Recent Insider Transactions • Jun 03
Independent Director recently bought CA$470k worth of stock On the 1st of June, Brett Richards bought around 500k shares on-market at roughly CA$0.94 per share. This transaction amounted to 11% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$749k more in shares than they have sold in the last 12 months. New Risk • May 29
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -CA$17m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$17m free cash flow). Earnings have declined by 52% per year over the past 5 years. Revenue is less than US$1m. Minor Risk Shareholders have been diluted in the past year (22% increase in shares outstanding). Announcement • May 15
Midnight Sun Mining Corp Reports Dumbwa Copper Deposit Drilling Results Midnight Sun Mining Corp. has reported results from drillholes completed on its wholly owned Dumbwa copper deposit, located in Solwezi, Zambia. Drilling has now surpassed 200 holes for a total of over 42,000 metres (“m”) and results to date confirm near surface copper sulphide mineralisation, over a continuous strike length of 5.3 kilometres, with assays received for the first ~4km of drilled strike. The initial discovery and delineation drill program continues with 4 rigs focussed on growing the deposit to the north along strike and to extend previously drilled mineralisation east and west. Quality control issues related to laboratory analysis have been resolved, and the related backlog of assays are now largely caught up. The Company’s drilling has now surpassed 200 holes for a total of more than 42,000m over 5.3km of strike, and continues to confirm that Dumbwa is an exceptionally large, very near surface, structurally controlled copper sulphide deposit which remains open for growth. Drill testing has focussed on the upper ~220m of the deposit with the intent of defining a resource amenable to rapid, low strip ratio, low-cost future development. It is noted that some areas of similar mineralisation at the nearby Lumwana project can be traced to vertical depths well beyond 200m. At Dumbwa, east-west width of the mineralised corridor ranges from 200m to greater than 500m. Copper grades are variable ranging from thick lower grade intercepts (> 50 m @ <0.3%) to thick higher-grade intercepts (>25m@>0.5%). Grade variability is pronounced along strike (north-south) and is influenced by cross-cutting northwest-southeast structures that adversely affect the strain regime and subsequent development of mineralised schists. In contrast, grades are relatively consistent east-west within the higher, medium and lower grade zones, and across the width of the mineralised corridor. Detailed lithological and structural logging is showing the Dumbwa copper deposit to be a stacked series of horizontal to shallow east dipping copper sulphide mineralised biotite and biotite-muscovite schists (“2 mica schists”) within a barren grey and pink basement gneiss sequence. The schists form in an intimate relationship with strain which has resulted in the schists being variably developed over the 5.3 km that have been drilled to date. Simply put, increasing strain leads to greater schist development, which in turn results in higher copper sulphide concentration. The relationship between high tectonic strain and the evolution of the copper-bearing schists is very clear, and the similarity between Lumwana and Dumbwa has been well established. Drilling was conducted using a conventional diamond drilling rig and drill core was captured for the entirety of each hole and placed into plastic core trays. All drill holes were cored in PQ until stable ground was achieved and then reduced to HQ size for the remainder of each hole. Sampling was based on visible copper mineralisation, and sample intervals honoured any important lithological boundaries. Core was then cut in house using a diamond saw and the right half of core was placed into a 200-micron plastic bag, assigned a unique sample number, and recorded into GeoSpark logging system. Samples always remained under the supervision of Midnight Sun staff to maintain chain of custody. All samples were then delivered to SGS Labs located in Kalulushi, Zambia, a fully accredited laboratory. Once received, the samples were sorted, dried, crushed, and pulverized (SGS code PRP90) followed by four-acid digest with ICP-OES finish (SGS Code ICP42S). Copper range of detection is 0.01-10%. Midnight Sun follows an in-house QA/QC program that consists of a random insertion every 10th sample of either a coarse blank, fine blank, coarse duplicate, fine duplicate, or Certified Reference Material (standards). 
