First Nordic Metals (FNM.V): Update Letter to Shareholders

We wanted to update everyone on the very busy and productive past five months at the Company, since the completion of the merger between Barsele Minerals and Gold Line Resources. As you may have already seen, last week we announced Agnico Eagle Mines Limited (Agnico) as a cornerstone shareholder of the Company and the completion of our 100% acquisition of the Oijärvi Greenstone Project in Finland which hosts a maiden high-grade gold-silver resource.

Two Underexplored District-Scale Belts in Northern Europe

The Finnish acquisition now gives the Company two 100%-owned district-scale belts to explore and develop. On one of those belts, the Gold Line Belt in Sweden, is a joint venture between First Nordic Metals (FNM) and Agnico Eagle on the Barsele Gold Project, one of Europe’s largest gold deposits and one of the top 10 largest gold deposits (by gold ounces) not wholly owned by a major miner. Immediately surrounding Barsele, we 100%-own over 100,000 hectares of the Gold Line Belt, which already hosts five targets we feel have potential for another multimillion-ounce deposit. As part of their investment into FNM, Agnico has the right to increase their equity ownership of FNM to 19.9%, and it is no doubt an important “stamp of approval” for our efforts in consolidating the Gold Line Belt in Sweden.

We have been actively marketing the FNM “Europe’s next gold camp” generational opportunity in Sweden, where we control over 100 km of a first-order structure (strike length) on an underexplored greenstone belt. As you may know, the Scandinavian greenstone belts are the least explored belts in the world and are essentially one of the final frontiers for major gold discovery opportunities. We are fortunate to be working in a tier-one jurisdiction where we know the government is pro-mining, tenure is never at risk, and where we expect major inflows of capital to advance mineral discovery and development opportunities.

Company Milestones & Catalysts

We have many exciting things planned for the balance of 2024, but we want to highlight some of the recent developments and key value drivers that many shareholders may not know about FNM

• The Barsele project has more than 165,000m of drilling to date. Further, its currently published resource is based on drilling only up to 2019 and based on a much lower gold price; the resource currently captures the deposit down to ~550 m and based on deep geophysics and drilling, resource growth at depth seems obvious, with drilling already hitting mineralization at depths down to over 950 m.

• Our 100%-owned Paubäcken project, 30 km south of Barsele, had a 2022 discovery hole of 2.4 g/t gold over 22.5m on its 3rd drill hole, and only 1,100m of drilling has been done to date on it; meanwhile the project actually hosts a gold anomaly footprint larger than that of the Barsele project.

• The 100 km belt we control in Sweden has five current targets (that will likely grow) that bear striking resemblance in terms of geophysics, geochemistry and potential scale, to what we see at Barsele, so we believe we are only scratching the surface in terms of the exploration potential on the Gold Line belt.

• The gold market has been very difficult over the past 2-3 years, and has generally been in a downtrend for 11-12 years….that seems to be changing

• We recently funded the company by incentivizing warrant exercises for our shareholders (over $2.5M raised in July); the Company currently has approximately $3.0M of remaining warrants in-the-money.

• Earlier this week, we released details of new exploration programs at our Swedish projects, including extensive geochemical surveys and geophysical mapping at Storjuktan, BoT drilling on multiple targets at Paubäcken and Klippen, with plans for diamond drilling on priority targets later this year. You can find details on that release here.

Top-Tier Partners and Investors

We continue to work to minimize dilution by aligning our goals of exploration success with the best possible partners and investors. Our partners Agnico, now the second largest mining company in the world by market capitalization, have over a decade of experience on the Gold Line belt, and we feel we are working with the best mining company in the world, and values great jurisdictions and regional plays.

Our investors continue to exercise warrants to fund our exploration opportunities, and we can now expand that excitement to Finland at our Oijärvi Project.

Gold Price Strengthening, Equities Starting to Follow

Spot gold price has reached essentially all-time highs, while gold stocks are just starting to move to higher levels. Due to difficult global economic circumstances, there has been a major divergence in the price of gold and the price of gold stocks in general, with high levels of debt, high interest rates, and weak economic conditions. We expect this scenario to change soon, as we are starting to see a breakout in the VanEck GDX/GDXJ indexes (ETFs). We are clearly in the early innings of this precious metals sector, and we expect some exciting years ahead. Please see the chart below highlighting this point.

Lots of Potential Value to Be Realized in the Near-Term

We feel our valuation today is far below where it should be, barely reflecting the value we have in the Barsele project alone, giving no value to: (i) the additional 80 km of 100%-owned strike potential on the Gold Line belt; (ii) a 100%-owned greenstone belt in Finland at the Oijärvi Project; (iii) having the world’s best mining company as a joint venture partner and 13.3% shareholder; and (iv) being located in a top decile jurisdiction. We have a long way to go before we feel we are being valued appropriately.

Successful X Spaces Live Event

This Monday July 22, 2024, we hosted our first X Spaces live event. FNM was joined by a panel of industry experts and discussed our portfolio of projects in Sweden and Finland, current news in the precious metals sector, recent Company news, and more. There was close to 200 live listeners and there have been over 100 replays of the session just one day after. We encourage you to listen to the replay of the X Spaces, titled “FNM.V & Expert Panel talk Recent Updates, Industry News & More” at the following link: https://twitter.com. Thank you to all who joined. We enjoyed hosting our inaugural X Spaces session and will continue to host these events around future corporate updates.

Thanks & Stay Tuned!

Thank you again to all our shareholders for your investment and support. We look forward to an exciting second half of 2024! We would also like to thank @MiningVisuals for their amazing graphics displayed in this update letter! This Swedish company is making some real, trendsetting mining data visuals and are happy shareholders of FNM.

Best Regards,
The First Nordic Metals Team