January 10, 2020

Dear Investor,

Happy New Year and New Decade from the GoldSpot team. We are excited for a New Year of investments in the metals and mining space and especially happy what gold has done over the past year.

GoldSpot has been preparing for the rise in gold and commodity prices over the past year by making strategic investments in the space. Since the beginning of 2019, GoldSpot has expanded its target market to junior explorers. The company invests and acquires royalties in data-rich exploration companies, which in turn retain GoldSpot and its team of 25 geologists and data scientists (including eight PhDs) to stitch, level and reinterpret a unique combination of both public and the explorer’s own proprietary data. GoldSpot aims to bring together all available data and apply artificial intelligence to identify patterns and areas with a high chance of mineralization.

Since including junior explorers within its mandate, GoldSpot has invested in:

Manitou Gold Inc (TSXV:MTU) – Most recently announced the strategic financing by Alamos Gold Inc and O3 Mining Inc for an aggregate total of $3 million. Like our investment thesis, both Alamos and O3 recognize the potential and geology of the Goudreau-Renabie area properties. As part of the agreement, Alamos is now part of a joint exploration committee to advise on exploration. With the funds, Manitou plans on accelerating exploration across its entire Goudreau Project portfolio, including drilling high priority targets.

Pacton Gold Inc (TSXV:PAC) – Recently closed $4.9 million in the first tranche of an announced $6 million financing. Pacton’s initial 10,000-metre drill program is under way at the Boyden prospect, where multiple high-grade samples have been recovered with channel and surface sampling. The program will now include a total of four exploration prospects that all lie within the Madsen-Dixie fault corridor.

Group Ten Metals Inc (TSXV:PGE) – Group Ten has just completed their 2019 drilling program and the company is building on data from more than 28,000 meters on drilling. GoldSpot is excited to collaborate with Group Ten and examine the extensive geological and geophysical datasets with machine learning and proprietary algorithms. In addition to drilling extensive geological sampling, mapping and soil geochemistry has been completed.  The data collected makes it ideal for our geoscience and machine learning experts to clean, unify and analyse find new and expand targets.

Quebec Precious Metals Corporation (TSXV:CJC) – CJC is now the premier explorer in James Bay and we imagine will continue consolidating the district on the back of its flagship Sakami Gold Project. Newmont  sees potential in CJC, investing in the last round of financing and upping its ownership to 19.9%. Goldcorp, pre-merger with Newmont, invested $3.7 million into CJC last summer at $0.61 per share to secure potential feed for Eleonore, a mill that is running under capacity. Sakami has incredible data that GoldSpot is excited to make use of.

Tristar Gold Inc. (TSXV:TSG) – Tristar’s PEA outlined several areas for future work to enhance and continue to de-risk the project and GoldSpot is currently working with Tristar to outline further exploration potential of the Castelo de Sonhos (CDS) property. CDS’ potential was validated in 2018 when TriStar announced the largest financing in the company’s history, US$8 million from Royal Gold. After significant due diligence, GoldSpot invested in its most advanced project to date.

Northstar Gold Corp (CSE:NSG)GoldSpot’s most recent investment – Northstar’s flagship Miller Gold Property is located on a major 1st order fault structure (Catharine Fault) off the Kirkland/Cadillac-Larder Breaks. The property hosts similar age, nature and style of gold mineralization Kirkland Lake’s nearby Macassa South Mine Complex. Potential is significant and with the IPO now complete, Northstar will begin its Phase I of the exploration program, including surface stripping, mapping, sampling, 3D IP geophysics and 3,000 metres of diamond drilling to upgrade the historic gold estimate and test a number of other near surface, high-grade vein and intrusion-hosted bulk tonnage gold targets.

GoldSpot currently holds the following royalties:

  • Pacton Gold Inc. — 0.25-per-cent NSR (net smelter return royalty) and $1-million option to buy another 0.5-per-cent NSR.
  • Manitou Gold Inc. — 0.25% NSR and $1-million option to buy another 0.5% NSR
  • New Found Gold Corp. — 0.5% NSR
  • One Bullion Ltd. — 0.25% NSR

GoldSpot will continue to pursue its strategy of using artificial intelligence and traditional domain expertise to make optimal use of all available exploration data. The company aims to generate revenues from its work with producers to cover the majority of its G&A (general and administrative) and R&D (research and development) expenses, while continuing to invest and acquire royalties in juniors to which it will provide access to its robust team of geologists and data scientists.

As of September 30, 2019, GoldSpot has $5.6 million in cash and another $2.8 million in investments. We expect 2020 will be a banner year in terms of revenue and deployment of cash into investments.

GoldSpot has made incredible headway in the development of its workflow and technology. This was validated by several clients. In October, Gran Colombia successfully drill tested preliminary findings in GoldSpot’s analysis. Based on its exploration results and strong production, Gran Colombia was able to raise $15 million from Eric Sprott and will now embark on a 70,000-meter drill program at Segovia over the next eighteen months.

GoldSpot and Yamana Gold also completed a machine learning collaboration in the area surrounding the El Penon mine site using, multidisciplinary, geological, geophysical and geochemical datasets. The study was successful in identifying known mineralized areas in the mine in blind tests and is now playing a significant role in aggressive ongoing exploration efforts.

In terms of academic achievements, GoldSpot announced it has commenced a four-year collaboration with the Metal Earth project, a $104 million applied R&D program led by the Mineral Exploration Research Centre (MERC) at Laurentian University.

GoldSpot’s collaboration with Metal Earth will involve the examination of extensive geological and geophysical datasets to develop algorithms that will quantify the prospectivity and metal endowment across the Precambrian regions of Canada.

Lastly, GoldSpot has become a bronze sponsor to the Vector Institute for Artificial Intelligence. The Vector Institute aims to build a world class ecosystem of AI companies, and membership is reserved for elite companies that undergo a rigorous screening process. GoldSpot not only passed these tests with flying colors, but we captivated them with our unique value proposition and deep industry knowledge in both mining and finance.

The Vector Institute is an independent, not-for-profit corporation dedicated to research in the field of artificial intelligence (AI), excelling in machine and deep learning.  It was founded by Geoffrey Hinton, the Father of AI, in order to bring global attention to the world class talent, research, and AI industries in Canada.  It is closely affiliated with U of T, but most importantly has become the biggest name in AI foundations in Canada in a short three years.  It’s most notable partner was Layer 6 – sold to TD Bank for $100M.

As part of this sponsorship, we get access to AI researchers 8 times a year, invites to exclude events, and access to the AI tech crowd previously untapped by GoldSpot.  Their other sponsors have been heavily vested in by Valley VCs.  In return, we must participate in job fairs, speak at Vector events, attend talks and showcase GoldSpot – all things we are already doing.  Vector’s brand, mission and vision align with our own – and now by being associated with Vector, we have gotten an AI stamp of approval from the biggest voice in AI in Canada.

GoldSpot’s 2020 strategy will be to maximize our innovation and our proof-of-concept success by deploying our technology and team on more projects and datasets. By doing so, we increase the number of market catalysts that can have a substantial affect on our share price and to slingshot our technology, team and approach as the market standard.

We are always available by phone at 647-345-7720 should you have any questions, or by email at denis@goldspot.ca

Sincerely,

Denis Laviolette

President and CEO