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Acquires Mineral Claims Contiguous to the Swanson Gold Project, Québec

LaFleur Minerals Inc. (CSE: LFLR) (OTCQB: LFLRF) (FSE: 3WK0) (“LaFleur Minerals” or the “Company”) is pleased to provide an update on its plans to restart production activities at its 100%-owned Beacon Gold Mill in Val-d’Or, Québec, Canada (Figure 1 and Figure 2). The Beacon Gold Mill is located in a highly prospective mining region for gold exploration on the mineral-rich greenstone Abitibi Belt, an area with over 100 historical and currently operating mines.

BEACON GOLD MILL IS FULLY PERMITTED

The entirely refurbished Beacon Gold Mill was last fully operational in early 2023 when the price of gold was USD$1,800 per ounce and has been under care and maintenance since that time. As gold approaches a record price of USD$3,000 per ounce, the goal of restarting the Beacon Gold Mill in the coming months is an exceptional opportunity for LaFleur Minerals to also target the custom milling of mineralized material from nearby gold deposits that surround the Beacon Mill. LaFleur Minerals demonstrates significant upside potential by ultimately generating revenue at the current elevated gold prices, with the restart of the Beacon Mill targeting a potential annual production scenario of approximately 30,000 to 40,000 ounces of gold based on the current mill capacity. The Company is currently finalizing the restart costs for the Beacon Mill and expects to have all permits and updates completed by the end of Q2 2025.

The entire LaFleur Minerals team has been collectively working toward a successful restart of the Beacon Mill. With the current increase in the price of gold and the fully-permitted Beacon Mill that lies within the prolific Abitibi Gold Belt in the Tier 1 mining district of Val-d’Or, Québec, LaFleur Minerals has a great opportunity to eventually produce gold at Beacon with gold prices at record levels. LaFleur Minerals is now approaching the finish line on many of the fundamental pieces that support this goal including assessing nearby advanced gold deposits and initiating discussions with neighbouring mining companies that could utilize the Beacon Mill to process their bulk samples and future mineralized material through a custom milling agreement for numerous gold deposits in the Val-d’Or region surrounding the Beacon Mill (Figure 3).

Paul Ténière, CEO of LaFleur Minerals, stated, “We continue to make great progress in achieving key operational readiness milestones at the Beacon Mill, including ongoing inspections of all equipment and systems and ensuring an adequate supply of spare parts. The highly experienced team at ABF Mines has been diligently working to finalize a detailed plan and the cost to restart the mill with results expected within the next few weeks. We also continue to meet our environmental monitoring and sampling requirements under our permit to operate, which includes completion of fish and wildlife studies within the tailings storage facility (TSF) as required under both provincial and federal environmental regulations. Our consultants are also working with us to evaluate required upgrades to the TSF as we move towards restarting production at the Beacon Mill.”

Please find video with Lafleur Minerals Beacon Mill Update here: https://lafleurminerals.com/

SWANSON GOLD PROJECT UPDATE

The Swanson gold project is over 15,000 hectares in size and includes several prospects rich in gold and critical metals previously held by Monarch Mining, Abcourt Mines and Globex Mining. The consolidated Swanson Gold Project covers a major structural break that hosts the Swanson, Bartec, and Jolin gold targets and numerous other showings which make up the Swanson gold project. The Swanson gold project is easily accessible by road with a rail line running through the property, allowing direct access to several nearby gold mills and further enhancing its development potential. The Swanson gold project has had in excess of 36,000m of drilling.

• The Swanson Gold Deposit hosts:

  • Indicated Mineral Resource:

    • 2,113,000 t with an average grade of 1.8 g/t gold, containing 123,400 oz of gold.

  • Inferred Mineral Resource Estimate:

    • 872,000 t with an average grade of 2.3 g/t gold, containing 64,500 oz of gold.

(MRE source: NI 43-101 technical report, effective September 17, 2024, filed on the Company’s SEDAR+ profile).

• The Swanson Gold Project is located within 50 km of the Company’s fully-permitted Beacon Gold Mill, and includes:

  • A mining lease which can be permitted for bulk sampling and future mining scenario.

  • Jolin target (Au): Historical Mineral Resource Estimate
    (source: GESTIM -1996, GM62629 – historical estimate not compliant with NI 43-101)

• Bartec target (Au): Historical Mineral Resource Estimate.
  (source: GESTIM – DV 87-01 – historical estimate not compliant NI 43-101)

Recent Exploration Activities:

• High-resolution airborne magnetics and VLF-EM geophysics program:

  • Completed over the entire Swanson Gold Deposit.

• Oriented soil geochemistry and prospecting program:

  • Conducted by IOS Géosciences (IOS), with final assay results pending.

• Induced Polarization (IP) – Resistivity Ground Geophysics Survey:

  • A total of 166 line-km will be surveyed in February 2025 at 200 m line spacings.

  • This will cover the Swanson, Bartec, and Jolin deposits, all of which are advanced gold targets with current and historical mineral resources.

• LaFleur Minerals is currently working with its consultants to expedite permitting of the Swanson Gold Project with a focus on evaluating its potential to supply mineralized material to the Beacon Gold Mill.

• LaFleur Minerals is also completing an IP ground geophysics survey on its Swanson Gold Project and is planning an aggressive drilling program for this spring and summer to increase the existing mineral resource for the project including incorporating the Bartec, Jolin, and other gold targets. Other ongoing work includes evaluating the open-pit mining potential of the mining lease at the Swanson gold deposit and planning to advance to a Pre-Feasibility Study and mine permitting.

ACQUIRES ADDITIONAL CLAIMS ADJOINING THE SWANSON GOLD PROJECT

The Company is also pleased to announce that it has entered into a Property Purchase Agreement with third-party arm’s length vendors (the “Vendors“) dated February 28, 2025 (the “Agreement“). Under the terms of the Agreement, the Company is entitled to acquire 100% interest to 17 mining claims covering approximately 699 hectares (the “Claims“) contiguous with the Company’s Swanson Gold Project (“Swanson“) in the Barraute region, north of Val-d’Or, Québec. These Claims are located east of the Swanson gold deposit and mining lease held by LaFleur Minerals.

The acquisition terms for the Claims consists of a cash payment totaling $15,000 and the issuance of 150,000 common shares of the Company to the Vendors within 7 business days of approval of the Agreement by the Canadian Securities Exchange (“CSE“). The common shares issued under the Agreement are subject to a statutory hold period in Canada expiring four (4) months and one day from the closing date.

For further background information on the Beacon Gold Mill and Swanson Gold Project please refer to the Company’s website and recent videos at the following link: https://lafleurminerals.com/valdor.

LAFLEUR MINERALS ATTENDING PDAC CONFERENCE IN TORONTO – MARCH 2 TO 5

Connect with LaFleur Minerals CEO, Paul Ténière, Technical Advisor/Exploration Manager, Louis Martin, and Senior Advisor, Jean LaFleur, March 2 to 5 at the Toronto Metro Convention Centre for a 1-on-1 meeting to discuss the Company’s recent developments and plans moving forward for its Swanson Gold Project and Beacon Gold Mill. Contact info@lafleurminerals.com to book in advance.

Figure 1: Photo of interior of Beacon Mill currently undergoing detailed inspections for restart

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Figure 2: Photo of exterior of Beacon Mill in Val-d’Or, Québec

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Figure 3: Map of nearby gold deposits within a 50 km radius of the Beacon Gold Mill

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Qualified Person Statement

All scientific and technical information in this news release has been prepared and approved by Louis Martin, P.Geo., Technical Advisor to the Company and considered a Qualified Person for the purposes of NI 43-101.

About LaFleur Minerals Inc.

LaFleur Minerals Inc. (CSE: LFLR) (OTCQB: LFLRF) (FSE: 3WK0) is focused on the development of district-scale gold Deposits in the Abitibi Gold Belt near Val-d’Or, Québec. Our mission is to advance mining Deposits with a laser focus on our resource-stage Swanson Gold Deposit and the Beacon Gold Mill and Property, which have significant potential to deliver long-term value. The Swanson Gold Deposit is over 15,000 hectares (150 km²) in size and includes several prospects rich in gold and critical metals previously held by Monarch Mining, Abcourt Mines, and Globex Mining. LaFleur has recently consolidated a large land package along a major structural break that hosts the Swanson, Bartec, and Jolin gold deposits and several other showings that make up the Swanson Gold Deposit. The Swanson Gold Deposit is easily accessible by road with a rail line running through the property allowing direct access to several nearby gold mills, further enhancing its development potential. Lafleur Minerals’ fully-refurbished and permitted Beacon Gold Mill is capable of processing over 750 tonnes per day and is being considered for processing mineralized material at Swanson and for custom milling operations for other nearby gold Deposits.

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Statement Regarding “Forward-Looking” Information

This news release includes certain statements that may be deemed “forward-looking statements”. Forward-looking statements in this news release include, but are not limited to, statements about the Offering and the Company’s expectations with respect to the foregoing. Factors that could cause future results to differ materially from those anticipated in forward-looking statements in this news release include the tax treatment of the FT Shares. All statements in this new release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, political and regulatory risks associated with mining and exploration, risks related to environmental regulation and liability. the potential for delays in exploration or development activities or the completion of feasibility studies, risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits, risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, results of prefeasibility and feasibility studies, the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/243008

StrategX Elements Corp. (CSE: STGX) (“StrategX” or the “Company”) is pleased to announce the discovery of a wide zone of high-grade graphite mineralization at its Nagvaak property on the Melville Peninsula, Nunavut. A 32-metre drill core interval from historical drill hole NAG96-17 returned an average grade of 15% graphitic carbon (Cg), with a 17-metre section grading 22% Cg. These results reinforce the potential for a significant graphite deposit within the emerging Melville Critical Metals Belt.

Building on this success, StrategX has expanded its mineral claim property position to 79,781 hectares, securing control over a highly prospective critical minerals district. The Company is advancing exploration efforts in the region, positioning itself at the forefront of critical mineral discoveries in Canada.

Key Highlights:

• Significant Graphite Discovery: Assay results from NAG96-17 confirm high-grade graphite, with 19 samples exceeding 20% Cg, including a peak grade of 34.9% Cg. Thin section analysis reveals large (>500 micron) crystalline graphite aggregates, indicating potential for high-quality flake graphite.
• Polymetallic Potential: The same drill hole also returned encouraging concentrations of nickel, copper, zinc, molybdenum, vanadium pentoxide, and silver, further supporting the potential for a multi-metal mineral system (See Table 1).
• Regional Scale Opportunity: The Melville Critical Metals Belt, spanning 200 km by 100 km, contains multiple geophysical anomalies, suggesting an untapped and district-scale mineral system in the same sedimentary belt.
• Exploration Advancement: StrategX has established a base camp and positioned a drill rig at Nagvaak, setting the stage for its 2025 drilling campaign to further define high-grade graphite zones and explore additional targets.

High-Grade Graphite Discovery at Nagvaak

Following encouraging initial results from 20 core samples previously reported here, the Company analyzed the remaining core from NAG96-17, totaling 56 samples. The results confirmed a 32-metre interval averaging 15% Cg from 14.4 m to 47.0 m, with multiple high-grade intercepts including 23% Cg from 58.8 m to 62.8 m, reinforcing the potential for large-scale graphite mineralization.

Given that graphitic schist units have been mapped along a 6 km corridor at Nagvaak-and similar units have been documented throughout the Melville Critical Metals Belt by the Geological Survey of Canada-this discovery signals significant regional potential for additional wide zones of high-grade graphite (Figure 1).

Figure 1: StrategX’s property position & regional potential – Melville Critical Metals Belt

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Regional Potential of the Melville Critical Metals Belt

Exploration on the Melville Peninsula has historically been limited to zinc exploration (1970s & 1990s) and isolated gold exploration. The Company’s work is revealing a much larger, overlooked critical metals system associated with the Penrhyn Basin’s geological evolution. This suggests the region holds potential for large-scale critical metals deposits, positioning StrategX as a pioneer in unlocking its value.

Next Steps

• Drilling high priority targets at Nagvaak to define high-grade graphite mineralization at depth and along strike.
• Comparative studies of world-class graphite deposits to assess economic potential.
• Field evaluation of geophysical and geochemical anomalies across the Melville Critical Metals Belt to identify additional graphite and critical metal targets.
• Follow-up exploration, including ground geophysics, detailed sampling, and mapping, to prioritize drill targets.
• Additional petrographic & metallurgical studies to confirm the high quality and value of the graphite.

Graphite: A Critical Material for the Energy Transition

Graphite is a critical material in the shift toward sustainable energy solutions. It is a key component in lithium-ion batteries, which power electric vehicles (EVs) and store renewable energy from sources like solar and wind. Additionally, its high conductivity, thermal stability, and durability make it essential for fuel cells and other advanced energy technologies. As global demand for clean energy grows, graphite’s role in improving energy storage, efficiency, and sustainability becomes increasingly important. Benchmark Minerals Intelligence estimates that approximately 97 new natural graphite mines need to come online by 2035. Graphite represents the largest component of the batteries, and there is no current replacement for graphite in the anode. In addition to the grade and size of deposits, graphite quality is important. Specifically, flake size, shape and purity are key determinants for value per tonne and ease of processing.

As of February 2025, the graphite market is experiencing significant shifts in supply and demand dynamics, influenced by geopolitical events, production challenges, and the accelerating transition to green energy.

Qualified Person

The geological and technical data contained in this press release were reviewed and approved by the Vice President – Exploration for the Company, Gary Wong, P.Eng., a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Analytical Methods & QA/QC

The analytical work reported herein was performed by ALS Global (“ALS”), Vancouver, Canada. ALS is an ISO-IEC 17025:2017 and ISO 9001:2015 accredited geo analytical laboratory and is independent of the Company and the QP.

All core samples were of historically sawn half-core and no verification of the original sawing and sampling techniques, or core recovery calculations were possible. The samples taken were of pre-existing half-core and submitted to ALS Geochemistry for analysis. Samples were crushed entirely to 70% passing – 2mm, 250g split off and pulverized to better than 85% passing 75 microns. Multi-Element Ultra Trace uses a four-acid digestion performed on a 0.25g sample to quantitatively dissolve most geological materials culminating in analytical analysis performed with a combination of ICP-AES and ICP-MS (method ME-MS61). From there, either PGM-ICP23 or Au-ICP21 was used, depending on whether platinum group metals were suspected. Both methods use a 30g lead fire assay with ICP-AES finish. Graphitic C is determined by digesting a sample in 50% HCl to evolve carbonate as CO2. The residue is filtered, washed, dried, and then roasted at 425C. The roasted residue is analyzed for carbon by oxidation, induction furnace and infrared spectroscopy. No field QA/QC samples (blanks, duplicates, and standards) were inserted because appropriate QA/QC samples are still being sourced.

About StrategX

StrategX is an exploration company focused on discovering critical metals in northern Canada. With projects on the East Arm of the Great Slave Lake (Northwest Territories) and the Melville Peninsula (Nunavut), the Company is pioneering new district-scale discoveries in these underexplored regions. By integrating historical data with modern exploration techniques, StrategX provides investors with a unique opportunity to participate in the discovery of essential metals crucial to electrification, global green energy, and supply chain security.

Neither the Canadian Securities Exchange nor its regulation services accept responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Information

All statements included in this press release that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections, and other forward-looking statements will prove inaccurate, certain of which are beyond the Company’s control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/243029

HIGHLIGHTS

• 60m @ 1.4 grams per tonne (“g/t”) gold equivalent (“AuEq.”) from 53m, including 9m @ 4.2 g/t AuEq. from 98m downhole in OEDD-111.
• 33m @ 1.1 g/t AuEq., including 15m @ 1.4 g/t AuEq. from 272m downhole in OEDD-110.
• 42m @ 0.9 g/t AuEq., including 14m @ 1.7 g/t AuEq. from 336m downhole in hole OEDD-109.
• Drilling continues to demonstrate excellent continuity over broad width and gold tenor.
• A total of 6,380m of drilling was completed across 22 holes and one re-entry hole.

Awalé Resources Limited (TSXV: ARIC) (“Awalé” or the “Company”) is pleased to report results from four diamond drill holes completed as part of the expanded drill campaign targeting the BBM zone at the Odienné Project (“Odienné” or the “Project”) in Côte d’Ivoire. The drill program, which began in November 2024, is complete with a total of 6,379.9m drilled. Drill holes OEDD-106 and OEDD-109 to OEDD-111 were drilled along the eastern margin of the main northwest-plunging mineralized zone, where the Company is increasing drill spacing to a 100m grid (see drill plans and sections in the link below). Notably, drill hole OEDD-111 intersected shallow, broad-width mineralization from just 53m downhole, with good grade. Assay results from 14 drill holes of the BBM diamond drill program are still pending.

“We are pleased to share additional strong drill results from BBM. The four newly reported holes, along with those previously announced this quarter, continue to meet our expectations, returning robust gold and copper mineralization with consistent broad width and grade. These results further confirm the continuity of mineralization at BBM and highlight its near-surface potential.

It’s very pleasing to see the intense exploration efforts we initiated at the start of the 2024-2025 dry season in November now bearing fruit. Results at BBM have met all expectations, and with two rigs operating, we anticipate further promising results ahead. We recently announced significant progress across multiple fronts, including the completion of RC drilling at Fremen, diamond drilling at Empire, a 150-line-km IP geophysics survey along the BBM trend, ongoing drilling at the BBM extensions and Charger, and preparation for drilling at Lando. With multiple active exploration programs underway, I am extremely pleased with the team’s momentum and dedication,” commented Andrew Chubb, CEO of Awalé Resources.

Link to All Figures

Watch CEO Andrew Chubb Discuss the Results

A full table of significant intercepts from the current release, with drill collar locations for all drilling in this phase at BBM are presented in Table 1 and Table 2, respectively.

Table 1: Significant Intercepts – (from this release)

About Awalé Resources

Awalé is a diligent and systematic mineral exploration company focused on discovering large high-grade gold and copper-gold deposits. Exploration activities are currently underway in the underexplored regions of Côte d’Ivoire, where the Company is focused on the Odienné Copper-Gold Project (“Odienné” or the “Project“), covering 2,489 km² across seven permits. This includes 796 km² in two permits held under the Awalé-Newmont Joint Venture (“OJV”). Awalé manages all exploration activities over the OJV, with funding provided by Newmont Joint Ventures Limited (“Newmont“).

Awalé has discovered four gold, gold-copper, and gold-copper-silver-molybdenum mineralized systems within the OJV and has recently commenced exploration on its 100%-owned properties following an $11.5 million capital raise in April 2024.

The Odienné Project is underexplored and has multiple pipeline prospects with similar geochemical signatures to Iron Oxide Copper Gold (IOCG) and intrusive-related mineral systems with substantial upside potential. The Company benefits from a skilled and well-seasoned technical team that allows it to continue exploring in a pro-mining jurisdiction that offers significant potential for district-scale discoveries.

Quality Control and Assurance

Analytical work for geochemistry samples is being carried out at the independent ALS Laboratories in Ghana and Ireland, an ISO 17025 Certified Laboratory. Samples are prepared and stored at the Company’s field camps and put into sealed bags until collected by ALS from the Company’s secure Odienné office and transported by Intertek to their preparation laboratory in Yamoussoukro, Côte d’Ivoire, for preparation. Samples are logged in the tracking system, weighed, dried, and pulverized to greater than 85%, passing a 75-micron screen. Two pulps are prepared from each sample with one stream to Intertek Ghana for fire assay and a second to Ireland where the sample is analyzed by 52 element ICP/MS with a 4-Acid digest. Blanks, duplicates, and certified reference material (standards) are being used to monitor laboratory performance during the analysis.

Table 2: BBM Drilling Collar Cable – (all collars from this program)

Mineralized Interval Calculations

Significant intervals reported in this news release are calculated as downhole length-weighted intercepts. For the BBM target, initial mineralized zones are calculated at a 0.2 g/t trigger and include up to 3 metres of internal waste for delineating mineralized zones. Included intervals are calculated at 0.5 g/t, 1 g/t, and 2 g/t trigger values, with up to 3 metres of internal waste. Table 1 contains a list of all BBM holes reported in this release. True widths are estimated to be 70% of the downhole widths.

Au Equivalent Calculations

Au Equivalent is calculated using the following parameters in USD: Au – 1910/Oz (Troy), Cu 3.80/lb, Mo 40,000/Tonne, and Ag 23.40/Oz (Troy). The Formula AuEq = Au (g/t) + ((Cu (ppm) * 0.00014) + (Mo (ppm) * 0.00065) + (Ag (g/t)*0.01225)). An 80% metallurgical recovery is assumed for all metals, as the specific recovery rates for individual metals are unclear, and assuming different recoveries would be premature at this stage.

Qualified Person

The technical and scientific information contained in this news release has been reviewed and approved for release by Andrew Chubb, the Company’s Qualified Person as defined by National Instrument 43-101. Mr. Chubb is the Company’s Chief Executive Officer and holds an Economic Geology degree, is a Member of the Australian Institute of Geoscientists (AIG), and is a Member of the Society of Economic Geoscientists (SEG). Mr. Chubb has over 25 years of experience in international mineral exploration and mining project evaluation.

Abbreviations Used in this Release

AWALÉ Resources Limited
On behalf of the Board of Directors

“Andrew Chubb”
Chief Executive Officer

The Company’s public documents may be accessed at www.sedarplus.com. For further information on the Company, please visit our website at www.awaleresources.com.

Forward-Looking Information

This press release contains forward-looking information within the meaning of Canadian securities laws (collectively “forward-looking statements”). Forward-Looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, plans, postulate and similar expressions, or are those, which, by their nature, refer to future events. All statements that are not statements of historical fact are forward-looking statements. Forward-Looking statements in this press release include but are not limited to statements regarding, the Company’s presence in Côte d’Ivoire and ability to achieve results, creation of value for Company shareholders, achievements under the Newmont JV, works on other properties, planned drilling, commencement of operations. Although the Company believes any forward-looking statements in this press release are reasonable, it can give no assurance that the expectations and assumptions in such statements will prove to be correct. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and other risks involved in the mineral exploration and development industry, including those risks set out in the Company’s management’s discussion and analysis as filed under the Company’s profile at www.sedarplus.ca. Forward-Looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including that all necessary governmental and regulatory approvals will be received as and when expected. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/243032

Falco Resources Ltd. (TSX.V: FPC) (” Falco ” or the ” Company “) announces today that it has received a letter from the Direction de l’évaluation environnementale des projets industriels et minières at the Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs (the ” Ministry “) regarding the Horne 5 Project (the ” Project “).

This letter includes observations regarding the application of section 197 of the Clean Air Regulations (” CAR “), and identifies certain issues related to the Project further to the analysis of the environmental acceptability of the Project. A comprehensive list of comments, questions and requests for additional technical studies is also attached to the letter.

Air Quality in Rouyn-Noranda

The letter sets forth the Ministry’s position regarding its interpretation of section 197 of the CAR to the effect that the atmospheric dispersion modeling filed by Falco does not conform to section 197 of the CAR. The Ministry considers that according to this modeling, the Project would increase the contaminant concentration in the air of Rouyn-Noranda.

As previously disclosed by Falco, section 197 of the CAR stipulates that a project cannot be authorized if it is likely to add contaminants to the air, the concentration of which is already higher than the standards in force.

Currently, arsenic and other metals are present in the ambient air of Rouyn-Noranda at concentrations presumably higher than the standards in force. As previously disclosed by Falco, increased public and government attention to air quality in Rouyn-Noranda have already delayed and impacted the environmental authorization process for the Project.

The results of the modeling of the projected atmospheric emissions of the Project, carried out by a firm of seasoned experts and in accordance with the Ministry guidelines, demonstrated a maximum contribution more than 2,000 times lower than the standard for arsenic and similar results for other metals. Falco is of the opinion that the result of this modeling for excess metals is zero when this result is rounded to a number with the same precision as the limit value provided for in Appendix K of the CAR. Thus, the maximum contribution for arsenic (standard of 0.003 μg/m3) modeled at 0.00000127 μg/m3 should be expressed as 0.000 μg/m3 and should be considered as resulting in no increase in the concentration in the atmosphere. The contribution of the Project to atmospheric emissions would therefore be compliant with section 197 of the CAR.

The position taken by the Ministry requires that Falco performs an atmospheric dispersion model demonstrating a contribution of nil (0.000∞) for metals already in exceedance in the ambient air in order to conclude that the Project is compliant, which is scientifically impossible. The Ministry will not recognize the fact that the Project results in a negative mass balance.

The Ministry maintains its strict interpretation despite the submissions and arguments presented again recently by Falco. This strict interpretation therefore means that no industrial or other project emitting contaminants already in exceedance in the ambient air could be developed in Rouyn-Noranda in compliance with section 197 of the CAR. This reasoning would also apply to the development of any project in other regions of Québec where contaminants in the ambient air are already in exceedance.

The BAPE report published on January 7, 2025, concludes that the strict interpretation of section 197 of the CAR promoted by the Ministry makes it difficult to envisage the Project’s compliance with this regulation, and recommended that the Ministry initiate a reflection with respect to a more complete and adapted integration of environmental impacts and the consideration of the mass balance of emissions.

All in all, Falco has invested over $150 million in the Project since its inception, including for technical studies and other expenses, the school expansion and multipurpose athletic fields and other diverse initiatives relating to the social acceptability of the Project.

Project highlights include:

• State-of-the-art mining operations
• Use and rehabilitation of already disturbed sites (Quemont and Norbec)
• Economic benefits and job creation (900 construction jobs and 500 operations jobs)
• Recovery of critical and strategic minerals and contribution to the energy transition and decarbonization of the economy

Issues

As previously communicated, Falco welcomed with interest the BAPE report in which the commission of inquiry submits to the attention of the relevant decision-making bodies various elements that require commitments, actions or modifications, which are necessary for the issuance of government authorizations. Falco summarized its main findings in a summary of the highlights available on its website.

In its latest correspondence, the Ministry reminded Falco that in addition to compliance with section 197 of the CAR, the Project involves other major issues that could compromise its environmental acceptability, including the preservation of surface and groundwater quality, the impact of the choice of location of the mine tailings management facilities, the potential impacts of the drawdown of the water table on soil subsidence and the possible impact of the project on the radiation oncology centre located near the mining complex. The correspondence adds that, in this context, the Ministry asks Falco to indicate its intentions regarding the continuation of the environmental impact assessment and review process of the Project.

List of Additional Comments and Questions

The correspondence received by Falco also includes several additional questions and comments from the Ministry, requiring numerous supplemental technical studies despite the fact that some of these questions relate to new elements which had not been previously raised to Falco in the past six years, and that the acceptability of the environmental impact study had been confirmed. The correspondence reveals an approach where the Ministry continues to increase its demands through the process by requiring technical and other documents and studies that have either already been provided, are not reasonably necessary to conclude on the issues analyzed at this stage of the Project or which completion would generate very significant costs and delays for Falco without certainty of results.

Management Reactions and Next Steps

Luc Lessard, President and Chief Executive Officer of Falco, commented: “Falco presented to the Québec governmental authorities a promising mining development project for the city of Rouyn-Noranda, the Abitibi-Témiscamingue region and Québec. Falco completed technical and environmental studies on all the subjects required by the Ministry prior to the BAPE process, including air quality and groundwater management, in collaboration with seasoned experts in the various sectors concerned. The Project was structured in a way to preserve the quality of life of the citizens of Rouyn-Noranda and ensure that the contribution of the Project to the ambient air does not pose a risk to their health. The population of Rouyn-Noranda significantly supports the Project, as demonstrated by the numerous briefs and testimonies submitted to the BAPE.

In the current context of increasing protectionism in the United States, the Government of Québec must respond by reducing administrative obstacles to regional and provincial economic development and job creation. Falco is disappointed by the limited collaboration from the Ministry and the government to develop this collective wealth. Far from being constructive, this approach creates an unpredictable business climate and imposes undue delays.”

Falco is evaluating with its advisors the alternatives available to it and will provide an update when developments warrant it or when required by applicable securities laws. There is no certainty or guarantee that the Ministry will change its position regarding the application of section 197 of the CAR to the Project, that Falco will be able to respond to the Ministry’s numerous additional requests in a timely manner or that Falco will be able to raise the funds necessary to pursue the additional studies requested by the Ministry, which could significantly delay or prevent the granting of the required authorizations and therefore have an adverse impact on the development of the Project and on Falco’s financial position.

The Company will not provide additional comments at this time and will not grant interviews.

About Falco

Falco Resources is one of the largest holders of mining titles in the province of Quebec, with a large portfolio of properties in the Abitibi greenstone belt. Falco holds rights to approximately 67,000 hectares of land in the Noranda Mining Camp, representing 67% of the entire camp and including 13 former gold and base metals mining sites. Falco’s principal asset is the Horne 5 project located beneath the former Horne mine, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Osisko Development Corp. is Falco’s largest shareholder with a 16.0% interest in the Company.

For further information, please contact:

Luc Lessard
President and Chief Executive Officer
514 261-3336
info@falcores.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively, ” forward-looking statements “) within the meaning of applicable securities laws. These statements include references to the impact of the Horne 5 Project on air quality in Rouyn-Noranda, the Ministry’s interpretation of section 197 of the CAR, the issues identified in the course of the BAPE process and noted by the Ministry, Falco’s assessment of the alternatives available to it, the development of the Horne 5 Project and the granting of environmental authorizations. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. The occurrence of such events or the realization of such statements is subject to a number of risk factors, including, without limitation, the risk factors identified in Falco’s annual management’s discussion and analysis and in other continuous disclosure documents available at www.sedarplus.com .

Although Falco believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this press release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except as required by applicable law, Falco disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information.