Apex Resource Inc’s wholly owned Jersey-Emerald property is located in southeastern British Columbia, 50 kilometres south of the town of Nelson and 8 kilometres southeast of the community of Salmo. It consists of 120 mineral claims and 44 crown grants over an area of approximately 17,500 hectares. The property encompasses three historic mines; the 2,400 t/d Jersey Lead-Zinc Mine which operated from 1949 to 1970, the 350 t/d Emerald Tungsten Mine which operated intermittently from 1942 to 1973 and the 25 t/d Emerald Lead Mine which operated from 1919 to 1926. The property includes 1,100 acres of freehold land in four adjoining land parcels over the historic mine-workings.

There are four totally separate metallic deposits located on the property. Each with unique geologic characteristics:

1. In the Jersey and Emerald Pb-Zn mines stratiform lead-zinc deposits of pre-Jurassic age are hosted in dolomitized carbonate rocks of Cambrian age. 
2. Tungsten mineralization in five deposits, the Emerald, Feeney, Invincible and Dodger mines and the recently discovered East Emerald deposit occur as massive sulfide lenses (Emerald style mineralization) and stratiform replacement deposits (Dodger style mineralization) in limey sediments marginal to Cretaceous granites.
3. Porphyry style molybdenum mineralization occurs within the Cretaceous granites and extends into the adjacent tungsten deposits.
4. Gold and gold-bismuth zones as veins and silicified skarn zones occur adjacent to the tungsten and molybdenum zones near the margins of the Cretaceous granites.

The Jersey-Emerald property has exceptional infrastructure. The deposits are just 45 kilometres by highway from Teck’s Lead-Zinc Smelter facility at Trail, BC. A skilled labor force for mining and exploration is available in the nearby towns of Salmo, Nelson, Trail and Castlegar.  Salmo was the townsite for the former tungsten-zinc mines. There is more than 150 million dollars in underground development work, including approximately 5 km of haulage tunnels, already in the deposits. There are power lines and a natural gas pipeline crossing the property.

The historic Jersey Emerald Mine property is subject to a 3% NSR, which can be reduced to 1.5% by making additional cash and share payments totaling $500,000 and 50,000 shares on completion of a positive feasibility study. The property is subject to annual advance royalty payments of $50,000. The historic Invincible Mine is subject to a 2% Net Smelter Return royalty ("NSR"), which may be reduce to a 0.5% NSR by the payment of $150,000 to the Seller after the completion of a positive feasibility study. There is an Annual Advance Royalty Payment of $3,000.

The Jersey Emerald property is located in southeastern British Columbia at latitude 49°06'N and longitude 117°13'W (NTS 82F/3), 10 kilometres southeast of the community of Salmo. The claims cover an area of approximately 17,500 hectares between the Salmo River on the west and the top of Nevada Mountain on the east, and are bounded by Hidden Creek on the north and the South Salmo River on the south. Year round gravel roads and power lines cross the property and water is plentiful. Underground workings of the historic Jersey and Dodger deposits are in excellent condition allowing for future underground access with little rehabilitation.

The Jersey Emerald property lies near the south end of the Kootenay Arc and is underlain by rocks of the Cambrian Laib Formation and the Ordovician Active Formation. The Laib Formation is comprised of mixed carbonates and pelites that have been subdivided into the Truman Member brown argillites, the Emerald Member black argillites and the Reeves Member limestones.

The eastern part of the property has historically been mapped as a much younger (Ordovician) Active argillite, however recent work by the Company indicates that the contact may in fact be conformable and that the Active Formation appears to be geochemically identical to the Laib Formation Emerald Member black argillites. Three Cretaceous granitic stocks intrude the Jersey mine rocks.

The historic Jersey Mine was the second largest zinc-lead mine in British Columbia and the Emerald Tungsten Mine was the second largest tungsten mine in Canada. The Jersey-Emerald area was initially staked for gold in 1896. Exploration continued and in 1906 the Emerald Lead Deposit was discovered. A 25-ton mill was erected in 1919 by Iron Mountain Ltd and operated until 1926. In 1938 tungsten and molybdenite mineralization was discovered and in 1942 the 350 ton per day Emerald Tungsten Mine was put into production for the war effort by the Federal Government. Operations were suspended in 1943 when the war demand for tungsten eased. In 1947 Canadian Exploration Ltd. a subsidiary of Placer Dome purchased the property of Iron Mountain Ltd. Tungsten production recommenced in 1947 and lead-zinc in 1949.  Lead and zinc concentrate was produced from two zones:  the Jersey and the Emerald Pb-Zn deposits.  Tungsten concentrate was produced from four zones:  the Emerald, Feeney, Invincible and Dodger deposits.  Production continued until September 1973 when the mine was closed due to low metal prices.

In 1993 the property was acquired by Apex Resources Inc. Since 1993 additional exploration has included 34,870m of diamond drilling in 226 drillholes, ground and airborne geophysical surveys, soil geochemical surveys, prospecting, excavator trenching and rock chip sampling.

Canadian Exploration Ltd. internal reports and government records (BC Minfile 082FSW009) show that over the mine life 7,968,080 tons of lead-zinc ore grading 1.95% Pb and 3.83% Zn, were mined and milled from the Jersey and Emerald lead-zinc deposits. In the four tungsten mines 1,597,802 tons of tungsten ore grading 0.76% WO3 were mined and milled.

The central claims area around the Jersey and Emerald mines are considered brownfields, and contain open mining cuts, underground mine access portals and waste dumps.

Apex Resources Inc. has prepared several NI43-101 compliant resource estimates for Jersey-Emerald since acquiring the property. The following reports are more than 5 years old and are therefore considered historic:

• In 2006 resource estimates were prepared for remnant tungsten mineralization in the Dodger and Invincible deposits using 6,559 tungsten assays from 4,593 historic development diamond drill holes.
• In 2009 a resource estimate was prepared for remnant mineralization in the Emerald tungsten deposit based on 36,955 metres of historic development diamond drilling in 633 holes.
• In 2010 a resource estimate was prepared for remnant lead and zinc mineralization in the Jersey Pb-Zn Mine based on 160,000 metres of diamond drilling in 4,866 historic development holes and 176 exploration holes drilled by Apex.
• In 2007 a scoping study was prepared for the tungsten mineralization by Wardrop Engineering Inc.

In September 2021 Apex. filed an updated Tungsten Resource Estimate for the Jersey Project.  The study was a total deposit resource that included the Emerald, East Emerald, Invincible, Dodger, East Dodger and Dodger 4200 tungsten zones. The study involved reviewing 28,997 metres of diamond drilling in 241 holes on the property. Historic development drill holes were not used in this resource estimate.

 The results of the study confirm a significant tungsten (WO3) resource on the property with associated gold and molybdenum. The report shows an Indicated Resource of 1,472,803 tonnes at a grade of 0.173% WO3, 0.050g/t Au and 0.021% Mo.  There is an additional Inferred Resource of 5,128,045 tonnes at a grade of 0.227% WO3, 0.081g/t Au and 0.026% Mo. The study uses current metal prices and assumes cut-off grades of CDN$25 for open pittable mineralization and CDN$60 for underground.

Table 1 below summarizes the total model resource for the Jersey-Emerald Tungsten Project which has an effective date of July 26, 2021.

Table 1           Jersey-Emerald Tungsten Resource Estimate – Total Project

The updated Technical Report was prepared by Sue Bird, P.Eng., a Geological Engineer with Moose Mountain Technical Services (MMTS). Sue Bird is a Qualified Person (QP) as defined in National Instrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101).

The QP concludes that further drilling is required to upgrade the classification of the known mineralization.  A two phase $1.3M work program to infill the WO3 mineralized zones, potentially add to the associated Mo and Au zones and to better define the remaining Pb-Zn mineralization is recommended.