The Crag and Rod projects are located in the Craig Belt, a prospective subbelt of the approximately 175 kilometer Rackla Belt, a region known for hosting some of the Yukon’s highest grade silver-lead-zinc and gold mineralizations. (Figure 1). The project represents one of the most compelling high-quality polymetallic exploration opportunities in the district, located in a regionally important structural corridor associated with the Dawson Thrust Fault, a large crustal-scale structure interpreted to control the flow of mineralizing fluids.
The Craig Deposit is a boron-defined silver-lead-zinc asset that remains open at strike and at depth, offering significant potential for resource expansion. Historical drilling has returned numerous high-quality interceptionsincluded intervals greater than 200 g/t silver with significant lead and zinc levels.
Historical diamond drilling in the Craig Deposit intersected high-grade base metal mineralizationincluded (source: Strategic Metals Ltd.):
- 4.26 meters with a grading of 24.1% Zn, 4.3% Pb and 48 g/ton Ag
- 8.31 meters with a grading of approximately 102 g/ton Ag, 4.8% Pb and 4.4% Zn
In addition to base metal mineralization, historical geochemical and mineralogical studies have identified gold-bearing arsenic sulfide assemblages, with rock samples yielding locally elevated gold values up to approximately 9.5 g/ton Au, suggesting an affinity for Carlin-style gold.
In addition to the Craig Deposit, the project includes a 14 kilometer long mineralized corridor with several under-explored zones such as Discovery, Trent, Azure, Nadaleen and Scott. These zones exhibit Mississippi Valley-type (MVT) mineralization and vein-hosted base metal mineralization, as well as Carlin-style pathfinder geochemistry, highlighting strong potential for new discoveries in the broader land package.
The surrounding claims, including Crag and Rod, cover approximately 31,200 hectares of highly prospective land, making Hertz a large, consolidated land position in a proven and mining-friendly jurisdiction. The consolidation of the Craig Deposit with the Crag and Rod project areas significantly strengthens Hertz’s strategic footprint within the Rackla Belt and positions the company for exploration success at the district level. The Rod Project is located adjacent to the Crag Project and extends the future structural corridor. Historical exploration documents multiple mineralization styles, including silver-dominant veins, stratiform base metals, and structurally controlled polymetallic systems. Historical geochemical soil surveys revealed very strong multi-element anomalies, including values of (source: Yukon Exploration and Geology 2009):
- Silver values from 20 to 293 ppm
- Antimony values from 20 to 918 ppm
- Lead values from 1,000 to 20,700 ppm
- Zinc values up to 60,400 ppm
Rock sampling and trenching at several Rod displays provided important historical tests, including up to 193 g/ton Ag with several percent Zn over ~1.0 meters. Together, the Crag and Rod properties form a contiguous district-level land position offering potential for both base and precious metal discoveries. The combination of historic high-grade drill intercepts, multiple mineralization styles, kilometer-scale structural and geochemical trends, and extensive areas lacking modern drill testing supports the exploration potential of the Crag-Rod project areas.
Hertz Energy views the Craig Deposit, together with the broader Crag and Rod projects, as a cornerstone acquisition and a critical step in advancing the company’s portfolio of high-quality, critical mineral exploration assets. High-quality silver deposits are becoming increasingly rare and demand for silver, zinc and lead continues to grow due to their critical role in clean energy, electrification and industrial applications. Located in a politically stable, Tier-1 jurisdiction, the Craig Deposit and wider Crag and Rod properties offer an attractive value proposition, combining high-quality grades, established mineralization and substantial exploration benefits.
Figure 1: Craig Deposit, including Rod and Crag properties, on Rackla Belt, Yukon. Credit: Strategic Metals Ltd.
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Figure 2: Soil geochemistry of Rod and Crag properties. Credit: Strategic Metals Ltd.
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Figure 3: Mineralization of rock properties. Credit: Strategic Metals Ltd.
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Conditions of option agreement
Under the Option Agreement executed on January 27, 2026, Hertz Energy Inc. earning a 100% stake in the Crag and Rod Properties (including the Criag Deposit) from Strategic Metals Ltd. for an aggregate consideration of $2.35 million (the “Transaction”), consisting of $100,000 in cash at closing, 2,500,000 shares of Hertz common stock issued within 10 business days of execution at an estimated value of $0.30 per share, and an additional $1.5 million payable in cash or shares of Hertz common stock (at the Company’s option) on or before (i) ten days after receipt of a Yukon Quartz Mining Land Use Permit to conduct drilling or (ii) the first anniversary of the Agreement. Upon exercise of the Option, Strategic Metals Ltd. retain a royalty of 2.0% Net Smelter Returns (NSR) on all mineral production from the Properties, with Hertz having the right to redeem 50% of the royalty (reducing it to 1.0% NSR) at any time prior to a production decision by delivering 500 ounces of gold or cash equivalent to Strategic Metals Ltd.
The parties to the Option Agreement are in line with the market and no finder’s fees are payable in connection with the Transaction.
Cautionary Statements
All scientific and technical information in this press release is historical unless otherwise stated. Historical results referenced herein have not been verified by the Company’s qualified person and should not be relied upon.
Declaration of qualified person
All scientific and technical information contained in this press release has been reviewed and approved by Paul Ténière, P.Geo., a geological consultant to the Company and considered a Qualified Person for the purposes of NI 43-101.
About Hertz Energy Inc.
The Company is a British Columbia-based junior exploration company primarily engaged in the acquisition and exploration of energy metals mineral properties. The company’s lithium exploration projects include the Agastya Lithium Project in James Bay, Québec. Hertz Energy’s 100%-owned Harriman Antimony Project in Quebec’s Gaspé region and the Lake George Antimony-Gold-Tungsten Project in New Brunswick are part of the company’s growing real estate portfolio.
For more information, please contact Mr. Kal Malhi or view the company’s documents at www.sedarplus.ca.
On behalf of the Board of Directors
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Note Regarding “Forward-Looking” Information
This press release contains certain statements that may be deemed “forward-looking statements.” Forward-looking statements in this press release include, but are not limited to, statements about the Offering and the Company’s expectations with respect to the foregoing. Factors that could cause future results to differ materially from those anticipated in the forward-looking statements contained in this press release include the tax treatment of the FT shares. All statements in this new press release, other than statements of historical fact, that relate to events or developments that the Company expects to occur are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “deposits”, “potential” and similar expressions, or that events or circumstances “will”, “could”, “may”, “could” or “should” occur. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, political and regulatory risks associated with mining and exploration, risks associated with environmental regulations and liability. the possibility of delays in exploration or development activities or the completion of feasibility studies, risks and uncertainties relating to the interpretation of drilling results, the geology, quality and continuity of mineral deposits, risks related to the inherent uncertainty of production and cost estimates and the possibility of unexpected costs and expenses, results of prefeasibility and feasibility studies, the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations, and general economic, market or business circumstances. Investors are cautioned that such statements are not guarantees of future performance and actual results or developments may differ materially from those expressed in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the company’s management on the date the statements are made. Except as required by applicable securities laws, the Company assumes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
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