The Florália Iron Ore Project

Overview

The Florália Iron Ore Project is a high-grade hematite Direct Shipping Ore (DSO) project located in Minas Gerais, Brazil's Iron Quadrangle - the country's most established and mining-friendly iron ore district. The Property covers approximately 613 hectares, 70 km east of Belo Horizonte, surrounded by world-leading iron ore producers including Vale and ArcelorMittal.

Under the definitive option agreement executed May 13, 2026, Bolt may acquire a 100% interest in the Florália Property from Max Iron Brazil Ltd. (a subsidiary of Max Resource Corp., TSXV: MAX) through staged share consideration over 30 months. The Florália license was originally acquired by Max from Jaguar Mining for US$1 million (completed April 2024).

Option Agreement Terms

The principal terms of the Florália Option Agreement (executed May 13, 2026) are set out below. The transaction remains subject to CSE and other regulatory approvals. The full terms are set out in the Company's filings on SEDAR+.

• Consideration: Bolt may acquire 100% of the Florália Property by issuing 26,800,000 common shares to Max Iron over 30 months (6,700,000 shares at each of 12, 18, 24 and 30 months). The consideration is all-share; no cash payment is payable to Max Iron under the option.
• Minimum ownership: The shares issued to Max Iron must represent at least 25% of Bolt's outstanding shares, with a top-up if Max Iron's holding is diluted below 25%.
• Board nominee: Max Iron is entitled to one board nominee.
• Acceleration: Bolt may accelerate the option, and must complete the share payments within 5 business days upon a change of control, encumbrance, or a mining decision.
• Approvals: Subject to CSE and other regulatory approvals.

Max Debt Settlement

In connection with the transaction, Bolt issued to Max 4,000,000 common shares and 2,000,000 pre-funded warrants (each exercisable at $0.001 for 24 months) in settlement of debt, subject to a 24-month resale restriction. Max receives a board nominee and participation rights for so long as it holds 5% or more of Bolt's outstanding shares.

Project Highlights

Geology

The Florália deposit consists of banded iron formation (BIF) lenses hosted within Archean metamorphic rocks of the Quadrilátero Ferrífero (Iron Quadrangle) geological province - the same regional setting that hosts Vale's Brucutu, ArcelorMittal Andrade, and several other operating DSO mines.

Detailed geological mapping conducted at 618 observation points across the entire claim area has defined the BIF lens geometry, allowing the geological team to constrain the high-grade hematite zones and design subsequent drilling.

Exploration Work Completed (2024-2025)

• Geophysics: 140 line-km airborne high-resolution LiDAR and magnetic survey; identified mineralized zones and structural controls.
• Geological mapping: 618 observation points; detailed BIF lens definition across the claim area.
• Geochemical sampling: 149 samples submitted to ALS and SGS; 131 returned grades of 50-61% Fe with low phosphorous content (0.01-0.05%).
• Diamond drilling: 6 holes totaling 761 metres; intersected 222 metres of oxidized iron formation.
• Auger drilling: 86 holes (890 metres total); 274 samples analyzed by SGS Geosol.
• Geometallurgical testing: Bench-scale dry magnetic separation testing completed to assess the viability of dry processing.

Metallurgy

Geometallurgical bench-scale testing was conducted on six bulk samples representing coarse fractions (2 mm, 6 mm, and 12 mm) across three magnetic field strengths (1,400, 2,500, and 7,500 Gauss) to evaluate dry magnetic concentration of the material.

Dry magnetic separation produced an 8-15% Fe grade increase (range 3.4-15.2%) with an average mass recovery of approximately 74% across the six bulk coarse-fraction samples. The process is 100% dry: no water is used in processing, and no tailings dam is contemplated for the conceptual dry-processing approach.

The Company's conceptual processing approach is dry processing, which is intended to reduce reliance on wet beneficiation. Permitting requirements are subject to regulatory review and have not been finalized. Tailings and water management are relevant considerations in Brazil following the 2019 Brumadinho dam disaster.

Conceptual Development Scenario

Management's conceptual development estimates contemplate development capital of approximately US$12 million and operating costs of approximately US$15 per tonne (Company investor presentation; conceptual estimates subject to defining a mineral resource, study results, permitting and financing).

The Company is targeting production in H2 2027 at an anticipated production rate of approximately 1.5 Mtpa; subject to defining a mineral resource, completion of studies, permitting and financing. No production decision has been made. A feasibility study is targeted for 2026, and any construction reference is subject to a positive feasibility study and a construction decision.

Infrastructure

Florália's strategic location provides immediate access to existing road and rail infrastructure servicing Brazil's largest iron ore producers:

References to neighbouring properties and operations are for geological and infrastructure context only. Mineralization on neighbouring properties is not necessarily indicative of mineralization on the Florália Property.

Permitting and Environmental

• EIA/RIMA: Environmental impact licensing in development.
• Landowner agreement: Executed.
• Processing approach: The Company's conceptual approach is dry processing.
• Permitting: Requirements are subject to regulatory review and have not been finalized.
• Mining state: Minas Gerais, an established Brazilian mining jurisdiction.

Next Steps

The Company is planning technical and economic studies on the Florália DSO project as exploration advances. Any feasibility-level study is contingent on first defining a mineral resource. Timelines for studies, permitting, and any construction decision have not been finalized and depend on exploration results, permitting, and financing. Current activities include:

• Assessing whether available data can support a future NI 43-101 mineral resource estimate. No mineral resource has been defined on the Florália Property to date.
• Refining the Leapfrog 3D geological model.
• Advancing EIA/RIMA licensing.
• Planning technical and economic studies as exploration advances.
• Continued exploration to assess the resource potential of the Property.

Exploration Target Disclosure

The Florália Property is supported by an independent NI 43-101 Technical Report by Warren D. Robb, P.Geo. (BC #1001994), effective May 14, 2024, filed on SEDAR+ under Max Resource Corp. ("Max"). Max subsequently disclosed an Exploration Target of 50-70 million tonnes at 55-61% Fe (hematite DSO) and 130-170 million tonnes at 51-55% Fe (Itabirite) in its news releases dated November 15, 2024 and October 23, 2025, reviewed and approved by Tim Henneberry, P.Geo. (BC), a Qualified Person under NI 43-101 and a member of Max's advisory board.

Cautionary (NI 43-101 s.2.3): The Exploration Target is conceptual in nature; there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the Exploration Target being delineated as a mineral resource. Bolt has not independently verified the Exploration Target and is not treating it as a current mineral resource or mineral reserve.

The initial Exploration Target of 8-12 Mt at 58% Fe disclosed by Max in its news release dated August 19, 2024 has been superseded by the expanded target above.

Readers are cautioned that the geology of nearby properties is not necessarily indicative of the geology of the Property.

Qualified Person: The technical and scientific information on this website relating to the Florália Project has been reviewed and approved by Mr. Deepak Varshney, P.Geo., a Qualified Person under National Instrument 43-101. Mr. Varshney is not independent of Bolt within the meaning of NI 43-101 s.1.5 by virtue of his shareholdings in the Company.

Sources: Max Resource Corp. news release dated November 15, 2024; Max Resource Corp. news release dated October 23, 2025; NI 43-101 Technical Report "Florália Project" by Warren D. Robb, P.Geo., effective May 14, 2024 (SEDAR+, under Max Resource Corp.).