Mr. Tonno Vahk reports

ATON DRILLS HIGH GRADE GOLD MINERALISATION AT SEMNA, INCLUDING 14.63 G/T AU OVER AN INTERVAL OF 12 METRES

Aton Resources Inc. has released the first results from the recent reverse circulation percussion (RC) drilling at the Semna prospect, located within its 100-per-cent-owned Abu Marawat concession in the Eastern Desert of Egypt.

Highlights:

• Twenty-one holes were drilled at the Semna prospect, for a total of 3,662 metres, during the recently completed RC drilling program.
• Preliminary results of four-metre composite sampling are now available for the first 17 holes, SMP-001 to SMP-016, with nine of the holes of targeting the Main vein zone.
• Eight out of the nine holes targeting the Main vein zone intersected moderate to high-grade gold mineralization.
• Significant mineralized intersections from the Semna Main vein zone included 14.63 grams per tonne gold over a 12-metre interval (hole SMP-016); 29.8 grams per tonne gold over a four-metre interval (hole SMP-003); 7.03 grams per tonne gold over a four-metre interval (hole SMP-007) and 6.27 grams per tonne gold over a four-metre interval (hole SMP-006).
• Drilling and underground mapping indicate that the mineralization along the Main vein zone appears to be generally quite consistent and is open both along strike and continues at depth beneath the underground workings of the early-20th-century British mine at Semna.

"I am pleased to be able to provide the first set of preliminary drill results from the Semna prospect, which was our primary target from the recent RC drilling program," said Tonno Vahk, interim chief executive officer. "We have long regarded Semna as one of the most promising exploration targets on the Abu Marawat concession, and we are delighted with this first set of preliminary composite sample results from the first phase of RC drilling at Semna. The drilling has indicated that the high-grade, orogenic-style gold mineralization at Semna continues at depth beneath the old mine stopes and is also open along strike. These results further indicate the potential of the Abu Marawat concession to host multiple deposits with a variety of mineralization styles, and Aton continues to look forward to developing the concession over the long term."

Semna prospect

The Semna prospect is located approximately 27 kilometres east-northeast of the Hamama West deposit and 13 kilometres north-northeast of the Rodruin deposit and is accessed through desert tracks from either Hamama, Rodruin or the Abu Marawat deposit to the north. The Semna area has a long history of gold mining, during both ancient and modern times. There was archeological evidence in the area suggesting that mining took place during the early Arab, Ptolemaic and New Kingdom periods and possibly dates back as far as the Old Kingdom period, over 4,500 years ago. In modern times, Semna was exploited between 1904 and 1906 by two British companies, the Eridia (Egypt) Exploring Company Ltd. and the Fatira (Egypt) Exploring Company Ltd., which worked the Main vein on two underground levels. By about 1908, however, the British gold mining industry in Egypt had been almost totally eclipsed by the discovery of oil and was more or less moribund. There was also some further development work carried out at Semna in the 1950s by a subsidiary of the Egyptian Phosphate Company. It has been reported that the Semna mine had the widest vein exploited during the British era of mining in Egypt, which reached up to six-metre width in places, and the British companies reported mining grades of over two ounces per ton. Reports from the British Mining Journal from 1905 indicated that some remnant pillars within the ancient Pharaonic-era stopes assayed up to 5.5 ounces per ton of gold.

The mineralization at Semna appears to be mainly hosted in a granodiorite body that has been intruded into a package of mafic to intermediate composition metavolcanic rocks. Metasediments with BIF (banded iron formation) horizons outcrop to the west and north of the main Semna mine area. Small bodies of outcropping pink granites, possibly related to the Younger Granite suite, outcrop approximately 750 metres south of the old mine workings. There are four distinct mineralized zones -- the Main vein and South vein zones have been the primary focus of historic mining, but there are also workings developed on the North vein and Central vein zones. The mineralization is strongly structurally controlled and is hosted in a series of steeply south-dipping shear zones that contain the gold-bearing quartz veins. These subparallel quartz veins strike approximately east-west and dip 60 degrees to 75 degrees to the south, but the dip and strike are quite variable within each vein and the veins noticeably pinch and swell. The auriferous quartz veins carry variable amounts of accessory sulphide minerals and are typically quite gossanous and rich in iron oxides at surface as a response to weathering. Levels of copper are elevated, notably in the Main vein and North vein zones.

In 2017, Aton carried out a surface sampling program at Semna, reporting up to 5.17 grams per tonne gold over a 9.7-metre interval from surface channel sample profiles and individual assays of up to 10.8 grams per tonne gold from grab samples (see news release dated Nov. 22, 2017). This year, Aton has reported additional surface grab sample results from the immediate Semna mine area, including 27.6 grams per tonne gold, 24.0 grams per tonne gold and 16.95 grams per tonne gold (see news release dated May 29, 2023), and 25.70 grams per tonne gold and 16.55 grams per tonne gold from the wider Semna regional area (see news release dated July 31, 2023).

The Semna mine area has been heavily exploited by artisanal miners (or dahabbas) since about 2020, but the company is on cordial terms with them. The dahabbas completely vacated the Semna area prior to the commencement of the RC drilling, and there is a continuing agreement in place for them to not return. Artisanal mining has primarily targeted the Main vein zone (MVZ) in recent years, both from surface and also from underground, but numerous other mineralized structures and veins have also been mined by the dahabbas in recent years (see news releases dated May 29, 2023, and July 31, 2023).

Underground mapping at Semna

Recent artisanal mining has now exposed the eastern end of the lower level of the 20th-century British mine workings at an elevation of approximately 565 metres, which allows easy access into the old workings. Company geologists have this year carried out an underground survey of the old workings. The survey was carried out using a Leica DistoX hand-held laser, with inbuilt inclinometry and a sensitive magnetic compass for azimuth readings, and a traditional Silva mapping compass and tape measures for local measurements. A series of primary stations were established along the lower 565-metre level and these were surveyed in using multiple foresights and backsights. The survey was tied into the Universal Transverse Mercator grid system using an external station, which was sited a few metres outside the eastern entrance to the 565-metre level, and was accurately surveyed in using a Leica Viva GS15 differential GPS (Global Positioning System) at the same time the drill hole collars were picked up.

The survey along the 565-metre ore drive level established that the MVZ had been stoped out pretty much in its entirety both above and below it, from between approximately 558720E, approximately 45 metres from the eastern entrance of the drive, and 558550E over an approximately 170-metre strike length underground. The mineralization above the 565-metre level drive appeared to have been stoped out by the British miners during the 20th century, with some recent remnant pillar extraction by the dahabbas. The MVZ has also been recently mined to an approximate depth of approximately 10 to 15 metre below the 565-metre level by the artisanal miners.

Mapping of the recent workings has indicated that the dip of the MVZ is rather variable and ranges from about 56 degrees to 80 degrees, but always to the south, averaging about 70 degrees. The mapping indicates that the MVZ is a strong shear zone, which contains a white quartz vein, pinches and swells, and has a width of variability but typically between one metre to two metres. In places, the quartz vein branches into separate footwall and hangingwall veins, with the total width of vein and internal wall rock reaching up to at least six metres horizontally. The internal wallrock between the branches has been extensively worked and appears to contain abundant quartz vein splays from the main vein. In the deepest recent stopes, the quartz vein is typically 1.2 metres to 1.8 metres wide and is well mineralized. Observations from the recent underground mapping appear to confirm the earlier geological interpretations of the MVZ.

The vein itself consists of massive white quartz, which in the deepest stopes contains a sparse scattering of sulphide grains or less frequently ribbons and selvages of highly sulphidic vein material up to eight centimetres thick running parallel to the walls of the vein. The primary sulphide is pyrite, in places with subsidiary chalcopyrite, as well as other supergene and oxide copper minerals at higher elevations. In the deepest stopes, the vein itself is heavily sheared, and the sheared and altered vein appears to be well mineralized, carrying abundant sulphides. The vein has persistent sheared margins 0.2 metre to 0.5 metre wide that are also phyllic altered and locally sulphide rich. Above the 565-metre level, oxidation of the sulphides is practically complete and only red and brown iron oxides are present, often filling the cavities left by the oxidation of the original sulphides and giving rise to the characteristic dark red honeycombed material widely seen on surface. In some areas, the central part of the white quartz vein itself appears barren, and, in the deepest stopes beneath the 565-metre level, there is clear evidence that the artisanal miners were targeting the vein margins. This again confirms historical observations that the gold was primarily concentrated in sheared and altered wallrocks.

Two chip channel samples of one metre in width, across the quartz vein (1.8 metres wide at the sampled points), taken manually from the deepest underground stopes, returned assays of 9.06 grams per tonne gold and 4.08 grams per tonne gold (sample Nos. AHA-45649 and AHA-45650).

Semna gold mine RC drilling

Twenty-one RC drill holes, SMP-001 to SMP-020, were completed at the Semna prospect, for a total of 3,662 metres, during the recently completed RC drill program. Preliminary results are now available for holes SMP-001 to SMP-016, from four-metre composite samples (full details of the drill hole sampling procedure are provided in the next section).

Nine of the first 17 holes targeted the MVZ, with the other holes targeting the South vein zone (SVZ) and Central vein zone (CVZ) zones. Hole SMP-008 was abandoned due to the collar collapsing and was redrilled with hole SMP-008a.

Of the nine holes that targeted the MVZ, all holes, except SMP-005, intersected significant mineralization at moderate to high grades, with all the other eight holes intersecting a minimum of 3.43 grams per tonne gold over a four-metre composite sample interval. All mineralized intersections from the initial four-metre composite samples greater than 0.3 gram per tonne gold are provided in the attached table. Significant mineralized intervals from the MVZ included 14.63 grams per tonne gold over a 12-metre interval from 72-metre downhole depth (hole SMP-016), 29.8 grams per tonne gold over a four-metre interval from 136-metre downhole depth (hole SMP-003), 7.03 grams per tonne gold over a four-metre interval from 156-metre downhole depth (hole SMP-007), 6.27 grams per tonne gold over a four-metre interval from 116-metre downhole depth (hole SMP-006) and 5.37 grams per tonne gold over a four-metre interval from 184-metre downhole depth (hole SMP-004). The drill results suggest that the MVZ has a true width typically of a minimum of about three metres.

Holes targeting the SVZ and CVZ returned only sporadic mineralized intercepts, such as 2.61 grams per tonne gold over a four-metre interval from 40-metre downhole depth (hole SMP-014 on the CVZ) and 1.11 grams per tonne gold over a four-metre interval from 28-metre downhole depth (hole SMP-001 on the SVZ).

Discussion of results

This first-pass phase of drilling and underground mapping has confirmed the historical interpretations of the MVZ mineralization at Semna as being associated with a shear-hosted quartz vein that pinches and swells and carries locally very high to bonanza grades (for example, 29.8 grams per tonne gold over a four-metre interval in hole SMP-003). The mineralization is interpreted as being structurally controlled and orogenic in style. This style of mineralization is suggestive of significant depth potential.

The nine holes targeted the MVZ beneath the old British mine workings below the 565-metre ore drive level. The only hole that failed to intersect mineralization on the MVZ, SMP-005, was drilled beneath the eastern end of the 565-metre level where the MVZ shear had not been stoped, but it did intersect 1.60 grams per tonne gold over a four-metre interval from 60-metre downhole depth, in a possible separate structure, in the hangingwall of the MVZ shear.

The nine holes drilled on the MVZ indicate good continuity of the mineralization both along a strike length of approximately 200 metres and at depth beneath the old workings. Recent underground surveying and mapping have shown that the mineralization was largely continuous from surface at a maximum elevation of 620 metres, down to an elevation of approximately 550 metres, which represents the current base of the artisanal workings, although it has mostly been exploited by now, with very little potential for any recoverable mineralization remaining above the 565-metre level. The current drilling intersected mineralization to a minimum elevation of approximately 460 metres in hole SMP-004 (5.37 grams per tonne gold over a four-metre interval), with mineralization intersected in the deepest hole on the MVZ on each of the four drilled sections.

The two holes drilled on the easternmost section, 558770E, SMP-015 and SMP-016, both intersected two separate mineralized zones. It is not clear if these two mineralized zones are actually two separate zones or if they represent fault-repeated offsets of the MVZ shear.

The deepest intersections on sections 2, 3 and 4 are all jogged off south of the predominant approximately 70-degree to 75-degree dip of the MVZ. At the current drill spacing. it is unclear if this is due to a change in orientation of the MVZ structure, possible fault offset or if the deepest mineralized intersections represent en echelon mineralized zones. However the MVZ mineralization is open at depth and along strike to both the east and west after this first phase of drilling.

Sampling and analytical procedures

The RC holes were drilled at 5.75-inch or 5.5-inch diameter and the bulk percussion chip samples were collected directly into prewritten large plastic bags from the cyclone every metre, numbered with the hole number and hole depths, and laid out sequentially at the drill site. Between each metre of drilling, the cyclone and top box were cleaned out with compressed air. The bags were logged on the drill sites by Aton geologists. The bulk one-metre samples were weighed and subsequently riffle split through a three-tier splitter on site by Aton field staff to produce an approximately one-eighth split, which was collected in cloth bags, numbered, and tagged with the hole number and depth. The splitter was cleaned with compressed air between each sample. The reject material from this initial bulk split was rebagged, labelled and tagged, and retained on the drill sites. A representative sample of each metre was washed and stored in marked plastic chip trays, each containing 20 metres of samples, photographed, and retained on site as a permanent record of the drill hole.

The one-metre split samples, weighing approximately five kilograms each, were then transported to the Rodruin sample processing facility, where they were one-half riffle split into two separate subsamples, weighing approximately 2.5 kilograms. One of these subsamples was marked and labelled and retained at the laboratory for storage. The second one-metre subsamples were then combined into four-metre composite samples, weighing approximately 10 kilograms. These were thoroughly mixed and again riffle split to produce nominal approximately 250-gram-to 500-gram four-metre composite samples, which were dispatched to ALS Minerals for analysis. Again, the splitter was cleaned with compressed air between each sample. The four-metre composite samples were allocated new sample numbers. The bulk reject material from the riffle-split four-metre composite samples was disposed of. Quality assurance/quality control samples were inserted into the four-metre composite sample stream at a rate of approximately one certified reference material (or standard sample) every 60 samples, one blank sample every 30 samples and one field duplicate split sample every 30 samples.

The four-metre composite samples were shipped to ALS Minerals sample preparation laboratory at Marsa Alam, Egypt, where they were pulverized to a size fraction of better than 85 per cent passing 75 microns. From this pulverized material, a further subsample was split off with a nominal approximately 50-gram size, which was shipped on to ALS Minerals at Rosia Montana, Romania, for analysis. The four-metre composite samples were analyzed for gold by fire assay with an atomic absorption spectroscopy (AAS) finish (analytical code Au-AA23). High-grade samples (gold greater than 10 grams per tonne) were reanalyzed using analytical code Au-GRA21 (also fire assay, with a gravimetric finish).

Upon receipt of the final four-metre composite assay results from the full Semna program from ALS, a number of the retained one-metre subsamples will be selected by a senior Aton geologist for reassaying, corresponding to four-metre composite assays deemed to be of significance. The selected one-metre subsamples will again be riffle split to produce nominal approximately 250-gram to 500-gram one-metre split samples, which will be allocated new sample numbers. These will be dispatched to ALS Minerals for the same sample preparation at Marsa Alam and for subsequent analysis at Rosia Montana. The bulk reject material from the one-metre subsample splits will be rebagged and retained on site for storage at Rodruin. Quality assurance/quality control samples will be inserted into the one-metre split sample stream at a rate of approximately one standard every 30 samples, one blank sample every 15 samples and 1 field duplicate split sample every 15 samples.

The one-metre split samples will again be analyzed for gold by fire assay (analytical code Au-AA23) and for silver, copper, lead and zinc using an aqua regia digest followed by an AAS finish (analytical code AA45). Any high-grade gold samples (gold greater than 10 grams per tonne) will again be reanalyzed using analytical code Au-GRA21 (also fire assay, with a gravimetric finish). Any high-grade silver and base metal samples (silver greater than 100 grams per tonne and copper, lead and zinc greater than 10,000 parts per million or greater than 1 per cent) will be reanalyzed using the ore-grade technique AA46 (also an aqua regia digest followed by an AAS finish).

All intersections herein reported relate to four-metre composite samples; results from the subsequent one-metre splits will be reported when they become available.

About Aton Resources Inc.

Aton Resources is focused on its 100-per-cent-owned Abu Marawat concession, located in Egypt's Arabian-Nubian Shield, approximately 200 kilometres north of Centamin's world-class Sukari gold mine. Aton has identified numerous gold and base metal exploration targets at Abu Marawat, including the Hamama deposit in the west, the Abu Marawat deposit in the northeast and the advanced Rodruin exploration prospect in the south of the concession. Two historic British gold mines are also located on the concession at Sir Bakis and Semna. Aton has identified several distinct geological trends within Abu Marawat, which display potential for the development of a variety of styles of precious and base metal mineralization. Abu Marawat is 447.7 square kilometres in size and is located in an area of excellent infrastructure; a four-lane highway, a 220-kilovolt power line and a water pipeline are in close proximity, as are the international airports at Hurghada and Luxor.

Qualified person

The technical information contained in this news release was prepared by Javier Orduna, BSc (honours), MSc, MCSM, DIC, MAIG, SEG(M), exploration manager of Aton Resources Inc. Mr. Orduna is a qualified person under National Instrument 43-101, Standards of Disclosure for Mineral Projects.

We seek Safe Harbor.