Mr. Tim Crossley reports

ADYTON REPORTS COMPLETION OF LAND OWNERSHIP AND BASELINE FIELD WORK AT WAPOLU JOINT VENTURE

Adyton Resources Corp.'s 50/50 joint venture partner, East Vision Investment Holdings (EVIH), has completed both land ownership mapping and baseline social and environmental base line work at its Wapolu gold project, Fergusson Island, Papua New Guinea.

Key highlight

Adyton's JV partner, EVIH, is the operator and has been progressing a number of key enabling work streams to satisfy the requirements for both mining lease and environment permit applications. In parallel, EVIH has also been progressing metallurgical testwork to inform the Wapolu flowsheet design and resource modelling and meeting with a range of equipment suppliers in preparation to place orders for long lead items with the goal of production in the second half of 2026.

Tim Crossley, chief executive officer, stated:

"We are pleased with the progress being made by EVIH and remain confident that, with strong execution and a timely assessment by the Mineral Resources Authority (MRA) and Conservation and Environment Protection Authority (CEPA), together we can achieve first production at Wapolu in 2H26. Although it is early days, this significant progress bodes well for the JV's near-term development plans for a shallow, open-pit surface mining operation at Wapolu."

Gary Wang, chief executive officer, EVIH, stated:

"We have now completed more than 8,000 m of drilling at Fergusson Island, and my team has been working on meeting the requirements for our mining lease and environment permit applications for the restart of the old Wapolu operation. We are also well advanced in completing metallurgical testwork and finalizing the flowsheet design for the Wapolu process plant."

Project update

Adytons's JV partner, EVIH, has completed the current phase of drilling at both Wapolu and Gameta. Due to a large back log in samples being processed through a Lae laboratory in PNG, Gameta drill core samples are being dispatched to international laboratories. Key activities are now focused on updating resource reports, metallurgical testing, equipment selection, social and environment base line studies, and land ownership boundary mapping.

At Adyton's projects, numerous local jobs have been created, providing employment opportunities in areas with limited job prospects.

Background

Adyton's gold projects in JV with EVIH are in PNG on easily accessible island locations. The Gameta and Wapolu projects are located on Fergusson Island in the Milne Bay province of PNG which also hosts the Woodlark and Misima projects.

The Wapolu gold project is a proposed restart of the past-producing Wapolu mine which operated in the mid 1990s producing about 9,000 ounces of gold before shutting down due to low gold prices. The restart of Wapolu will be substantially easier than a green field project, being enabled by significant existing infrastructure such as airstrips, workshop and warehouse structures, basic wharf infrastructure, and tailings impoundments.

The neighbouring Gameta project is an advanced exploration asset being prepared to be taken into permitting and development, that lies approximately 30 kilometres from Wapolu and has the benefit of being able to leverage some of the Wapolu infrastructure, such as the airstrip.

As previously reported, the Fergusson projects are under an earn-in joint venture agreement with EVIH, granting EVIH the right to acquire up to 50-per-cent ownership interest in the project. This interest is contingent on the achievement of certain development milestones and a total investment of up to $9.5-million (U.S.), allocated as follows:

• $8.5-million (U.S.) to finance project expenditures;
• $1.0-million (U.S.) as a direct payment to the company ($500,000 (U.S.) paid);
• Once the projects are permitted and a financial investment decision made by the JV, the agreement provides for EVIH to provide a shareholder loan (8-per-cent interest charge) to the JV to finance the project development capital which would carry Adyton to production on the Fergusson projects.

While this JV agreement at its end point results in Adyton diluting its interest at Fergusson Island to 50 per cent, the agreement does provide for a complete carried funding solution to production for Adyton at its Fergusson projects.

For additional details, please refer to the official announcement dated May 13, 2024.

Resource estimate

The existing Gameta and Wapolu mineral resource estimate is highlighted in Table 1, with resources open at depth and along strike. The current drill programs at both Wapolu and Gameta are in part designed to test depth and strike extensions but also importantly to increase resource confidence to enable progression to establish reserve estimates and the mining licence (ML) application.

About Adyton Resources Corp.

Adyton Resources is focused on the development of gold and copper resources in world-class mineral jurisdictions. It currently has a portfolio of highly prospective mineral exploration projects in Papua New Guinea on which it is exploring to expand its identified gold inferred and indicated mineral resources and expand on its recent significant copper drill intercepts on the 100-per-cent-owned Feni Island project. The company's mineral exploration projects are located on the Pacific Ring of Fire on easy to access island locations which hosts several globally significant copper and gold deposits including the Lihir gold mine and Panguna copper/gold mine on Bougainville Island, both neighbouring projects to the company's Feni Island project.

Adyton has a total mineral resource estimate inventory within its PNG portfolio of projects comprising indicated resources of 173,000 ounces gold and inferred resources of two million ounces gold.

The Feni Island project currently has a mineral resource prepared in accordance with National Instrument 43-101 dated Oct. 14, 2021, which has outlined an initial inferred mineral resource of 60.4 million tonnes at an average grade of 0.75 gram per tonne Au, for contained gold of 1.46 million ounces, assuming a cut-off grade of 0.5 g/t Au. See the NI 43-101 technical report entitled "NI 43-101 Technical Report on the Feni Gold-Copper Property, New Ireland Province, Papua New Guinea," prepared for Adyton Resources by Mark Berry (MAIG), Simon Tear (MIGI PGeo), Matthew White (MAIG) and Andy Thomas (MAIG), each an independent mining consultant and qualified person as defined in NI 43-101,available under Adyton's profile on SEDAR+. Mineral resources are not mineral reserves and have not demonstrated economic viability.

The Fergusson Island project currently has a mineral resource prepared in accordance with NI 43-101 dated Oct. 14, 2021, which outlined an indicated mineral resource of 4.0 million tonnes at an average grade of 1.33 g/t Au for contained gold of 173,000 ounces and an inferred mineral resource of 16.3 million tonnes at an average grade of 1.02 g/t Au for contained gold of 540,000 ounces. See the technical report entitled "NI 43-101 Technical Report on the Fergusson Gold Property, Milne Bay Province, Papua New Guinea," prepared for Adyton Resources by Mr. Berry (MAIG), Mr. Tear (MIGI PGeo), Mr. White (MAIG) and Mr. Thomas (MAIG), each an independent mining consultant and qualified person as defined in NI 43-101, available under the company's profile on SEDAR+. Mineral resources are not mineral reserves and have not demonstrated economic viability.

Qualified person

The scientific and technical information contained in this press release has been prepared, reviewed and approved by Dr. Chris Bowden, PhD, GCMEE, FAusIMM (CP), FSEG, the chief operating officer and chief geologist of Adyton, who is a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

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