Rise Gold Corp. Announces Strategic Partnership with Morgan Hughes Energy

Key Developments and Potential Share Price Impact

Rise Gold Corp. (CSE: RISE, OTCQB: RYES) has announced a significant strategic development partnership with Morgan Hughes Energy to advance the historic Idaho-Maryland Mine (I-M Mine) in Grass Valley, California, as a U.S.-based critical minerals project. This partnership is highly relevant for investors, as it positions Rise Gold to participate in domestic industrial initiatives, potentially unlocking substantial value and strategic relevance for both gold and tungsten assets.

Key Points from the Report

• Strategic Partnership Agreement: Morgan Hughes will work alongside Rise Gold to advance development planning, support capital formation, and position the project within domestic critical-minerals and industrial initiatives.
• Historic Mine Significance: The I-M Mine produced an estimated 2.4 million ounces of gold at an average grade of 17.1 grams per tonne between 1862 and 1957. It also supplied tungsten to the U.S. military during World War I and the Korean War.
• Tungsten Supply Concerns: Tungsten is critical for defense applications. China produces 84% of global supply and has recently imposed export restrictions. The U.S. has lacked a domestic tungsten mine since 2015, making the I-M Mine a potential strategic asset.
• Morgan Hughes Energy’s Role: Morgan Hughes is a U.S.-based operator focused on advancing strategic mineral assets aligned with evolving U.S. industrial policy and supply-chain priorities. Their involvement aligns economic interests with the long-term advancement of the I-M Mine.
• Regulatory and Legal Update: Despite a comprehensive Environmental Impact Report (26,052 pages) confirming no health or safety risks, the Nevada County Board of Supervisors denied Rise Gold’s Use Permit and vested rights petition. Rise Gold has filed a Writ of Mandamus with the Superior Court of California, with oral arguments scheduled for March 6, 2026. This legal outcome is highly relevant for shareholders as it will determine whether mine operations can proceed.
• Potential Economic Impact: If the mine is reactivated, it is expected to create 475 local jobs, become Nevada County’s largest taxpayer, and supply critical minerals to the U.S. military.

Shareholder-Sensitive Details

• Warrant Structure: Under the 18-month agreement, Rise will issue Morgan Hughes 18 million warrants at a strike price of USD \$0.40, expiring December 31, 2029. Vesting is tied to key project milestones:
  • 9 million warrants vest upon formal advancement within critical-minerals or industrial development frameworks.
  • 4.5 million warrants vest upon establishing development support mechanisms for construction readiness.
  • 4.5 million warrants vest upon securing material development participation or capital commitments.
• Milestone Payment: If material development participation or capital commitments are secured within 36 months, Morgan Hughes will receive a one-time payment of USD \$1.5 million. This could signal significant progress and value creation for shareholders.
• Board Appointment: Morgan Hughes will have a representative appointed to Rise Gold’s board upon achievement of a qualifying milestone, provided they maintain at least a 5% ownership stake.
• Failure to Achieve Milestones: If milestones are not met, Rise Gold will pay Morgan Hughes a one-time reimbursement of USD \$250,000, or issue 1.8 million warrants exercisable for twelve months.
• Legal and Regulatory Risks: The outcome of the pending writ before the Superior Court of California is a critical event for shareholders. If favorable, it could unlock the mine’s development; if unfavorable, it may delay or jeopardize operations.
• Forward-Looking Statements: The report contains forward-looking statements regarding project advancement, potential jobs, tax contributions, and supply of critical minerals. These statements carry inherent risks and uncertainties, including regulatory approvals, financing, environmental compliance, metal prices, and political factors.

Additional Information

• Qualified Person: All scientific and technical information has been reviewed and approved by David Watkinson, P.Eng., President and CEO of Rise Gold, under National Instrument 43-101.
• Company Contact: For further information, investors can contact Rise Gold Corp. at their Grass Valley, California office or visit www.risegoldcorp.com.

Investor Takeaway

The newly announced partnership with Morgan Hughes Energy and the potential reactivation of the Idaho-Maryland Mine—pending regulatory and legal outcomes—represent major developments that could significantly impact Rise Gold’s share price. The strategic alignment with U.S. critical minerals policy, coupled with the possibility of reestablishing domestic tungsten supply, creates substantial upside potential for shareholders. The issuance of warrants and milestone payments further tie the success of the partnership directly to project progress, making this a highly price-sensitive event.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The information is based on public disclosures and forward-looking statements that involve risks and uncertainties. Investors should conduct their own due diligence and consult with professional advisors before making any investment decisions. Rise Gold Corp. undertakes no obligation to update forward-looking statements except as required by law.

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