Riverside Resources

Investor Insight

Despite its extensive portfolio and numerous exploration successes, Riverside Resources remains significantly undervalued compared to its peers. With a market capitalization of approximately C$10 million and no debt, the company offers a compelling investment opportunity for those looking to gain exposure to the mining sector.

Overview

Riverside Resources (TSXV:RRI) is a Vancouver-based exploration and project generation company focused on precious and base metals, with a unique business model designed to minimize financial risk while maximizing exploration opportunities.

Founded in 2007, the company has established a strong portfolio of properties across North America, particularly in Canada and Mexico. With more than 17 years in the industry, Riverside Resources leverages its "Data First" strategy, which uses data analytics and historical mining information to identify and acquire high-potential mineral properties. This methodical approach is complemented by a business model that relies heavily on joint ventures and partnerships, allowing the company to explore multiple projects simultaneously with minimal shareholder dilution. Riverside Resources has successfully advanced over 80 projects using more than $85 million in partner-funded exploration, showcasing its expertise in exploration and project development.

One of Riverside's key strengths is its diversified portfolio, which spans different geographies and commodities, including gold, silver, copper and rare earth elements (REE). The company's projects are located in Ontario and British Columbia in Canada, and across Mexico, focusing on areas with known mineralization and existing infrastructure. Riverside is well-capitalized, with over $5 million in cash on hand, no debt, and a well-established royalty portfolio. This strong financial position allows the company to continue exploring new opportunities while reducing operational risks.

Riverside has a proven track record of creating value for its shareholders through spin-outs and royalty transactions, having completed seven such deals since its inception. The company continues to seek out new opportunities for joint ventures, partnerships and royalty agreements, which will help to unlock further value from its portfolio. With several key exploration programs underway in 2024, Riverside is poised for a breakout year.

Company Highlights

• Riverside Resources has successfully advanced over 80 exploration projects using more than $85 million in partner-funded exploration.
• Riverside’s Ontario gold projects are strategically located near Equinox Gold’s Greenstone Mine, offering significant potential for future development or acquisition.
• The Cecilia gold-silver project in Sonora, Mexico, is advancing through a partner-funded drilling program with Fortuna Silver Mines, offering significant discovery potential.
• With over C$5 million in cash and no debt, Riverside Resources is financially strong, ensuring sustained exploration activity.
• The company has completed seven successful spinouts and royalty transactions over its 17 year history, creating substantial value for shareholders.
• The company’s business model minimizes financial risk by partnering with larger companies, enabling multiple simultaneous exploration projects.

Key Projects

Ontario Gold Projects

Riverside Resources operates its Ontario-based gold projects through its wholly-owned subsidiary, Blue Jay Resources. These projects are located in the Western Abitibi region, one of Canada's most prolific gold-producing areas. The company's assets are situated near Equinox Gold's Greenstone gold mine, one of the country's largest open-pit gold mines. This strategic location provides significant potential for future development or acquisition, as the Greenstone mine is expected to produce more than 390,000 ounces of gold annually for the first five years of its 15+-year mine life. As this mine nears the end of its life, Riverside's nearby properties could provide valuable ore, potentially making them attractive targets for acquisition by Equinox or other major players in the region.

The Ontario portfolio includes three significant gold assets: the Pichette, Oakes and Duc projects. The Pichette project, located near the Greenstone gold mine, has similar geological units and structures to the Hardrock deposit at Geraldton, one of the most significant gold deposits in the region. Pichette has already seen historical drilling that intercepted gold mineralization, with additional targets identified through recent drone magnetics surveys and field prospecting.

The Oakes gold project lies in the Archean Greenstone Belt of the eastern Wabigoon terrane that hosts several large-scale gold deposits. The project has yielded promising results from recent drilling, with gold assays up to 8 grams per tonne (g/t) and surface samples showing greater than 30 g/t gold. This project also benefits from significant past exploration, with over $5 million invested to date.

The Duc gold and critical metals project rounds out Riverside's Ontario portfolio. Situated in a highly prospective area which has been previously explored for nickel and PGM’s, this project has excellent infrastructure, with road access from the Trans-Canada Highway and proximity to past-producing mines. The Duc project offers both gold and critical metals potential, making it a valuable asset in Riverside's growing portfolio.

Mexico Gold and Silver Projects

Riverside Resources also has a strong presence in Mexico, particularly in the state of Sonora, where it operates several gold and silver projects. The Cecilia project is a district-scale gold and silver low-sulfidation epithermal system, located near the town of Agua Prieta. This project is one of Riverside's flagship assets, featuring over 60 square kilometers of exploration territory with multiple high-priority targets. Riverside has partnered with Fortuna Silver Mines to advance exploration at Cecilia, with a drilling campaign which began in the fall of 2024. Fortuna's option agreement with Riverside includes a significant work commitment, with planned expenditures of $3.75 million to earn a 51 percent interest in the project, and the potential to earn up to 80 percent by spending $6 million. This partnership represents a significant catalyst for Riverside, as a major discovery at Cecilia could add further value to the company’s shareholders.

The Union project, also in Sonora, is another promising gold and silver asset. Situated in close proximity to several major mines, including Noche Buena, La Herradura and Cerro Colorado, the Union project has already yielded high-grade rock chip samples, with results as high as 59.8 g/t gold and 833 g/t silver. Historical production from the area averaged between 7 and 20 g/t gold and 300 g/t silver, highlighting the project's potential for future exploration success. Riverside continues to explore joint-venture and partnership opportunities to advance this project, making it a key component of the company's Mexican portfolio.

Rare Earth Element and Copper Projects

In addition to its gold and silver assets, Riverside Resources has expanded into rare earth elements (REE) and copper exploration. The company holds several REE projects in British Columbia, Canada, including the Revel and Taft projects, both of which are located in highly prospective carbonatite belts. These projects are part of Canada's Critical Minerals Strategy, which aims to secure the supply of minerals essential to the country's energy transition. REEs are crucial for the production of renewable energy technologies, such as wind turbines and solar panels, as well as advanced batteries and semiconductors. Riverside's exploration programs at Revel and Taft are ongoing, with results expected in the near future.

Riverside is also pursuing copper exploration in Mexico, with the Ariel copper-gold project being one of the most promising assets. This project is located in a highly prospective porphyry copper district, within sight of Mexico's second-largest copper mine, La Caridad. The Ariel project spans over 16 square kilometers and is fully permitted for drilling, making it a turnkey exploration opportunity. Copper is a key metal in the global energy transition, with demand expected to rise significantly in the coming years due to its use in electric vehicles, renewable energy infrastructure, and power transmission.

Undervalued and Well-positioned for Growth

Riverside Resources remains significantly undervalued compared to its peers, given its extensive portfolio and exploration successes. With a market capitalization of approximately C$10 million and no debt, the company offers a compelling investment opportunity for those looking to gain exposure to the mining sector. Riverside's Project generator model, which minimizes financial risk by partnering with larger companies to fund exploration, provides shareholders with significant upside potential. The company's strong balance sheet, combined with its diversified portfolio of assets in stable mining jurisdictions, makes it well-positioned for future growth.

Board and Management

John-Mark Staude – President and CEO

John-Mark Staude holds a PhD in economic geology and has over 20 years of diverse mining and exploration experience in precious and base metals. He earned a Masters of Science from Harvard University in 1989 and a PhD in Economic Geology from the University of Arizona in 1995. Held positions at Kennecott, BHP-Billiton, and most recently Teck Cominco. His technical and managerial experience spans more than 30 countries in diverse geologic environments. Staude is also a director and chairman of Capitan Mining.

Freeman Smith – Vice President, Exploration

Freeman Smith has 18 years of experience in the minerals industry focused on generating and evaluating exploration properties primarily in the Americas. Smith has worked primarily with prospect generators and worked in Mexico with the prospect generator (Oro Gold). Smith brings experience in Latin America, Northern Canada and Ontario-Quebec (Integra).

Rob Scott – CFO

Rob Scott is an accomplished professional with more than 20 years of experience In accounting and corporate compliance, corporate finance, and merchant and commercial banking. He is a CPA, CA and a CFA charterholder and has spent the last 15 years as a senior officer and director of a number of issuers listed on the TSX Venture Exchange. In that time he has helped raise in excess of $200 million in equity and has gained extensive experience in initial public offerings, reverse takeovers, corporate restructuring and mergers, and acquisitions, as well as cost-effective management of operations.

Ben Connor – COO and Data Strategist

Ben Connor received an honors degree in geographic science from the University of Western Ontario, followed by an advanced diploma in Geographic Information Systems from the British Columbia Institute of Technology. Connor further developed his technical and managerial expertise at companies such as BHP Billiton and Golder Associates before joining Riverside as a consultant in 2007. Connor has kept Riverside at the forefront of technology and data compilation; and has played an integral role in assisting and advising senior management on asset acquisitions, strategic partnering and asset divestments that have contributed to the company’s overall success.

Cruz Paez – Chief Geoscientist

Cruz Paez has more than 17 years’ experience in exploration and mining geology in Mexico and has been involved with the discovery and delineation of several mineral deposits that were developed into operating mines. Paez held the position of vice-president of exploration for Azure Minerals and more recently exploration manager at Gold Candle.