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BAU: One of the Only Juniors Left in Nunavut

What you need to know:
• BAU’s flagship Ulu Gold Project in Nunavut has one of the highest-grade resources in the country at over 7.0 g/t Au
• Both of the Company’s projects combine to control 45km of the High Lake Volcanic Greenstone Belt. This region is one of the few underexplored frontiers in Canada
• Management and board own >50% of the Company, highlighting their belief in the project and vested interest in unlocking the most value for shareholders
• Agnico Eagle’s success at Hope Bay and B2Gold’s recent acquisition of Sabina Gold and Silver highlight this region as highly prospective

Blue Star Gold Corp. (BAU:TSXV) is a Canadian junior exploration company with two prospective projects spanning 45km along the High Lake Volcanic Belt in Nunavut. The Company’s two assets are the Ulu Gold Project and the Roma Project with Agnico Eagle having permits covering the land along the trend, dividing the two projects (Figure 3). The Ulu Gold Project hosts an NI43-101 compliant resource of 572 Koz grading 7.02 g/t Au in the measured and indicated category and 303 Koz Au grading 7.34 g/t Au in the inferred category. The projects sit within a greenstone belt with similar mineralization to the Hope Bay Belt (Agnico Eagle’s 6.0 Moz Hope Bay resource & reserve) and the Back River Belt (Sabina’s Back River 12.8 Moz resource & reserve), as seen in Figure 2. BAU has drilled under 15% of the metres that AEM and SBB have, and we believe that with additional drilling, BAU will continue to uncover a world-class asset similar to the two majors in the region.

Investment Thesis
Existing High-Grade Resource. BAU’s Ulu Gold Project hosts a high-grade 875 Koz resource at an average grade of 7.13 g/t Au. Additionally, over 65% of the resource is in the measured and indicated category, highlighting drilling confidence/density.

Significant Resource Growth Potential. Gold mineralization remains open for further expansion in all zones that contributed to the resource. There also exists multiple targets along the highly prospective Ulu Fold which extends ~6km from the Flood Zone to the North Fold Nose Zone.

Tightly Held Stock. BAU’s capital structure is strong with management and board holding >50%, funds and high-net-worth owning ~25%, and retail making up the remainder. There are only 64M shares outstanding and no warrants/options ITM.

Past Success in Nunavut. Blue Star is led by a highly technical team of geologists with a history of success in Nunavut. This includes Darren Lindsay (VP of Exploration) who previously worked on the resource expansion at Hope Bay (which was acquired by Newmont for $1.5B in 2007) and Eugene Flood (Technical Advisor) who discovered the Flood Deposit and completed the first mapping and drilling programs at North Hope Bay.

Trading In Line with Peers, but Deserves Premium Valuation. BAU currently trades at $30/oz in-the-ground vs. peers at $38/oz, after rallying 80% in the last month. However, we believe based on the results to date, the resource being much higher grade than most, and the significant exploration potential, BAU should be trading at a sizeable premium to the group.