'A Rare Entry Point at One of the Lowest Valuations in the Sector'
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Disclosures for Atrium Research, Lodestar Metals Corp., September 16, 2025

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On September 16, 2025, Atrium Research analysts Ben Pirie and Nicholas Cortellucci published a company spotlight on Lodestar Metals Corp. (LSTR:TSXV; SVTNF:OTC) without providing a rating or target price, characterizing the company as offering Nevada-based exploration exposure at one of the lowest valuations in the sector.

The analysts highlighted the company's strategic repositioning around its flagship Goldrun Project in Nevada and the upcoming drilling campaign planned for the fourth quarter of 2025.

Recent Strategic Transformation and Asset Acquisition

Lodestar Metals Corp. has undergone a strategic transformation, acquiring the Goldrun Property in Nevada through an option agreement signed in May 2025 with William Matlack and Don McDowell. The deal structure includes staged cash payments and milestone-based payouts totaling US$450,000 over six years, plus royalty arrangements including a 2% net smelter return with 0.5% buyback option for US$750,000.

The Goldrun Property comprises 75 unpatented mining claims covering 516 hectares in Humboldt County, Nevada, situated approximately 22 kilometers southeast of Winnemucca. The property benefits from extensive historical exploration data including 131 historical drill holes totaling 17,823 meters and over 1,300 samples from 15 different operators.

Exploration Progress and Target Identification

In August 2025, Lodestar announced the identification of five new undrilled induced polarization targets at the Goldrun Project, supported by historical drill results and high-grade silver and gold assays. At the Gomes Prospect, two chargeability anomalies lie between drill holes with historical highlights including 1.3 grams per tonne gold over 13.7 meters and 26 grams per tonne silver over 19.8 meters.

The company completed a 395-sample soil geochemistry survey and plans to conduct a 25-meter spaced ground magnetic survey in September 2025. Historical drilling has returned notable intercepts including 18.65 grams per tonne gold over 15.2 meters and 4.3 grams per tonne gold over 18.3 meters, demonstrating the exploration potential across multiple target areas.

Recent Asset Expansion

On September 8, 2025, Lodestar entered an exclusivity agreement to negotiate terms for the Eureka West Project in Nevada's Battle Mountain-Eureka Trend. The property consists of 20 unpatented lode claims with historical sampling results including grades up to 378 grams per tonne silver, 2.7% copper, and 7.7% lead. The company secured exclusive negotiation rights until November 15, 2025, for a one-time fee of US$7,500.

Additionally, Lodestar is evaluating 65 unpatented lode claims in the Austin Silver District, described as Nevada's second-largest historic silver-producing region, further expanding its Nevada portfolio.

Financial Position and Market Valuation

As of June 30, 2025, Lodestar maintained CA$531,000 in cash and equivalents with no outstanding debt and quarterly spending of CA$78,000 in the first quarter of 2025. The company has 47.3 million shares outstanding with 3.8 million options and 2.0 million warrants, none currently in-the-money, resulting in a fully diluted share count of 53.1 million.

The company trades at an enterprise value of CA$1.8 million with a market capitalization of CA$2.4 million. Pirie and Cortellucci noted that "priced at CA$3.56/ha (EV/ha), Lodestar trades at a deep discount to its Nevada-based peers, which command EV/ha valuations which are significantly higher (group average of CA$17.95/ha, median of CA$10.15/ha)."

Management Team and Governance

The company is led by CEO Lowell Kamin, who brings extensive capital markets experience from previous roles at Scotiabank and Merrill Lynch. The management team includes veteran geologists Leo Horn and David Christie, both with decades of global exploration and development experience. Don McDowell serves as a strategic advisor, contributing over 30 years of senior leadership experience with major mining companies.

Management and board holdings represent approximately 2% of outstanding shares, with Silver One Resources holding 16% as the largest shareholder and retail investors comprising the remaining 83%.

Jurisdiction Advantages and Risk Assessment

The analysts characterized Nevada as "a tier-one gold jurisdiction recognized as one of the top five globally" that "accounts for ~70% of all gold produced in the U.S." The state contributed approximately 3.9 million ounces of gold in 2024, with an estimated industry market size of US$10 billion.

Risk factors include above-average exploration and financial risk, given the early-stage nature of projects and reliance on external financing. However, jurisdiction risk is assessed as below average due to Nevada's strong legal framework and supportive regulatory environment, consistently ranking as a top-five global mining jurisdiction.

Near-Term Catalysts and Investment Outlook

Key upcoming catalysts include ongoing data reconciliation and soil sampling programs, with the drilling program and other exploration work scheduled for the fourth quarter of 2025. The analysts noted that "exploration is underway at the Goldrun Project with drilling planned for Q4/25, positioning LSTR for a potential re-rating as results emerge."

The combination of an extensive historical database, strategic location within proven gold trends, and significant valuation discount to peers positions Lodestar as what the analysts termed "a rare entry point at one of the lowest valuations in the sector" for investors seeking Nevada-based exploration exposure.