CSE: SASY | OTCQB: SSYRF | FSE/SWB: 4E7

October 28, 2021

Dear Sassy Shareholder:

I hope this shareholder update finds you and yours weathering the ongoing pandemic in good health. On behalf of Sassy’s Officers and Board of Directors, I’m happy to provide the Sassy community with this review of a successful first year (plus a couple of months) of our existence as a publicly traded company, along with a look ahead to what is coming up over the next several months. We are pursuing an exciting vision for Sassy, one that is anchored by a strong determination to create shareholder wealth.

August 17, 2021, marked the first anniversary of Sassy’s initial listing on the CSE and the Company has grown by leaps and bounds in the 14+ months since that first day of trading. The CSE listing in August 2020 was quickly followed by a listing on OTCQB (OTC: SSYRF) in the United States and on the Frankfurt Stock Exchange (FSE: 4E7) in Germany.

Our share price has been volatile, with strong upside moves during Q4 2020 and again during Q2 2021, but SASY has consistently found support near its August 17, 2020, opening price in the 40’s, and prudent management has kept our attractive share structure intact.

2020 Was Formative – 2021 Has Been Transformative

Below are a few of the highlights from the last 14 months. I’ll expand on these and share some of what the Sassy community has to look forward going into year-end and 2022.

    • During the 2020 field exploration season at the Foremore Gold-Silver Project, Sassy completed a Phase I drilling program along the More Creek VMS Corridor which produced promising results. Successful Phase II drilling in 2020 resulted from the rapid development of the Westmore Gold-Silver Discovery Zone where a handful of 2019 surface samples blossomed into a legitimate early-stage discovery of a grassroots target;
    • Early 2021 saw the completion of a geochronological study which confirmed the instrusive and associated mineralization at Westmore is from the same geological time period as other significant deposits in the Eskay Camp region, while the 2021 field season at Foremore kicked off with the execution of the first-ever property-wide high resolution airborne VTEM/Mag Survey. Later, over the summer, another series of diamond drill holes were completed at Westmore at lower elevations to the south and east of the first six holes drilled at this discovery in 2020. Additional sampling and geological mapping were also carried out across Westmore and other areas of the Foremore Property. Given the backed-up lab situation that all companies are facing, we ask shareholders for patience in terms of delivery of results. We’re very confident we’re on the right track with the Foremore Project;
    • Over the winter of 2020-2021 Sassy entered into four option agreements in Newfoundland, assembling 9,032 claims, which constituted the largest claim position on the island at the time. Each of the Company’s 8 project areas in Newfoundland were selected based on identified structures, historical geophysics and geochemistry, and proximity to other significant developing discoveries throughout the Central Newfoundland Gold Belt. We were an “early mover” into Newfoundland, just ahead of the broader Gold Rush that brought in multiple new players. There’s every reason to believe that this Gold Rush will be a multi-year event, with several mines possible this decade. Think of Newfoundland as the Eskay Camp 30 years ago – we believe we are going to witness massive discovery growth;
    • With this strategic move into Newfoundland, giving us year-round exploration opportunities, Sassy established critical partnerships with famed prospector Shawn Ryan and GroundTruth Exploration, plus other key players on the island. Shawn’s experience and years spent researching Newfoundland, combined with the infrastructure, processes and staffing put in place by GroundTruth, allowed Sassy to hit the ground running in Newfoundland. As of today, we have already collected more than 16,000 soil samples in 2021. We look forward to sharing initial assay results soon, certainly within Q4;
    • The scale of the property package assembled in Newfoundland prompted the decision to spin out Gander Gold Corporation as a standalone entity. As a result, Gander was able to perform its own private placement financings in 2021 without diluting the Sassy share structure. Gander provides Sassy shareholders an attractive “double down” opportunity, through the direct ownership of Gander Gold shares and Sassy’s 49.5% equity stake in Gander Gold. The spinout structure is further detailed below;
    • Perhaps a bit lost in the excitement regarding Newfoundland this year is the fact that Sassy optioned its Nicobat claims to a private company, Max Power Mining Corp., which we expect will be trading in the near future. Sassy established an approximate 20% equity stake (five million shares) in this new company with strong potential for additional upside given the team involved;
    • Throughout this year of exponential growth, Sassy has maintained a sharp focus on its share structure and delivering the best possible value proposition for you, our shareholders. Gander Gold has been established with little to no dilution of Sassy’s structure and Gander Gold itself has been structured with a tight public float, given Sassy’s 49.5% equity stake, Eric Sprott’s approximate 15% stake and the direct spinout to Sassy shareholders of an approximate 12% ownership stake in Gander Gold;
    • During Q2 2021 we revamped our web site through a very talented individual in Nova Scotia who has enjoyed great success on the marketing/branding side of the exploration/mining sector. Over the coming months you’ll see Phase 2 of this program kick in which will further enhance Sassy’s visibility and brand among North American and global resource investors.

The question I’ve probably been asked most often over the past 14 months is why we chose the name Sassy Resources? The simple answer is that the name was meant to stand out from the crowd, be memorable, and to inform the Company’s way of doing things in a “lively, bold and full of spirit” manner, true to the dictionary definition of “sassy”.  In discussion with a new Sassy shareholder in September 2021, this individual relayed to me that while listening to a weekly Sprott podcast during which multiple Newfoundland exploration companies’ names were mentioned, the only one that stuck in their head after the fact was Sassy. As a result, he researched the Company and became a shareholder, which I believe is all the evidence required to confirm that we made the right choice in going with a name that might be a little different from the norm in our industry.

True to its name, Sassy was quick out of the gate in 2020, running a full-season exploration program at the Foremore Gold-Silver Project in Northwest British Columbia, which started well before the Company listed in August 2020. A handful of promising 2019 surface samples from the Westmore Discovery Zone were followed up with a much more extensive 2020 sampling program producing 860 surface samples averaging 2.78 g/t Au. The top 20 surface samples averaged 74.7 g/t Au and 574.7 g/t Ag, many of which contained visible gold. The decision was made to drill test this area with six holes during Phase II drilling in 2020, which produced some promising intersections, including 14.2 g/t Au and 22.6 g/t Ag over 0.90 m. Further, these preliminary holes confirmed that the type of mineralization seen over a wide area on surface was present at depth in the dozens of east-west striking quartz veins that intersect the Westmore granodiorite intrusion and surrounding volcanics over an area we now know is roughly 1,000 m x 1,000 m on surface.

Results are pending from 2021 drilling at Westmore which targeted quartz veins at lower elevations to the south and east from where the first six holes were drilled in 2020. Visual inspection of the drill core confirms the presence of mineralization beyond 400 meters in vertical depth relative to the collar locations of the 2020 holes. The composition and grade of that mineralization won’t be known until the relevant assay certificates are received. We know from the geochronological study completed in early 2021 that the Westmore instrusive and associated mineralization is from the same geological time period as several significant deposits in the Eskay camp region.

Westmore consists of a large area on surface which has produced many high-grade gold and silver samples, and mineralized quartz veins that extend to depth and are open in multiple directions, including at depth. What we’re looking for is one or more of these veins (or the surrounding rock) to generate mineable grade and width, and for further insight into the possible deeper source of the mineralization present in the quartz veins. The type of quartz veins present at Westmore often have wide egg-shaped “blowouts” which produce mineable widths, and the mineralization present in the quartz veins was mobilized from a mineralized source as the fluids that originally formed these veins intersected the Westmore intrusive. Remember, Eskay Creek was discovered with hole 109. We’re still in the early innings at Westmore with plenty of “blue sky” potential as our understanding of this system grows.

What we also know, but perhaps haven’t talked about much, is that Westmore is only a few hundred meters from the planned Galore Creek access road and the planned location of the Galore Creek concentrator and tailings impoundment facility.  Galore Creek is a joint venture 50/50 owned by Newmont and Teck, with reported resources of 12.10 billion pounds copper, 10.67 million ounces of Gold, and 183.37 million ounces of Silver (Galore Creek 43-101 compliant Pre-Feasibility Report, July 2011).  Having the world’s largest gold company and Canada’s largest base metals company planning to build an access road and other associated infrastructure within a few hundred meters of Westmore, along with a large concentrator and tailings facility approximately 1,500 meters from the top of Westmore, can only be a good thing.  This same thinking and potential benefit applies to the rest of the Foremore Property, including the More Creek Corridor and Hanging Valley.

Across the rest of the Foremore Gold-Silver Project, optimism remains high regarding the potential of the property.  The More Creek Corridor presents gold and silver enriched VMS-style mineralization which outcrops at several surface showings over a total strike length of greater than 5 km.  These showings may be part of one large system or may be part of a VMS “camp” or cluster of individual potential deposits. Historical channel sampling and drilling along the More Creek Corridor have produced high-grade samples of gold, silver, copper, zinc and lead. Sassy extended the strike length of the More Creek Corridor with 2020-2021 sampling at the Toe of the receding More Glacier to the south and beyond the Ryder showing to the north. Phase I diamond drilling performed in 2020 centered on the historical BRT showing and produced intersections that included approximately 8 m @ 4 g/t Au-equivalent. To gain further insight into the location, dip and depth of the mineralization along the More Creek Corridor, Westmore and in the Hanging Valley, Sassy completed a property-wide airborne VTEM/Mag Survey in the spring of this year. Preliminary data from this survey suggests that there are several targets for drill testing in 2022 and Sassy personnel spent significant time and effort during the 2021 field season ground truthing, sampling and mapping several of these preliminary targets. Unfortunately, the final data from this Survey was received in late September, 2021, too late to be used for drill targeting during the now-complete 2021 field season.  The final data from the Survey will be evaluated over the winter and paired with the additional surface sampling and geological mapping which was performed during the 2021 field season and will be used to prioritize drill targets for 2022.

 

Of course, the most talked about news of 2021 has been the Company’s move into Newfoundland and Labrador and the establishment of Sassy subsidiary, Gander Gold Corporation. The Company’s foray into Newfoundland started with the search for a road accessible, year-round second project for Sassy. That is exactly what we found in the first acquisition the Company made in Newfoundland through an option agreement struck with Vulcan Minerals.  While negotiating that first deal, we concurrently connected with famed prospector and prospect generator Shawn Ryan and eventually completed three separate option agreements with Shawn/Wildwood Exploration. In total, the four option agreements gave Sassy control over 9,032 claims (the largest claim position in NL at the time), covering some 2,257 square kilometers of strategically located and highly prospective ground on the island.  That’s greater than 15 times the size of the Foremore Property!  The move to Newfoundland was made with the thought in mind that if a project in Newfoundland took on “a life of its own” then it would present a good opportunity for a spinout to help manage capital funding requirements, share structure of both the parent and spinout, operations focus and marketing efforts. The scale of the Newfoundland acquisitions which actually materialized accelerated this consideration, resulting in the incorporation of Gander Gold in February 2021 and the announcement of the planned spinout of Gander from Sassy.

Initially, Sassy purchased 35,330,556 shares in Gander Gold for $0.015 per founders’ share, for a total cost of $529,958.  Sassy Resources Corporation was the sole founding Gander Gold shareholder at this price point.  No insiders or other entities were permitted to participate in this first “founders” financing.  Gander Gold subsequently conducted three rounds of private placement financing, all of which were publicized prior to closing to provide Sassy shareholders every opportunity to “double down” on this emerging opportunity in Newfoundland.  Every single Canadian Sassy shareholder who requested an allotment in the earliest round of financing was included. Private placements were conducted at $0.15 (rolled up from original $0.05 price), $0.20 and $0.25 per Gander convertible special warrant, putting a total of $5,273,708 into the Gander treasury, which facilitated the commencement of early-stage exploration work on the newly acquired properties and allowed Gander Gold to repay to Sassy in cash the money spent on the initial cash payments associated with the four option agreements.

Famed mining and exploration investor Eric Sprott participated in the first two rounds of Gander Gold private placements, investing a total of $2 million in the new company. Mr. Sprott has invested heavily into the rapidly developing Newfoundland Gold Rush, which has brought market attention to the island the and the now dozens of exploration companies working on the island.

The $0.25 round of Gander Gold financing was specifically targeted to new Gander Gold investors (i.e., those who had not previously participated in the $0.15 or $0.20 rounds). This was for the purpose of ensuring Gander Gold would meet the minimum share distribution required for approval of its listing application. Finally, the Company recently announced the spinout distribution of 8,833,333 Gander Gold shares to Sassy shareholders with a planned record date of February 1, 2022. This number of shares represents the settlement by Gander of the value of the initial Sassy share payments made pursuant to the four option agreements in Newfoundland.  While the number of Gander Gold shares which will be distributed to Sassy shareholders is fixed, the final ratio of Gander Gold to Sassy shares in the spinout will be crystalized on the record date, as any warrants or other convertible securities exercised and converted to Sassy shares between now and February 1, 2022 will increase the number of Sassy common shares issued and outstanding.

In the final accounting of the Newfoundland acquisitions, Sassy shareholders have paid $529,958 in cash for a 49.5% equity stake in a highly prospective group of properties in Newfoundland and will directly receive a dividend spinout distribution of 8,833,333 shares in Gander Gold after February 1, 2022.  All of this, with little to no dilution of the Sassy share structure, which stands at only 47,537,506 common shares issued and outstanding as of today.  Gander Gold is expected to have a total share count of approximately 71,395,556 when it comes to trade, while its public float is only approximately 35% of that number, by virtue of the equity positions held by Sassy Resources and Eric Sprott. The Gander Gold convertible special warrants which were sold in the three rounds of private placement financing will be converted to shares on or slightly before Gander Gold commences trading and are included in this expected share count.

Both Sassy and Gander Gold are in strong financial condition.  As of the writing of this letter, Sassy has completed its 2021 field season at Foremore and has approximately $1 million cash on hand, with no debt, no significant outstanding liabilities, and potential warrant exercises over the next few months that could significantly expand the treasury without having to carry out another round of financing. Gander Gold has approximately $3 million cash on hand, with no debt. Gander continues to spend month-to-month on the ongoing large scale exploration program being executed in Newfoundland.

THE JOURNEY AHEAD

The Sassy community can look forward to an eventful news flow on the horizon. Here are a few of the items which will be making news over the coming weeks and months as 2021 turns into 2022:

    • Drill results, surface sampling results, and interpretation of the final data from the Foremore airborne VTEM and mag survey, which will inform 2022 follow up planning and drilling. Staffing, supply chain and work volume concerns may result in slower than desired return of assay results.  Results will be published as they are received and interpreted;
    • Assay results from Phase I soil/till sampling in Newfoundland, along with interpreted results from airborne Mag/VLF surveys, LiDAR, and Orthophotography should start to be made available in the coming weeks. The Company also recently initiated a prospecting campaign in Newfoundland. Three of Sassy’s prospectors from British Columbia have been deployed to Newfoundland to follow up on abundant outcropping noted during initial surveys of each of the Company’s Newfoundland assets. An enormous volume of data is being collected across the Company’s properties in Newfoundland and will keep the news flowing through the winter of 2021-2022.  As of today, greater than 16,000 soil/till samples have been collected, with additional samples being collected daily;
    • The application to list Gander Gold on a Canadian stock exchange will be submitted to the BCSC in the coming days. It’s not possible to say at this point exactly how long the review and approval process will take with the BCSC and/or the exchange, but we should reasonably expect Gander Gold will be trading in the relatively near future;
    • February 1, 2022 is the record date for the spinout distribution of Gander Gold Corporation shares to Sassy shareholders. Sassy shareholders are reminded that only those Sassy warrants which have been converted to Sassy shares prior to the February 1, 2022 record date will attract the spinout Gander Gold shares.  So, while there is no obligation to do so and the original terms of any warrants you may hold remain in place, shareholders are advised to take this into consideration in determining whether to exercise Sassy warrants before versus after February 1, 2022;
    • Max Power Mining Corp. is expected to commence trading in the near future, which will represent the monetization of the Company’s Nicobat claims;
    • Finally, Sassy remains, as always, on the lookout for possible property acquisitions or other means of delivering value to shareholders, whether the opportunity be in British Columbia, Newfoundland, somewhere in between, or in a jurisdiction outside of Canada. Sassy will continue its agile building of shareholder value in the future as it has during its remarkable first year as a public company.
    • We will be rolling out the above with an aggressive marketing strategy anchored by Phase 2 of our online program.

I would like to sincerely thank all of the employees, contractors, partners, advisors, Officers and Directors who have contributed so capably to Sassy’s success and growth over the last fourteen months.  Any company is only as good as its people, and I’ve been fortunate to work with a very skilled “Team Sassy” over the last two years.

If you have any questions or require any further information please feel free to contact me directly anytime or reach out to Terry Bramhall in our investor relations department at terry.bramhall@sassyresources.ca or +1 (604) 833-6999.

Team Sassy is thankful to have you on board as a shareholder and member of the Sassy community.  We look forward to sharing with you the exciting journey ahead.

Wishing you and yours good health and prosperity,

Mark Scott

Sassy President & CEO, Director

mark.scott@sassyresources.ca

Qualified Person

The technical information in this shareholder update has been reviewed and approved by Mr. Ian Fraser, P.Geo., Vice President of Exploration for Sassy Resources. Mr. Fraser is the Qualified Person responsible for the scientific and technical information contained herein under National Instrument 43-101 standards.

 Caution Regarding Forward Looking Statements

Investors are cautioned that, except for statements of historical fact, certain information contained in this document includes “forward looking information”, with respect to a performance expectation for Sassy Resources Corporation. Such forward looking statements are based on current expectations, estimates and projections formulated using assumptions believed to be reasonable and involving a number of risks and uncertainties which could cause actual results to differ materially from those anticipated. Such factors include, without limitation, fluctuations in foreign exchange markets, the price of commodities in both the cash market and futures market, changes in legislation, taxation, controls and regulation of national and local governments and political and economic developments in Canada and other countries where Sassy carries out or may carry out business in the future, the availability of future business opportunities and the ability to successfully integrate acquisitions or operational difficulties related to technical activities of mining and reclamation, the speculative nature of exploration and development of mineral deposits, including risks obtaining necessary licenses and permits, reducing the quantity or grade of reserves, adverse changes in credit ratings, and the challenge of title. The Company does not undertake an obligation to update publicly or revise forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Some of the results reported are historical and may not have been verified by the Company.