FIREWEED ZINC LTD. (TSX-V: FWZ) (OTCQB: FWEDF) is pleased to announce the signing of a binding Letter of Intent for the acquisition of 100% interest in the Mactung Tungsten Project located in Yukon and Northwest Territories, Canada, immediately adjacent to its Macmillan Pass Zinc-Lead-Silver Project.

Highlights

• Mactung is one of the largest and highest-grade tungsten deposits in the world and one of the few potential sources of scale for this critical metal outside of China.
• Approximately 38,000 m of historic drilling¹ outlined a large, high-grade tungsten resource and produced a positive historic feasibility study².
• Mactung is located within the traditional territories of the Kaska Dena and First Nation of Na-Cho Nyäk Dun, and the Sahtú Settlement Area.
• Fireweed hold a right to a 100% interest in the Mactung project through a binding LOI with the Government of the Northwest Territories.
• The Mactung deposit is 13 kilometres north of Fireweed’s Tom deposit and is also accessible by the North Canol Highway providing potential for future synergies.

Executive Statements

Fireweed CEO Brandon Macdonald commented, “While Macmillan Pass continues to be our flagship project, the recent staking of Gayna River and the addition of Mactung turns Fireweed into one of the leading critical mineral exploration companies. We now have not only one of the largest undeveloped zinc resources in the world at our Macmillan Pass Project, but also one of the world’s largest and highest-grade undeveloped tungsten projects at the advanced stage Mactung Project. With both zinc and tungsten being designated as critical minerals by Canada, the US, and the EU, Fireweed is positioned to leverage the transition to a sustainable green economy. We are excited to be advancing both projects under the Fireweed umbrella to not just maximize value for Fireweed shareholders, but to also create increased opportunities for local Indigenous groups and the people of both Yukon and Northwest Territories.”

Mactung Project Overview

Mactung is one of the largest and highest-grade tungsten deposits in the world. It is an advanced stage project with extensive drilling, engineering, metallurgy, geotechnical, and environmental baseline data collected by previous owners that supported a Feasibility study in 2009². Skarn mineralization is developed in carbonate rocks near the contact with a granite intrusion. Historic 2007 indicated resources¹ totaled 33.0 million tonnes grading 0.88% WO₃ (tungsten trioxide) plus historic inferred resources of 11.8 million tonnes grading 0.78% WO₃. The 37.6 km² property is located adjacent to Fireweed’s Macmillan Pass Property (Figure 1) and accessed by the same road providing potential for future project synergies.

Mactung Deposit Location & History

The Mactung Property adjoins Fireweed’s Macmillan Pass Property and straddles the boundary between the Yukon and Northwest Territories. The Mactung tungsten deposit is located 13 km north of the Tom deposit (Figure 1). The Mactung Property can be reached by an access road that joins the North Canol Highway 230 km from Ross River, or by the government-maintained Macmillan Pass airstrip near the Tom deposit.

Mactung was discovered and staked in 1962 by an Amax geologist. Extensive drilling, metallurgical testing, and multiple historical resource estimates were completed over the next twenty years. The property changed ownership several times and was subsequently acquired by the North American Tungsten Corporation (NATC) in 1997. In 2007 NATC published updated mineral resources (see below) and in 2009 published a positive feasibility study (available at www.sedar.com under the NATC profile). The Yukon Environmental and Socio-economic Assessment Board issued a positive screening report for the Mactung Project in June 2014 and recommended it proceed to licensing without review, subject to terms and conditions, which were subsequently adopted and supplemented by the Yukon Government in its September 2014 Decision Document. However, in June 2015 NATC filed for and was granted creditor protection mainly related to operation of their Cantung mine located further south. The GNWT purchased the Mactung Project for $4.5 million in the fall of 2015, and subsequently obtained a Class 4 Mining Land Use Approval in 2020. Fireweed Zinc has now signed a binding LOI for acquisition of the Mactung Project with the GNWT (see details below).

Sustainability Context

Fireweed respectfully acknowledges that the Mactung Project is located within the traditional territories of the Kaska Dena and First Nation of Na-Cho Nyäk Dun, and the Sahtú Settlement Area. For the benefit of present and future generations, Fireweed will conduct mineral development activities in a sustainable manner by working collaboratively with Indigenous groups and local communities, establishing a respectful and safe working environment, achieving a high standard of environmental stewardship, and undertaking studies and implementing measures to address local interests and issues.

Mactung Geology & Mineralization

Mactung is a tungsten skarn deposit located on the eastern margin of the Selwyn basin in the Canadian Cordillera’s Tombstone-Tungsten Belt (TTB). The mid-Cretaceous TTB spans Alaska, Yukon, and NWT, and hosts many other significant mineral deposits. The Mactung deposit is associated with Tungsten suite intrusions that intruded late Precambrian to Palaeozoic, variably metamorphosed clastic and interbedded carbonate rocks of the Selwyn basin. The tungsten mineralization at Mactung is comprised mostly of scheelite (CaWO₄) and is dominated by calcic mineral assemblages associated with abundant pyrrhotite that developed within permeable limestone units of the Cambrian-Ordovician host rocks. Although the previous feasibility study considered only underground development, the vast majority of tungsten mineralization at Mactung can be found within 200 m from surface.

Mactung Historic Drilling and Historic Estimates

Geological mapping and surface sample programs were conducted in the early and mid-1960’s, with drilling beginning in 1968. To date, approximately 38,000 m of drilling in 312 holes have been completed on the property, in addition to multiple historic resource estimates. An adit was opened in 1973 to enable underground exploration and bulk sampling; at least 1,200 metres of lateral underground development has occurred, including bulk samples of 270 tonnes in 1973, 3.5 tonnes in 1979, 650 tonnes in 1983, and 79 tonnes in 2005, enabling extensive metallurgical test work².

Table 1*. Most recent historic mineral resource and mineral reserve estimates from reports on www.sedar.com under NATC profile. (See Cautionary and Background Statements regarding Historic Minerals Resources below.)

Mactung Future Plans

Following final due diligence work and signing of the definitive asset purchase agreement with GNWT, Fireweed will undertake validation programs on previous work in order to support the development of a new mineral resource estimate for the project. Fireweed plans to follow this work with a new PEA on the project in 2023 and will also be evaluating synergies with the Macmillan Pass Project for the future.

About Tungsten

Tungsten is the hardest metal with the highest melting point which makes it an important and often essential metal for use in the automotive, technology, energy, military and manufacturing industries. World tungsten production is dominated by China and there is currently little Western tungsten production which has led tungsten to be listed as a critical mineral by many governments, including Canada. The Canadian government has developed several initiatives to support and advance the exploration and mining of critical metals in Canada, including zinc and tungsten.

Terms of the Mactung Acquisition Agreement

Fireweed and the GNWT have signed a binding Letter of Intent (LOI) under which the GNWT will sell the Mactung Project to Fireweed for a total purchase price of C$15,000,000 staged as follows:

1. Fireweed pays the GNWT the sum of $1,500,000 upon execution of this binding LOI;
2. Fireweed will pay to GNWT an additional $3,500,000 within 18 months upon finalization of the definitive agreement;
3. Fireweed will pay to GNWT an additional $5,000,000 upon Fireweed announcing its intention to construct a mine on either the Mactung Project or any portion of the mineral property interests controlled by Fireweed in the Yukon, commonly known as the Macmillan Pass project; and
4. Fireweed will pay to GNWT an additional $5,000,000 upon Fireweed announcing its intention to construct a mine on the Mactung Project.

The final definitive agreement is targeted before the end of 2022, after which ownership of the project assets will be transferred to Fireweed. Mactung carries an existing NSR Royalty of 4% which is held by a third party, 2% of which can be purchased at any time for $2.5M. This binding LOI does not include responsibility for any assets or liabilities related to the defunct Cantung mine located further south; this LOI is solely related to the Mactung Project (Fig. 1).

Qualified Person Statement

Technical information in this news release has been approved by Brandon Macdonald, P.Geo., and a ‘Qualified Person’ as defined under Canadian National Instrument 43-101.

About Fireweed Zinc Ltd.:

Fireweed Zinc is a public mineral exploration company on the leading edge of critical minerals project development. The Company has three projects located in northern Canada:

• Macmillan Pass Zinc-Lead-Silver Project: Fireweed owns 100% of the district-scale 940 km² Macmillan Pass project in Yukon, Canada, which is host to the Tom and Jason zinc-lead-silver deposits with current Mineral Resources and a PEA economic study (see Fireweed news releases dated 10^th January 2018, and 23^rd May 2018, respectively, and reports filed on www.sedar.com for details) as well as the Boundary Zone, Boundary Zone West, Tom North Zone and End Zone which have significant zinc-lead-silver mineralization drilled but not yet classified as mineral resources. The project also includes large blocks of adjacent claims with known showings and significant upside exploration potential. Plans for 2022 include a large drill program toward expanded mineral resources and an updated PEA to include large new zones of mineralization defined since 2018 including Boundary Zones.
• Mactung Tungsten Project: The Company has a binding Letter of Intent to acquire 100% interest in the 37.6 km² Mactung Tungsten Project located adjacent to the Macmillan Pass Project. Mactung contains historic resources that make it one of the largest and highest-grade undeveloped tungsten resources in the world. Located in Canada, it is one of the rare large tungsten resources outside of China.
• Gayna River Zinc-Gallium-Germanium Project: Fireweed has 100% of the 128.75 km² Gayna River project located 180 kilometres north of the Macmillan Pass Project. It is host to extensive critical minerals mineralization including zinc, gallium and germanium as well as lead and silver, outlined by 28,000 metres of historic drilling and significant upside potential.