Core Viewpoint - Probe Gold Inc. has awarded the Environmental Impact Assessment/Statement (EIA/EIS) contract for the Novador Project to WSP Canada Inc., marking a significant step in the permitting process aimed at advancing the project towards production [2][3][6]. Group 1: Environmental Impact Assessment - The EIA/EIS will cover essential environmental aspects such as geochemistry, groundwater and surface water quality, hydrology, air quality, and species with conservation status [2][6]. - Submission of the EIA/EIS to federal and provincial authorities is targeted for Q1 2027, which is crucial for obtaining necessary permits [2][3]. Group 2: Project Overview - The Novador Project is part of a larger land package of 835 square kilometers in the Val d'Or East area of Quebec, which includes four past-producing mines and contains 80% of the company's gold resources in this region [5][7]. - The project is situated in a politically stable and low-cost mining environment, enhancing its attractiveness for development [7]. Group 3: Company Position and Future Plans - Probe Gold is fully funded to advance through the regulatory and permitting process, which is expected to unlock significant value for shareholders [3]. - The company's Novador updated Preliminary Economic Assessment indicates an average annual gold production of 255,000 ounces over a mine life of 12.6 years [9].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported a net loss of $16.1 million, or $0.05 per share, compared to a net loss of $33.5 million, or $0.11 per share for the same period in 2023, indicating a significant improvement in financial performance [66] - Exploration and evaluation expenses decreased to $8.3 million from $26.7 million in Q4 2023, primarily due to the completion of Campaign 8 and reduced costs in environmental studies [66][67] - General and administrative expenses increased to $8.1 million from $6.6 million in Q4 2023, mainly due to higher share-based compensation and consulting costs [67] Business Line Data and Key Metrics Changes - The company successfully completed its first integrated collection system test since the 1970s, lifting over 3,000 tons of nodules to the surface, demonstrating advancements in operational capabilities [15] - The company has conducted 23 offshore research campaigns, significantly more than most contractors, showcasing its commitment to extensive research and development [16] Market Data and Key Metrics Changes - The company highlighted the geopolitical significance of deep-sea mining, noting that China is actively pursuing deep-sea mining partnerships, which could impact market dynamics and competition [30][31] - Increased interest from major economies in deep-sea resources could positively affect the total addressable market for the company's services [31] Company Strategy and Development Direction - The company announced a strategic shift to pursue commercial production through the U.S. regulatory framework, specifically the Deep Seabed Hard Mineral Resources Act (DSHMRA), as a response to delays in the International Seabed Authority (ISA) mining code [19][20] - The company aims to leverage its extensive environmental data and research to support its applications under the DSHMRA, positioning itself as a leader in responsible deep-sea mining [18][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's readiness to begin production, citing a wealth of environmental impact data and a robust regulatory framework under DSHMRA [18][19] - The management acknowledged the challenges posed by the ISA's delays but emphasized the potential for the U.S. to regain leadership in the deep-sea mining industry [32][34] Other Important Information - The company has gathered nearly one petabyte of environmental data, which is expected to support its applications and enhance public trust in its operations [59] - The company entered into a registered direct offering, issuing 19.9 million common shares and 9.95 million Class B warrants, raising gross proceeds of $19.9 million [69] Q&A Session Summary Question: Clarification on DSHMRA and License Areas - The company clarified that the DSHMRA allows access to high seas minerals, and while specific areas for application are still under discussion, they aim to utilize prior work done in the region [73][76][78] Question: Participation of Allseas in DSHMRA - Management confirmed that Allseas can legally participate as a partner, provided the production vessel is U.S. flagged [81] Question: NOAA Process vs. ISA Pathway - The company views the NOAA process as a new, advantageous path that complements the ISA process, leveraging existing environmental work [87][88] Question: Timeline for Economic Study - The economic study is expected to be completed in the first half of the year, ahead of the applications to the U.S. [96] Question: Environmental Impact Study Completion - The environmental impact study is progressing alongside the economic feasibility study, with data collection ongoing [100][102] Question: Termination of Contract with Third Sponsor State - The decision to terminate the contract was based on prioritizing resources towards more promising blocks, NORI and TAMO, which require focused investment [106][108] Question: Service Business Revenue Expectations - Management expressed optimism about the service business, anticipating revenue opportunities in the coming years due to the company's expertise and ongoing inquiries [110][112]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported a net loss of $16.1 million, or $0.05 per share, compared to a net loss of $33.5 million, or $0.11 per share for the same period in 2023, indicating a significant reduction in losses [66] - Exploration and evaluation expenses decreased to $8.3 million from $26.7 million in Q4 2023, primarily due to the completion of Campaign 8 and lower costs in mining technology and process development [66][67] - General and administrative expenses increased to $8.1 million from $6.6 million in Q4 2023, mainly due to higher share-based compensation and consulting costs [67] Business Line Data and Key Metrics Changes - The company successfully completed its first integrated collection system test since the 1970s, lifting over 3,000 tons of nodules to the surface, and processed them into high-grade nickel-copper-cobalt alloy and manganese silicate [15] - The company has conducted 23 offshore research campaigns, significantly more than most contractors, demonstrating its commitment to environmental studies and resource evaluation [16] Market Data and Key Metrics Changes - The company is preparing to submit applications for commercial production under the U.S. regulatory framework, which has been in place since the 1980s, indicating a strategic shift in its operational approach [19][20] - The geopolitical landscape is shifting, with increased interest in deep-sea mining from countries like China, South Korea, Japan, and India, which could positively impact the total addressable market for the company's services [31][34] Company Strategy and Development Direction - The company aims to leverage its extensive environmental data and research to pursue commercial production through the U.S. regulatory framework, which is viewed as more favorable than the current ISA process [19][42] - The focus is on responsible extraction of polymetallic nodules with minimal environmental impact, positioning the company as a leader in sustainable deep-sea mining [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's readiness to begin production, citing extensive environmental data and a well-designed system to minimize impacts [18][59] - The management highlighted the importance of U.S. leadership in the deep-sea mining industry, especially in light of geopolitical tensions and the need for metal independence [33][34] Other Important Information - The company has gathered nearly one petabyte of environmental data, which is one of the largest datasets compiled for deep-sea mining, supporting its application for commercial recovery [59] - The company has initiated a formal process of pre-application consultation with NOAA, which is expected to facilitate the permitting process [21][46] Q&A Session Summary Question: Clarification on DSHMRA and license areas - Management clarified that the U.S. will argue for access to high seas under the Freedom of the Seas Treaty, and the specific areas for application are still under discussion [75][77] Question: Participation of Allseas in the U.S. application - Management confirmed that Allseas can legally participate as a partner, provided the production vessel is U.S. flagged [82] Question: Impact of NOAA process on permitting - Management indicated that the NOAA process is viewed as an advantageous new path, not a complete shift from the ISA pathway [88] Question: Timeline for economic study and application submission - Management expects the economic study to be completed in advance of the U.S. applications, which are planned for June [97] Question: Environmental impact study completion - Management stated that the environmental writing is progressing rapidly and is expected to align with the economic feasibility study [102] Question: Termination of contract with a third sponsor state - Management explained that the decision was based on prioritizing resources on more promising blocks, NORI and TAMO, which require focused investment [106][108] Question: Future revenue from service business - Management expressed optimism about the service business, highlighting the expertise built around environmental work programs and resource definition [112]