Traction Uranium Corp. announced that it has entered into a property option agreement (the “Option Agreement”) with Forum Energy Metals Corp. (the “Vendor”) dated February 3, 2023 (the “Effective Date”), pursuant to which the Company has the right, at its option, to acquire up to a 100% interest in the Grease River Property located in Athabasca Basin, Northern Saskatchewan, Canada (the “Property”), in exchange for a series of cash payments, share issuances and funding of exploration expenditures, separated into three phases.

The first phase entitles the Company to acquire a 51% interest in the Property by paying an aggregate of $250,000, issuing an aggregate of 1,625,000 common shares and funding an aggregate of $3,000,000 in exploration expenditures on the Property by December 31, 2025. Forum will be the operator of the Property until the Company completes the first phase. The Grease River Project is located within the north-central margin of the Athabasca Basin near the community of Fond du Lac.

The project consists of two separate claim blocks situated along the NE-trending Grease River Shear zone, a major intracontinental shear zone greater than 400 km long. The nearby Fond du Lac uranium deposit was previously discovered within the shear zone by Amok and Eldorado in the 1970s with an estimated non-compliant historical resource of one million pounds uranium at an average grade of 0.25% U3O8*. The Grease River Project claims are located along trend of the deposit to the southwest and northeast.

Limited exploration has been conducted in the property area and there is potential for additional uranium mineralization along the shear zone. Airborne geophysical surveys are planned in 2023 to aid in structural mapping and to define prospective drill targets. The Company is entitled to acquire a 51% interest in the Property (the “First Option”) by paying an aggregate of $250,000, issuing an aggregate of 1,625,000 common shares (the “Shares”) and funding an aggregate of $3,000,000 in exploration expenditures on the Property by December 31, 2025.

The Company will become operator of the Property if it exercises the First Option. If the Company exercises the First Option then it can acquire an additional 19% interest in the Property, for a total interest of 70% (the “Second Option”), by paying an aggregate of $700,000 in cash, issuing an aggregate of 2,500,000 Shares and funding an aggregate of $3,000,000 in exploration expenditures on the Property by December 31, 2027. If the Company exercises the Second Option, then it can acquire an additional 30% interest in the Property, for a total interest of 100% (the “Third Option”), by paying an aggregate of $1,000,000 in cash, issuing an aggregate of 3,000,000 Shares and funding an aggregate of $3,000,000 in exploration expenditures on the Property by December 31, 2028.

If the Third Option is exercised, the Company would also be required to (i) grant the Vendor a 2% net smelter returns royalty (the “NSR Royalty”), (ii) pay an additional $1,000,000 upon completion of a preliminary economic assessment this as term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) in respect of the Property, (iii) pay an additional $2,000,000 to the Vendor upon completion and disclosure of a NI 43-101 compliant feasibility study ?, and (iv) pay an additional $5,000,000 to the Vendor upon commencement of commercial production on the Property. All Shares issued to the Vendor pursuant to the Option Agreement will be subject to a statutory four month hold period pursuant to applicable Canadian securities laws.