Nelson Resources Launches First Underground Drilling at Orleans Mine After Successful Rehabilitation

Orleans Mine Underground Drilling Program and High-Grade Sampling Highlights

Nelson Resources has commenced its first underground drilling program at the Orleans Mine within the Gold Point Project, marking a pivotal step in the company’s exploration strategy. The initial drilling phase involves short holes approximately 20 metres each, targeting remnant and unmined high-grade vein positions adjacent to historic stopes. This follows successful rehabilitation of the upper levels of the historic Orleans Mine, restoring access via the Dunfee decline and establishing drill platforms for exploration.

Early chip sampling results from the rehabilitation revealed 77.9g/t gold and 46.1g/t silver over a 1-metre interval of fault breccia near a historic stope on the 300-foot level. These findings guided the drilling program design, which plans up to 15 diamond core holes using a Bazooka drill to test Orleans vein extensions up to 40 metres beyond existing workings, including possible parallel footwall structures. Underground drilling offers advantages over surface drilling such as shorter holes, better angles, improved precision, and lower costs, enabling efficient exploration of the historic mining district.

Nevada Rand LLC Appointment Ensures Operational Continuity

Nelson Resources appointed Nevada Rand LLC as the underground diamond drilling contractor, a strategic choice to maintain operational efficiency at Orleans Mine. Nevada Rand LLC previously completed the Orleans Mine rehabilitation during the quarter, bringing valuable experience and familiarity with the site’s geology and operational challenges. This contractor continuity reduces mobilisation time and leverages existing knowledge, facilitating a smooth transition from rehabilitation to drilling.

This approach highlights Nelson’s focus on operational efficiency within its staged underground exploration strategy. Retaining the same contractor minimizes disruptions and maximizes lessons learned, supporting the company’s broader goal to replicate the Orleans model across the Gold Point system, establishing a repeatable method for evaluating extensive historic underground workings.

Great Western Mine Rehabilitation and Surface Sampling Success

Rehabilitation has also started at the Great Western Mine, the second historic high-grade mine targeted in Nelson’s staged underground exploration at Gold Point. The rehabilitation follows the proven methodology used at Orleans: stabilising underground access, mapping, sampling, conducting surveys, and defining drill targets. This systematic process reflects the company’s commitment to thorough geological understanding before drilling.

Recent surface sampling in the Great Western and Grand Central areas returned multiple high-grade gold results, including samples up to 32.2g/t and 31.7g/t gold, underscoring the district’s ongoing gold potential. These surface results guide rehabilitation and future drilling plans. The Great Western Mine rehabilitation marks the next phase in Nelson’s multi-mine exploration campaign, building on Orleans’ success and aiming to unlock further targets across Gold Point.

Gold Point’s Historic Underground Network and 140-Year Exploration Potential

The Gold Point Project features an extensive historic underground network with over 5 kilometres of workings across five historic mines and more than 20 additional shafts, providing multiple access points for Nelson’s staged underground exploration. The project covers 195 federal lode claims and 7 patented lode claims in Western Nevada, about 90 kilometres south of Tonopah along US Highway 95, within the highly prospective Walker Lane District. For the first time in over 140 years, the district is consolidated under one owner, enabling a unified, camp-scale exploration approach.

Pre-World War II production at Gold Point totaled approximately 75,000 ounces of gold at average grades of 20–30g/t, with significant silver production. Historical records show this production came mainly from four of fifteen mapped high-grade gold-silver veins, indicating substantial untapped exploration potential. Nelson’s strategy involves applying the Orleans model across Gold Point, including rehabilitating priority mines, mapping and sampling, building 3D geological models, drilling remnant and unmined extensions underground, and advancing additional mine areas.

Cinnamon Tungsten Property Acquisition Advances Critical Minerals Strategy

Nelson Resources acquired the Cinnamon Tungsten Property by staking 186 Bureau of Land Management (BLM) lode claims covering about 15.5 square kilometres, located west of Guardian Metal Resources’ advanced Pilot Mountain Tungsten Project. The Pilot Mountain Project is among the most advanced undeveloped tungsten assets in the US, supported by US$6.2 million in Department of Defense funding, positioning Cinnamon in a district with strong critical minerals credentials and tungsten potential. This acquisition aligns with Nelson’s strategic expansion into critical minerals alongside its gold and silver focus.

A high-resolution 386 line-kilometre helicopter-borne magnetic and radiometric survey by Precision GeoSurveys refined intrusive-related skarn targets on Cinnamon. Accelerated reconnaissance includes detailed geological mapping, prospecting, rock-chip sampling, and integration with US Geological Survey GeoDAWN data and satellite imagery. The property is prospective for tungsten skarn mineralisation in a district with strong critical minerals credentials. These early activities position Cinnamon as a compelling addition to Nelson’s portfolio, with further results expected as exploration advances.

Yarri Gold Project Progress Under Right to Mine Agreement

The Yarri Gold Project has progressed under the Right to Mine Agreement with MEGA Resources Pty Ltd, with key milestones from prior periods continuing to reduce project risk. The Native Title Agreement was signed and Mining Leases M31/503 and M31/504 granted, representing critical regulatory and stakeholder approvals enabling exploration advancement. These approvals clear the way for an approved 11,544-metre reverse circulation drilling program to test project targets.

During the quarter ended 30 June 2026, no new field activities occurred at Yarri as the company prioritised operational readiness for drilling. This pause reflects strategic focus on the advanced Gold Point exploration in Nevada and the newly acquired Cinnamon Tungsten Property, while maintaining progress toward Yarri drilling. Regulatory approvals position Yarri for systematic exploration when drilling timing is optimal.

Exploration Expenditure and Financial Position Support Development Plans

Nelson Resources reported $794,000 in exploration and evaluation expenditure during the quarter ended 30 June 2026, reflecting active investment in Gold Point and Cinnamon projects. Administration and corporate costs were $162,000, with no mining production or development activities reported. The company’s cash balance was approximately $2.1 million as of 30 June 2026, supporting ongoing exploration. Management remains confident in available capital to execute planned activities at Gold Point and Cinnamon in coming quarters.

Related party payments included $98,000 for directors, company secretary, and CFO fees and wages. The company issued 46,428,571 fully paid ordinary shares subject to 12-month escrow and 1,094,166,666 performance rights with vesting conditions to Gold Point Project vendors, as detailed in Appendix 2A and 3G released on 18 May 2026. These issuances represent consideration for the Gold Point acquisition, forming the foundation for the staged underground exploration now underway.

Exploration Strategy Positions Nelson for Accelerated Underground Discoveries

Nelson Resources’ staged underground exploration strategy departs from traditional surface gold exploration by leveraging extensive historic underground infrastructure at Gold Point to drill from underground positions. This method offers operational and cost benefits, including shorter holes with better angles, improved targeting precision, and reduced drilling costs compared to surface drilling. Successful Orleans Mine rehabilitation and drilling commencement demonstrate this approach’s viability, enabling rapid exploration advancement across multiple historic mine sites in the consolidated district.

The company’s diversified portfolio—gold and silver at Gold Point (Nevada), tungsten at Cinnamon (Nevada), and gold at Yarri (Western Australia)—provides exposure to multiple commodities and jurisdictions. The Cinnamon acquisition and Orleans drilling initiation mark tangible progress toward discovery-driven exploration, with upcoming drilling results at Orleans and Great Western mines serving as key catalysts. Nelson’s strategy to replicate the Orleans model across Gold Point reflects a disciplined, methodical plan to unlock value across the historic mining district over coming quarters and years.