration and corporate development services for Equity Metals' two major mineral properties, the Silver Queen Au-Ag-zinc-copper project, located in central British Columbia, and the Monument diamond project, located in Lac De Gras, Northwest Territories. The company also has a 1-per-cent royalty (Greenwood royalty) and a 100-per-cent working interest in the La Ronge silica project.

The company owns a 100-per-cent interest, with no underlying royalty, in the Silver Queen project, located along the Skeena Arch in the Omineca mining division, British Columbia. The property hosts high-grade, precious- and base-metal veins related to a buried porphyry system, which has been only partially delineated. The company also has a controlling JV (joint venture) interest in the Monument diamond project, NWT, strategically located in the Lac De Gras district within 40 km of both the Ekati and Diavik diamond mines. The project owners are Equity Metals (57.49 per cent), Chris and Jeanne Jennings (22.11 per cent); and Archon Minerals Ltd. (20.4 per cent). Equity Metals is the operator of the project.

The 100-per-cent-controlled La Ronge silica project is a historic sand quarry located in central Saskatchewan, approximately 60 kilometres south-southeast of La Ronge, Sask., and 210 kilometres west of Flin Flon, Man. Preliminary studies indicate the silica deposit may be developed into a simple and profitable, low-cost mining and washing operation to produce high-purity silica (over 98 per cent SiO2 (silicon oxide)), a specialty product for the EV (electric vehicle) battery industry.

We seek Safe Harbor.