Ulu Gold Project

Projects

Ulu Gold Project

The Company's properties are located ~525 km NNE of Yellowknife, NT in the Kitikmeot region of western Nunavut. Blue Star’s flagship asset, the Ulu Gold Project, is comprised of the Ulu Mining Lease and the contiguous Hood River Property, together encompassing ~12,000 hectares. The Ulu Mining Lease hosts the advanced stage Flood Zone gold deposit, where a significant high-grade gold resource has been outlined. Permanent infrastructure at the site includes a camp, a network of roads, an airstrip, and an underground decline into the Flood Zone gold deposit. Numerous high potential exploration target areas occur throughout the Company’s extensive landholdings, providing Blue Star with excellent resource growth potential.

Ulu Mining Lease

The Ulu property consists of a renewable 21-year mining lease and covers an area of approximately 947 ha. The lease hosts an advanced gold project (Flood Zone) that between 1989 and 2012 saw significant exploration and development by BHP Minerals and Echo Bay Mines, among others.

The past work includes approximately 1.7 km of underground development and approximately 405 diamond drill holes that produced 88,330m of core on the Flood Zone. The Flood Zone contains the bulk of the Ulu gold resource and is open on-strike and at depth. Overall resources of 2.535 million tonnes grading 7.02 g/t Au for 572,000 gold ounces (Measured & Indicated category) and 1.283 million tonnes grading 7.34 g/t Au for 303,000 gold ounces (Inferred category) have been estimated for the Ulu Gold Project (refer to “Technical Report on the Ulu Gold Project, Nunavut, Canada” dated February 2023). The deepest intersection of potentially mineable width at the Flood Zone is 14.9 g/t Au over 7.7 m in BHP’s drill hole 90VD-75 at 610 m below surface. Metallurgical testing on the Flood Zone gold mineralization has shown that gold is recoverable in amounts greater than 90% by gravity, flotation and cyanidation.

_{Figure: Map of the Ulu and Hood River Projects displaying numerous targets and gold showings}

The Ulu Mining Lease, 947 ha, was initially staked by BHP Minerals as a mineral claim in 1988 under the Canada Mining Regulations and subsequently converted under the same regulations to a renewable 21-year Crown mining lease in 1996. The mining lease, now registered to Blue Star Gold Corp. was renewed as of November 18, 2017 with an expiry date of November 18, 2038.

950 ha contiguous with Hood River Property

Permitted mining lease with both identified gold resources and numerous high-quality drill targets

Permanent infrastructure includes airstrip and camp

Ulu Gold Project mineral resource estimate:

M&I 572,000 oz. Au (2.53MT @ 7.02 g/t Au)
Inf. 303,000 oz. Au (1.28MT @ 7.34 g/t Au)

Excellent resource expansion potential

_{Figure: A significant high-grade gold resource exists at the Flood Zone deposit, and numerous high-grade gold occurrences and priority targets occur throughout the Ulu and Hood River Projects}

The main deposit, called the Flood Zone, is a northwest-trending, shear hosted anastomosing vein/alteration system that occurs proximal to a basalt-metagreywacke contact at the core of the Ulu Fold. The deposit is steeply dipping to the southwest and has been traced for over 400 metres on surface. The current Flood Zone resource occurs between the surface and a vertical depth of 525 metres. The deepest significant Flood Zone drill intersection assayed 14.9 g/t gold over 7.7 metres at a depth of 610 metres below surface.

In addition to the high-grade Flood Zone gold deposit, the Ulu mining lease hosts several additional prospective target zones, many of which are spatially related to the axis of the ~5 km long Ulu Fold, which extends from the Ulu lease onto the northern part of the Hood River property and culminates at the North Fold Nose Zone.

The 2022 Exploration Program Highlights

3,700 Metre Drill Program (25 drill holes)
- Testing several targets on the Ulu property, improving the Flood Zone resource model
3,055-line-km Airborne Magnetometry Survey and Ground VLF-EM survey
Surface Mapping and Rock Sampling Program
- 1:2500 scale mapping of the Zebra showing, and work on historical showings on the Hood River Project
- Preliminary review of 58 targets within the more than 100 compiled pipeline showings conducted

The exploration program consisted of 25 drill holes totalling 3,700 metres in the Gnu (Nutaaq) zone, Central-C, Axis, sediment core and select targets in the Flood Zone. The objective was to test target areas, in particular the expanding Gnu (Nutaaq) zone, and the Central-C and Axis zones, located within a few hundred metres of the Flood Zone gold deposit. All drilling was completed with oriented core to assist in geological modelling.

An additional sampling program of historical core from nine drill holes was undertaken to better determine mineralization boundaries due to unsampled shoulders on some mineralized zones. In addition, a 3,055-line-kilometre airborne geophysics program and a regional till sampling program on the Roma project were conducted. Detailed review and prospecting/mapping of 58 of the targets within the more than 100 compiled pipeline showings were also completed.

Majority of resource development/evaluation work completed in much lower gold price environment

It would cost +$60 million CAD to replicate the extensive technical database & infrastructure at the Ulu site

Blue Star Drilling

• 2019 – 1,540 metres (11 surface holes HRP)

• 2020 – 7,624 metres (38 surface holes, Ulu & HRP’s)

• 2021 – 5,030 metres (26 drill holes at the Flood Zone, the NFN target, the Central Zone, and the Gnu area)

• 2022 – 3,700 metres (25 drill holes at the Gnu (Nutaaq) zone, Central-C, Axis, sediment core and select targets in the Flood Zone)

Existing Ulu Project Development

1.7kms of U/G development (ramp , raises)
Airstrip, road network, camp, shop

Blue Star Gold Surface Drilling Since 2019

Highlights

Measured and Indicated Resource of 2.535 million tonnes at an average grade of 7.02 grams per tonne ("g/t") gold ("Au") for 572,000 ounces of gold;

Inferred Mineral Resource of 1.283 million tonnes at an average grade of 7.34 g/t Au for 303,000 ounces of gold;

The updated geological model - using explicit vs the implicit techniques utilized in the previous estimation - has helped define all the reported zones;

Gold mineralisation remains open for further expansion in all contributing zones;

Previously reported metallurgical studies indicate all zones in the MRE can conceptually be co-mingled with +90% gold recovery; and

The multitude of gold showings and zones that have seen only limited detailed assessment provides the Company with excellent resource expansion potential throughout its district scale projects.

Ulu Gold Project Mineral Resource Estimate (“MRE”)*:

The independent and qualified person for the Mineral Resource Estimate, as defined by NI 43-101, is Chris MacInnis, P.Geo (#2059) from ALS-GoldSpot Ltd.

Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. There has been insufficient exploration to define inferred resources above as indicated or measured mineral resources however, it is reasonably expected that the majority of the inferred mineral resources could be upgraded to indicated mineral resources with continued exploration. There is no guarantee that all or any part of a mineral resource can or will be converted into a mineral reserve. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

The mineral resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council (CIM 2014 and 2019).

The MRE is underpinned by data from 544 on site diamond drill holes totalling 112,880m of drilling

The MRE is reported at a cut off of 1.5 g/t Au for the conceptual open pit and 3.5 g/t Au for the conceptual underground extraction scenarios. The cut-off grades and potential mining scenarios were calculated using the following parameters; mining cost: $110.00/t UG and $4.13/t OP; G&A and site service costs: $44.20/t; processing cost: $36.3/t; recoveries 92%; gold price US$1750.00 per ounce; and minimum mining width of 2.0 metres in order to meet the requirement that the mineral resources show “reasonable prospects for eventual economic extraction.”

Original Au assays were composited to 1m with 4,231 composites generated in the mineralised domains including 3,934 composites generated for the Flood Zone, 81 composites for the NFN Zone and 154 composites for the Gnu (Nutaaq) Zone.

Grade interpolation was performed by ordinary kriging (OK) for the Flood Zone and inverse power of distance to the third power for all other zones. The informing data was composited to 1.0m for all zones except GNU, which used a 0.75m composite size.

High grade capping supported by statistical analysis was completed on composite data from each zone and was established at 41 g/t Au for the Flood Zone, 35 g/t for the Gnu(Nutaaq) Zone and 41 g/t Au for the NFN Zone.

All figures are rounded to reflect the relative accuracy of the estimates. Metal content is presented in troy ounces (tonnes x grade (g/t) / 31.10348).

The Author is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues or any other relevant issue not reported in the technical report that could materially affect the MRE.

The effective date of the MRE is 08 February 2023.

The Ulu Gold Project MRE is based on 544 diamond drill holes totalling 112,880 m spanning over thirty years to the present along and adjacent to the Ulu Fold Hinge. The MRE represents a significant adjustment in geological and mineralisation style understanding and confidence in the mineralisation modeling to a historic MRE published by a previous operator in 2015 by:

Modeling distinct high-grade zones with lower grade zones where they occur, and modeling two distinctive styles of mineralisation separately;
Addition of new assays from drilling campaigns in 2019 through 2022 totaling 88 drill holes for 15,391 m; and
Modeling portions of the mineral resources with a conceptual open pit mining scenario versus a solely underground extraction scenario.

* As reported in the amended technical report, titled “Technical Report on the Ulu Gold Property, Nunavut, Canada“, dated February 22, 2023 and filed on SEDAR.

In February 22, 2023, the Company reported that the independent and qualified person for the Mineral Resource Estimate, as defined by NI 43-101, is Chris MacInnis, P.Geo (#2059) from ALS-GoldSpot Ltd. had completed an independent Technical Report entitled, Technical Report on the Ulu Project, Kitikmeot Region, Nunavut, Canada.

Ulu Gold Project 43-101 Technical Report

Blue Star is the first company to create GIS databases for all the historic work on the Ulu and Hood River properties

including:

Scanning and digitizing > 25 historic geology maps
Digitizing 3,000+ surface mineralization points, 2,700 rock samples, and 2,300 outcrops as well as structural data
Creating 200+ lithology polygon digital geology maps
Integrating all surface data into 3D environment
Rigorous QAQC on historic drill data (477 ddhs) to create master databases for assays, survey data, alteration and drill composites
Creating 3D solids for alteration, lithologies, mineralization

Digital compilation into 3D has allowed for identification of likely controls on gold transport and localization at Ulu. These include:

Fluid focus along fold axis (1st order control) at lithologic contacts with high rheology contrast (basalt-sediment)
Capture of the fluid by planar quartz-feldspar porphyry dikes (2nd order)
Deposition of mineralization in NW trending fractures (3rd order capture) within competent mafic volcanic unit. High-iron tholeiitic basalt = same host for Doris Au Mine and HGZ at Red Lake (which also has acicular arsenopyrite)

Recognition of these structural controls allows for targeting of similar settings along the Ulu Fold and Hood River Property.

Amphibolite Grade Gold Mine

Examples

Eleonore
Quebec: Aspy > po > py. Tourmaline rich. 7+ M oz Au. Hedenbergite alteration. Ductile deformation.

Borden Lake
Ontario. 4.17 MT @ 6.38 g/t AuPo » Py. Ductile deformation.

Lupin
Nunavut. 3.4 M oz Au produced at 9.0 g/t. Aspy + loellingite + po with quartz + hedenbergite.

Hemlo
Ontario. 21 M Oz Au total. Golden Giant grade = 11.47 g Au.

Flood Zone

Grain boundaries + free gold. Calc-silicate alteration including actinolite and diopsidic hedenbergite.
Features consistent with amphibolite grade Au deposits include ductile deformation, arsenopyrite + lollingite + pyrrhotite ore mineral assemblage, calc-silicate alteration.

Great Bear Resources’ LP Fault Zone
Mineralization is in amphibolite grades, 15.45 g/t Au over 25.15 m (389 gram metres)

2020 Drill Program

Ulu Video Footage

Overview

_{Figure: Map of the Ulu and Hood River Projects displaying numerous targets and gold showings}

950 ha contiguous with Hood River Property

Permitted mining lease with both identified gold resources and numerous high-quality drill targets

Permanent infrastructure includes airstrip and camp

Ulu Gold Project mineral resource estimate:

M&I 572,000 oz. Au (2.53MT @ 7.02 g/t Au)
Inf. 303,000 oz. Au (1.28MT @ 7.34 g/t Au)

Excellent resource expansion potential

Geological Summary

_{Figure: A significant high-grade gold resource exists at the Flood Zone deposit, and numerous high-grade gold occurrences and priority targets occur throughout the Ulu and Hood River Projects}

Exploration Program

The 2022 Exploration Program Highlights

3,700 Metre Drill Program (25 drill holes)
- Testing several targets on the Ulu property, improving the Flood Zone resource model
3,055-line-km Airborne Magnetometry Survey and Ground VLF-EM survey
Surface Mapping and Rock Sampling Program
- 1:2500 scale mapping of the Zebra showing, and work on historical showings on the Hood River Project
- Preliminary review of 58 targets within the more than 100 compiled pipeline showings conducted

Drilling Development History

Majority of resource development/evaluation work completed in much lower gold price environment

It would cost +$60 million CAD to replicate the extensive technical database & infrastructure at the Ulu site

Blue Star Drilling

Existing Ulu Project Development

1.7kms of U/G development (ramp , raises)
Airstrip, road network, camp, shop

Gold Resources

Highlights

Measured and Indicated Resource of 2.535 million tonnes at an average grade of 7.02 grams per tonne ("g/t") gold ("Au") for 572,000 ounces of gold;

Inferred Mineral Resource of 1.283 million tonnes at an average grade of 7.34 g/t Au for 303,000 ounces of gold;

The updated geological model - using explicit vs the implicit techniques utilized in the previous estimation - has helped define all the reported zones;

Gold mineralisation remains open for further expansion in all contributing zones;

Previously reported metallurgical studies indicate all zones in the MRE can conceptually be co-mingled with +90% gold recovery; and

The multitude of gold showings and zones that have seen only limited detailed assessment provides the Company with excellent resource expansion potential throughout its district scale projects.

Ulu Gold Project Mineral Resource Estimate (“MRE”)*:

The independent and qualified person for the Mineral Resource Estimate, as defined by NI 43-101, is Chris MacInnis, P.Geo (#2059) from ALS-GoldSpot Ltd.

The MRE is underpinned by data from 544 on site diamond drill holes totalling 112,880m of drilling

All figures are rounded to reflect the relative accuracy of the estimates. Metal content is presented in troy ounces (tonnes x grade (g/t) / 31.10348).

The effective date of the MRE is 08 February 2023.

Modeling distinct high-grade zones with lower grade zones where they occur, and modeling two distinctive styles of mineralisation separately;
Addition of new assays from drilling campaigns in 2019 through 2022 totaling 88 drill holes for 15,391 m; and
Modeling portions of the mineral resources with a conceptual open pit mining scenario versus a solely underground extraction scenario.

* As reported in the amended technical report, titled “Technical Report on the Ulu Gold Property, Nunavut, Canada“, dated February 22, 2023 and filed on SEDAR.

Technical Report

Ulu Gold Project 43-101 Technical Report

Flood & Gnu Resource 3D Model

Digital Capture of Historical Data

Blue Star is the first company to create GIS databases for all the historic work on the Ulu and Hood River properties

including:

Scanning and digitizing > 25 historic geology maps
Digitizing 3,000+ surface mineralization points, 2,700 rock samples, and 2,300 outcrops as well as structural data
Creating 200+ lithology polygon digital geology maps
Integrating all surface data into 3D environment
Rigorous QAQC on historic drill data (477 ddhs) to create master databases for assays, survey data, alteration and drill composites
Creating 3D solids for alteration, lithologies, mineralization

Key Controls on Mineralization Identified

Digital compilation into 3D has allowed for identification of likely controls on gold transport and localization at Ulu. These include:

Fluid focus along fold axis (1st order control) at lithologic contacts with high rheology contrast (basalt-sediment)
Capture of the fluid by planar quartz-feldspar porphyry dikes (2nd order)
Deposition of mineralization in NW trending fractures (3rd order capture) within competent mafic volcanic unit. High-iron tholeiitic basalt = same host for Doris Au Mine and HGZ at Red Lake (which also has acicular arsenopyrite)

Recognition of these structural controls allows for targeting of similar settings along the Ulu Fold and Hood River Property.

Alteration AU Grade Deposit Examples

Amphibolite Grade Gold Mine

Examples

Eleonore
Quebec: Aspy > po > py. Tourmaline rich. 7+ M oz Au. Hedenbergite alteration. Ductile deformation.

Borden Lake
Ontario. 4.17 MT @ 6.38 g/t AuPo » Py. Ductile deformation.

Lupin
Nunavut. 3.4 M oz Au produced at 9.0 g/t. Aspy + loellingite + po with quartz + hedenbergite.

Hemlo
Ontario. 21 M Oz Au total. Golden Giant grade = 11.47 g Au.

Flood Zone

Grain boundaries + free gold. Calc-silicate alteration including actinolite and diopsidic hedenbergite.
Features consistent with amphibolite grade Au deposits include ductile deformation, arsenopyrite + lollingite + pyrrhotite ore mineral assemblage, calc-silicate alteration.

Great Bear Resources’ LP Fault Zone
Mineralization is in amphibolite grades, 15.45 g/t Au over 25.15 m (389 gram metres)

Flood Core Zones

Media Gallery

2020 Drill Program

Ulu Video Footage

Hood River Property

The Hood River property is contiguous to the Ulu lease to the north, east and south. The property is held through a renewable, 20-year Mineral Exploration Agreement with Nunavut Tunngavik Incorporated. The highly prospective property encompasses 11,200 ha.

A large number of high-grade gold showings occur throughout the property which provide for excellent resource expansion potential at multiple targets. The main exploration target for the property is shear-hosted gold mineralization similar to the Flood Zone on the adjacent Ulu lease. There is also strong potential to discover massive sulphide vein systems as evidenced by a new discovery in 2021 ~750 metres north east of the Flood Zone deposit.

The series of gold showings and prospects that occur on trend and north of the Flood Zone are considered to be related to the ~5 km long Ulu Fold which hosts the Flood Zone and extends to the NFN Zone on the Hood River Property. At least five gold prospects have been identified to date on this key structural feature.

11,200 ha exploration concession

Underexplored, high potential for new discovery

Numerous gold drill targets identified for future resource growth

Promise of property stems from the fact it shares the same deformation history (including tight folding) and the same volcano-sedimentary stratigraphic sequence as the Flood Zone (Ulu anticline)

One of the priority target areas is the Crown-Pro Trend, a ~4 km long prospective trace of a north trending fold axis, which links the Crown showing to the Pro Zone. Very limited drilling has occurred is this area, where gold grades up to 15 grams have been sampled

Ulu Gold Project 43-101 Technical Report

The 2022 exploration program at the Hood River Project focused on advancing many of the gold showings in the target pipeline.

Additional regional targeting/testing conducted at the North Penthouse, JC and Gravy target area returned impressive results:

Check sample of one channel returned 92.40 g/t gold in 2022 at North Penthouse
JC showing returned samples grading 15.20 g/t gold and 11.05 g/t gold
Gravy trend (~5,500 metres ESE of Flood Zone deposit): +950-metre-long arsenopyrite rich structural trend returned values that include 8.81 g/t gold and 3.84 g/t gold among numerous multi-gram samples

Generated new targets for future field program

+20 mineralized showings currently identified on the Hood River Property have been grouped into 5 main zones. A summary of some of the historic exploration results, by zone, is as follows:

North Fold Nose (“NFN”)

The NFN forms the northern extension of the Ulu Anticline, the hosting structure of the best-known part of the Ulu gold deposit, the Flood Zone
A significant section of this structure on the Hood River Property remains untested

Crown Zone (“CZ”)

The CZ is a composite of five individual areas
The larger, “Main Area” was trenched by BHP Billiton whose best-reported trench sample was 24.3 g/t gold over 0.7 metres
Sampling of this site returned 13.47 g/t gold over 2 metres
The Main Area is exposed for 800 metres with widths of up to 6 metres. It remains open to the north

Penthouse South Zone (“PSZ”)

Structurally equivalent to the geological setting of the Ulu gold deposit
At the Penthouse South Zone, a 2-metre-wide shear zone can be traced for over 200 metres. Grab samples from this shear zone grade up to 200 g/t gold
Several quartz veins up to 1 metre wide have been identified at PSZ. Grab samples on these veins have returned assays up to 62 g/t gold
Volcanogenic massive sulphide mineralization has also been identified in areas

Penthouse North Zone (“PNZ”)

At the PNZ, a 0.1 m – 0.5 m wide shear zone can be traced for over 250 metres. Sampling from this area returned up to 130 g/t gold
The Penthouse North and South Zones are located approximately 3 km apart and are separated by a topographically subdued valley with no outcrop

Blackridge Zone (“BRZ”):

A 750-metre-long mineralized vein/shear is exposed at this site
Only limited shallow drilling tested ~300 m of this structure on strike
The best core drill intersection returned 10 g/t gold over 1.07 metres
A 1.0 metre chip sample across this structure returned an assay of 21.58 g/t gold
It is believed there is significant potential to extend the structure to the north
Surface grab samples have returned assays up to 16.8 g/t gold

Overview

11,200 ha exploration concession

Underexplored, high potential for new discovery

Numerous gold drill targets identified for future resource growth

Promise of property stems from the fact it shares the same deformation history (including tight folding) and the same volcano-sedimentary stratigraphic sequence as the Flood Zone (Ulu anticline)

Technical Reports

Ulu Gold Project 43-101 Technical Report

Exploration Program

The 2022 exploration program at the Hood River Project focused on advancing many of the gold showings in the target pipeline.

Additional regional targeting/testing conducted at the North Penthouse, JC and Gravy target area returned impressive results:

Check sample of one channel returned 92.40 g/t gold in 2022 at North Penthouse
JC showing returned samples grading 15.20 g/t gold and 11.05 g/t gold
Gravy trend (~5,500 metres ESE of Flood Zone deposit): +950-metre-long arsenopyrite rich structural trend returned values that include 8.81 g/t gold and 3.84 g/t gold among numerous multi-gram samples

Generated new targets for future field program

Geological Summary

Exploration Focus

+20 mineralized showings currently identified on the Hood River Property have been grouped into 5 main zones. A summary of some of the historic exploration results, by zone, is as follows:

North Fold Nose (“NFN”)

Crown Zone (“CZ”)

Penthouse South Zone (“PSZ”)

Penthouse North Zone (“PNZ”)

Blackridge Zone (“BRZ”):

Video Footage

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