Archer Exploration to acquire Grasset nickel deposit from Wallbridge Mining

Archer Exploration is pleased to announce that it has entered into a definitive asset purchase agreement dated July 12, 2022 with Wallbridge Mining Company. Pursuant to the Asset Purchase Agreement, Archer will acquire all of Wallbridge's nickel assets, rights and obligations located in Quebec and Ontario. Archer is backed by Inventa Capital Corp., a Vancouver-based merchant bank founded in 2017 with the goal of discovering and funding opportunities in the resource sector. The Nickel Assets consist of 2,046 mining titles covering approximately 67,000 hectares and include a 100% interest in the Grasset nickel sulphide project located in Quebec Pursuant to the Asset Purchase Agreement, Archer will acquire the Nickel Assets from Wallbridge in exchange for 198,635,786 Archer Shares at a deemed value of C$0.27 per Consideration Share for a purchase price of approximately C$53.6M. In addition to issuing the Consideration Shares, Archer will also grant Wallbridge a net smelter return royalty on production from the Grasset Project. Wallbridge has agreed to complete a partial distribution of Consideration Shares by way of a reduction of stated capital to its shareholders on a pro rata basis within 60 days of closing of the Transaction. Following the Share Distribution, Wallbridge will own 19.9% of the Archer Shares following closing of the Transaction and related matters. The Transaction will constitute a "Fundamental Change" of Archer within the meaning of the policies of the Canadian Securities Exchange. Completion of the Transaction is subject to a number of conditions precedent, including, but not limited to: acceptance by the CSE and receipt of other applicable regulatory approvals; receipt of approval of the shareholders of Archer; completion by Archer of a private placement for gross proceeds of at least C$10,000,000; and certain other closing conditions customary for a transaction of this nature. Upon completion of the Transaction and the Share Distribution: current shareholders of Archer will hold approximately 15% of the Archer Shares on a fully-diluted in the money basis, and Wallbridge and shareholders of Wallbridge will hold approximately 85% of the outstanding Archer Shares on a fully-diluted in the money basis. In connection with the Transaction, Archer entered into a finder's fee agreement dated as of June 10, 2022 with two arm's length parties. As compensation for the Finders' introduction of Archer and Wallbridge, should the Transaction be completed, Archer will pay to the Finders collectively a number of Archer Shares equal to 2.5% of the number of Consideration Shares. The finder's fee is subject to approval of the CSE. Any Archer Shares issued to the Finders will be subject to escrow and released over a period of two years after closing of the Transaction. The Finders have agreed to notify Archer of any potential disposition of Archer Shares and allow Archer the opportunity to designate the purchase of all or any portion of such shares. In connection with closing of the Transaction, Archer and Wallbridge will enter into a royalty agreement, an investor rights agreement, and an exploration cooperation agreement.