Exploits Discovery's Strategic Flow-Through Financing and Québec Gold Exploration Momentum

Junior mining companies operating in high-potential jurisdictions often face the dual challenge of securing capital while maximizing returns on exploration. Exploits Discovery Corp. (CSE: Nfld) has emerged as a compelling case study in leveraging Québec's flow-through financing incentives to advance gold projects in the Abitibi Greenstone Belt, one of the world's most prolific gold districts. By dissecting the company's recent capital-raising efforts and its strategic alignment with jurisdictional advantages, this analysis evaluates how flow-through financing enhances capital efficiency and positions Exploits to unlock district-scale gold potential.

Strategic Flow-Through Financing: A Capital-Efficient Model

Exploits Discovery recently completed the charity portion of its 2025 flow-through financing, raising $1.45 million through the issuance of 16,666,666 flow-through common shares at $0.087 per share in a non-brokered private placement led by SIDEX L.P. and NQ Investissement minier according to the company's announcement. This structure allows the company to transfer Canadian Exploration Expenses (CEEs) to investors, who receive tax deductions in exchange for funding exploration activities. Crucially, the gross proceeds will be allocated to eligible exploration expenses in Québec, with renunciations scheduled by December 31, 2025, ensuring compliance with tax incentive frameworks as reported by the company.

The company also plans to close the final tranche of its flow-through financing by December 30, 2025, further solidifying its capital base for winter drilling programs. This approach minimizes dilution while aligning investor interests with project success, as the tax benefits of flow-through shares are contingent on the generation of qualifying exploration expenditures. For junior explorers like Exploits, this model reduces the cost of capital and accelerates project timelines, as noted by industry analysts.

Jurisdictional Advantages: Québec's Tax Incentives and Abitibi's Gold Legacy

Québec's mining tax regime is a cornerstone of Exploits' strategy. The province offers 100% deductibility of exploration costs in the year incurred (CEE claims) and a 15% non-refundable Mineral Exploration Tax Credit (METC), extendable until March 31, 2027 according to Canada's natural resources department. These incentives, combined with the flow-through share mechanism, create a layered financial support system that reduces the effective cost of exploration by up to 25% for qualifying projects.

The Abitibi Greenstone Belt, where Exploits' projects are located, amplifies these advantages. As a geological district with over 200 million ounces of historical gold production, the Abitibi offers a proven track record of discovery and infrastructure accessibility, reducing exploration risk. Exploits' recent option agreement with Cartier Resources to acquire up to 100% of the Wilson, Fenton, and Benoist projects underscores this focus. For instance: - The Benoist project hosts 134,400 ounces of indicated gold and 107,000 ounces of inferred gold, with historical resource estimates pointing to high-grade potential according to Exploits' announcement. - The Fenton project features 63,885 ounces of historical gold and high-grade surface mineralization, suggesting near-surface deposits that could accelerate resource delineation according to Exploits' announcement.

By targeting these advanced-stage projects, Exploits minimizes the need for early-stage exploration capital, allowing it to channel flow-through funds directly into drilling and resource expansion.

Capital Allocation and District-Scale Potential

Exploits' capital allocation strategy reflects a disciplined focus on value creation through systematic exploration. The company's treasury, bolstered by a $10 million cash balance (as of 2025) according to investor analysis, provides a buffer to sustain operations while leveraging low-cost flow-through financing. This dual approach ensures that exploration expenditures are prioritized on high-impact targets, such as the Benoist and Fenton projects, where historical data suggests significant upside.

Moreover, the Abitibi Belt's district-scale potential-with multiple underexplored targets and a history of world-class discoveries-positions Exploits to benefit from multi-phase resource growth. For example, Amex Exploration's success in the region, partly attributed to similar tax incentives, demonstrates how junior miners can transition from exploration to production within a supportive regulatory and fiscal environment. Exploits' winter drilling program, funded by its flow-through financing, aims to replicate this trajectory by expanding historical resources and identifying new high-grade zones.

Conclusion: A Model for Junior Miners in High-Potential Jurisdictions

Exploits Discovery's strategic use of flow-through financing and its focus on Québec's Abitibi Greenstone Belt illustrate a blueprint for capital efficiency in junior gold exploration. By aligning with jurisdictional incentives-such as CEEs, METC, and flow-through shares-the company reduces exploration costs, accelerates project timelines, and mitigates financial risk. Meanwhile, the Abitibi Belt's geological promise and infrastructure accessibility enhance the likelihood of successful resource expansion.

For investors, Exploits represents a compelling opportunity to participate in a capital-efficient exploration model with clear pathways to value creation. As the company advances its projects through systematic drilling and resource growth, the interplay of strategic financing and jurisdictional advantages could unlock significant shareholder value in the coming years.