PJX Resources Inc. — Management Reports 2023

May 24, 2023

==> picture [162 x 80] intentionally omitted <==

May 15, 2023

Dear Shareholders,

The best place to discover new deposits is often around world class mines because they tend to occur at locations on the planet where continental scale structures focus mineralization to form multiple deposits. Our strategy continues to focus exploration on a historical mining district with the necessary major structures and a proven record of hosting world class deposits, such as the historical Sullivan mine.

One of the greatest challenges when exploring a mining district is having sufficient land ownership. Geology favourable to host multiple ore deposits often occurs over large areas. Success is dependent on the number of target areas that can be identified and explored. The more targets the greater the chance of discovering new deposits. PJX has overcome that challenge by having consolidated the mineral rights to the largest land package (over 650 km²) in the Sullivan mining district.

Mining districts also possess a tremendous amount of available historical work and data that can be used to advance exploration and reduce cost. We have assessed and compiled an estimated $35 million in historical data for the Sullivan mining district. PJX has also used historical data to identify and infill data gaps with new prospecting, geological mapping, soil-rock geochem sampling, geophysics, and drilling. This work has identified a pipeline of over 20 prime target areas with potential to discover deposits of gold, silver, copper, lead, zinc, cobalt and/or molybdenum.

PJX continues to systematically explore our pipeline of target areas to discover new deposits. The more we explore multiple target areas the greater our understanding of the geology and deposit potential. This allows us to maximize resources to infill data gaps that will lead to discoveries.

For example, the Vine Property has potential to host a Sullivan type deposit. Down hole geophysics during 2022, combined with surface geophysics and geology, suggest that deposit potential would be to the northwest of the NMS (New Massive Sulphide) Zone identified in 2019. Geological mapping suggests that the favourable geological horizon to host a deposit would be at about 1500 m below surface to the northwest. Additional geophysics is required to help define targets at this depth prior to the next phase of drilling on the Vine Property.

Exploration on the Dewdney Trail Property during 2022 has discovered gold-copper-silver mineralization at surface that supports the potential for porphyry copper-gold type deposits. Exploration also identified anomalous copper and cobalt with massive sulphide mineralization in sediments. Porphyry type deposits can be similar and potentially greater in value than the Sullivan deposit.

These are exciting new discoveries of mineralization during 2022 that we plan to capitalize on in 2023. Our primary exploration focus during 2023 will continue to be the deposit potential of the Dewdney Trail Property because copper-gold-silver mineralization is at surface and our exploration work has identified multiple targets to test. One key to making new world class discoveries is to not put all our efforts into one target area; similar to the adage of not putting all our eggs in one basket.

5600 – 100 King Street West Toronto Ontario M5X 1C9 www.pjxresources.com

It is the first time we are aware of that copper-gold porphyry deposit potential has been identified in the Sullivan mining district. The ability to fully explore the Dewdney Trail Property was only made possible after acquiring the right to own a 100% interest in the historical Estella Mine claims from Imperial Metals in 2021. The 2.24 km² Estella Mine claims occur within the boundary of the 107 km² Dewdney Trail Property. As mentioned, our efforts resulted in discovering potential for new deposit types in two target areas on the Dewdney Trail Property.

1. Estella Basin target area - geological mapping, prospecting, and geochem (rock, soil) sampling discovered new copper-gold-silver mineralization at surface. This work combined with airborne geophysics has identified multiple targets to drill with potential to discover porphyry gold-copper-silver-molybdenum type deposits. The geological environment of the Estella Basin target area in the Sullivan District may be similar to the Butte mining district that hosts world class porphyry copper-silver-molybdenum deposits. The Butte mining district is located in Montana to the south of the Sullivan district.

2. Lewis Ridge target area - geological mapping, geophysics, and preliminary drilling discovered massive sulphide mineralization with anomalous copper and cobalt. This style of mineralization and the geological environment appear to be similar to Sheep Creek/Black Butte deposit in Montana and possibly similar to copper zones at the Mt. Isa deposit in Australia.

Equally important to development is the ability to bring a deposit that has been discovered to production. The Sullivan mining district has existing infrastructure that includes roads, power, rail, and work force.

Our mission is to discover new deposits for the benefit of you, our shareholders, local First Nations and communities. When we began to consolidate our mineral assets, we expected there would be undiscovered deposit potential in the Sullivan Mining District. The good news is that our work has resulted in the identification of deposit potential that continues to be beyond our expectations.

PJX will also continue to unlock the value of our assets by seeking strategic partnerships with the ultimate goal of discovering and developing new deposits.

Metals have a growth future. Strong precious metal prices continued through 2022 in response to global economic uncertainty and challenges arising from war and political instability in regions. Base metal prices have strengthened with growing demand as economies recover post Covid 19. Precious and base metal demand are expected to remain strong in the future to meet the needs of growing populations, advancements in living standards globally, and increased demand for non-carbon energy, including electric vehicles.

Environment, Social, Governance (“ESG”) are crucial factors when considering the allocation of resources. PJX’s strategy has always been to focus on areas with geology to host large deposits in jurisdictions where ESG initiatives support long term prosperity, including community engagement and political stability.

I would like to thank our Board members who have agreed to stand for re-election. They are invaluable members of our team.

On behalf of the Board of Directors, we would like to thank you for your continued support. We wish you, your families, friends, and communities all the best and look forward to a healthy and successful 2023 and beyond.

With best regards,

“ John Keating”

John Keating President, CEO, Director PJX Resources Inc.

5600 – 100 King Street West Toronto Ontario M5X 1C9 www.pjxresources.com