Scout Discoveries Announces 14.9% Strategic Investment by Agnico Eagle and an Earn-In Agreement in Idaho; Electrum Increases to 30% Ownership in Combined US$25 Million Private Placement

Agnico Eagle has agreed to invest $14.8 million in Scout for 14.9% ownership, with The Electrum Group agreeing to invest $10.2 million to increase its ownership to 30%, at $1.50 per share.

Funds will support exploration at Cuddy Mountain, Speed Goat, and additional projects.

Agnico Eagle may earn up to 70% interest in Scout's Elk City and Muldoon projects by funding up to $60 million and $30 million, respectively, over eight years in exploration expenditures, with approximately $9.4 million budgeted through 2027.

Scout Discoveries Corp. ("Scout" or the "Company") is pleased to announce that it has agreed to a $14,769,411 strategic equity investment (the "Investment") in Scout by Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle"), at $1.50 per share representing 9,846,274 shares for 14.9% fully diluted ownership of the Company.

Concurrently, Scout's largest shareholder, The Electrum Group, has agreed to invest $10,233,052.50 at $1.50 per share for 6,822,035 shares to increase its fully diluted ownership in Scout from 27% to 30%, comprising a total private placement of $25,002,463.50, with no warrants or fees (the "Private Placement").

Closing of the Investment is subject to customary closing conditions as well as closing of the Ownership Transfers (as defined below) in respect of the Muldoon project.

All dollar amounts herein are expressed in U.S. dollars.

Alongside the Private Placement, Scout entered into arrangements with Bronco Creek Exploration Inc. ("Bronco Creek") and Basin and Range Resources, LLC, each wholly-owned subsidiaries of Elemental Royalty Corp.

Under those arrangements, Scout will acquire 100% ownership of the Speed Goat, Muldoon, Robber Gulch, Century, Moose Ridge, Independence, and Silverback projects (the "Ownership Transfers") upon completion of the applicable closing deliverables, including the issuance of 2,284,821 shares of Scout.

Upon closing, the Ownership Transfers will eliminate approximately $4.5 million in future cash payments and $8.4 million in future work commitments across the seven projects.

These were projects the Scout team generated while at Bronco Creek from 2018 to 2022, before Scout was spun out in 2023.

On closing of the Investment, Scout and Agnico Eagle will execute a definitive earn-in agreement covering Scout's Erickson Ridge and South Orogrande projects (collectively, the "Elk City Project") in Idaho (the "Elk City Earn-In") and Agnico Eagle will acquire an option to, among other things, enter into an earn-in agreement on Scout's Muldoon project in Idaho.

Under the Elk City Earn-In, Agnico Eagle may earn a 51% interest in the Elk City Project by funding $20 million of work at Elk City over a five-year period.

Upon exercise of the option under the Elk City Earn-In, Scout and Agnico Eagle will enter into a joint venture agreement under which Agnico Eagle may earn an additional 19% interest, for a total 70% interest, by funding a further $40 million at Elk City over the following three years.

Agnico Eagle's option to enter into an earn-in agreement in respect of Scout's Muldoon project, if exercised, will entitle Agnico Eagle to enter into an agreement to earn into a 51% interest in the Muldoon project by funding $10 million of work at the Muldoon Project over a five-year period.

Following completion of such funding, the Muldoon earn-in agreement will provide Agnico Eagle with the option to enter into a joint venture agreement with Scout under which Agnico Eagle may earn an additional 19% interest, for a total 70% interest, by funding a further $20 million at the Muldoon project over the following three years.

Scout will serve as the operator during the earn-in periods, with drilling performed by Scout's internal drilling division, Scout Drilling LLC.

Initial exploration programs total approximately $9.4 million through the...