Mr. Lewis Lawrick of Magna Terra reports

MAGNA TERRA SIGNS OPTION AGREEMENT WITH ANDEAN METALS FOR THE LUNA ROJA PROJECT IN SANTA CRUZ, ARGENTINA

Magna Terra Minerals Inc. and Andean Metals Corp. have entered into a definitive option agreement for Andean Metals to have the right to acquire a 100-per-cent interest in the Luna Roja project, located in Santa Cruz province, Argentina, from the company.

Under the terms of the agreement, Andean can earn a 100-per-cent interest in the project for total consideration of $2,375,000, payable in cash and Andean common shares as outlined in the attached table.

Additionally, Magna Terra shall retain the right to a nominee on the board of directors of Andean, under certain terms and conditions as defined in the agreement.

"We are very excited to partner with the Andean Metals team on the drill-ready Luna Roja precious metals project in the prolific Deseado massif region of Santa Cruz province, Argentina, home to world-class mines like Cerro Negro (Newmont), Cerro Moro (Pan American Silver), Cerro Vanguardia (AngloGold Ashanti), as well as others. The Deseado massif remains a significantly underexplored geological domain known for hosting large low-sulphidation epithermal precious metals systems. The Luna Roja project boasts an early-stage drill epithermal gold-silver discovery at Cruz del Sur and a three-kilometre-long zone of anomalous geochemistry that highlights the discovery potential of the project. This transaction further supports our corporate strategy of leveraging our deep project portfolio to provide non-dilutive liquidity to advance our priority exploration assets, while maintaining upside exposure to these projects through a growing portfolio of equity ownership and royalties," stated Lew Lawrick, president and chief executive officer, Magna Terra Minerals.

"This transaction represents a significant step forward for Andean Metals as we establish a strong foothold in one of the most geologically prospective and underexplored gold-silver belts in the world. Luna Roja offers compelling discovery potential, supported by robust early-stage results and proximity to world-class operations. Our team is excited to build on Magna Terra's excellent technical work and begin advancing Luna Roja through systematic exploration and drilling. We believe this partnership highlights our commitment to unlocking value through disciplined exploration and strategic collaboration," stated Joaquin Mignaquy, CEO, Andean Metals.

Luna Roja project highlights:

• Approximately 10,000 hectares in three exploration licences;
• Accessible year-round via road access from Fitz Roy, located 80 kilometres (km) to the northeast;
• Centred along a three-kilometre section of the northwest-striking Via Lactea fault, lying just 75 km northwest of Cerrado Gold's Minera Don Nicholas mine infrastructure and 30 km north-northwest of the Los Calandrias mining and exploration tenements;
• 2019 discovery hole drilled by Magna Terra -- LR DDH002 -- intersected 75.0 metres (m) of 0.62 gram per tonne (g/t) gold (Au) and 5.6 g/t silver (Ag) (from 37.0 m to 112.0 m). The deepest part of the zone, which is oxidized, included 42.0 m of 1.01 g/t Au and 4.6 g/t Ag (from 68.0 m to 110.0 m), suggesting increased grade with depth;
• A three km by 800 m striking Au trend underlain by anomalous soil geochemistry and induced polarization (IP) geophysical signature;
• Multiple drill-ready targets in three distinct surface mineralized horizons, including the Estrella del Norte, Orion, Cruz del Sur and Signos target areas.

The Luna Roja project is Magna Terra's most advanced exploration asset in Argentina, located in the prolific Deseado massif region of Santa Cruz province, approximately 75 km to the northwest of the new Don Nicolas mine and 30 km to the north-northwest of the Las Calandrias project. The project is accessible year-round and benefits from access to infrastructure, including roads and power and water.

Luna Roja's geology includes rhyolitic volcanic rocks with intense silicification and hydrothermal alteration, typical of productive low-sulphidation gold systems in the region. The project is centred along a three km section of the northwest-striking Via Lactea fault with coincident IP resistivity and chargeability anomalies, and intermittently exposed low-sulphidation epithermal Au-Ag veins and breccias.

Exploration work to date at Luna Roja includes 360 rock chip and float samples, 741 trench samples, 715 soil samples, and 17.6 line km of IP surveying. In 2019, Magna Terra completed eight diamond drill holes, totalling 1,184 metres, in a first-phase drill program that led to the discovery of a significant gold-silver mineralized zone at Cruz del Sur (see Magna Terra news release dated April 16, 2019).

Highlight assays from the initial drilling program include:

• 75.0 m of 0.62 g/t Au and 5.6 g/t Ag (from 37.0 m to 112.0 m), including 42.0 m of 1.01 g/t Au and 4.6 g/t Ag (from 68.0 m to 110.0 m) in drill hole LR_DDH002;
• 51.4 m of 0.26 g/t Au and 9.37 g/t Ag (from 44.6 m to 96.0 m), including 2.0 m of 1.08 g/t Au and 79.60 g/t Ag (from 62.0 m to 64.0 m) in drill hole LR-DDH001.

Exploration work to date has identified gold intercepts at shallow depths, with the potential for future exploration to identify geologic controls to the mineralization, and to expand the mineralized footprint and establish continuity. Luna Roja is well positioned for additional near-term discovery, potential resource delineation and possible future development, supported by a strong regional geological framework and positive early-stage results.

The Luna Roja project is subject to a 1-per-cent NSR (net smelter return) royalty, payable to Orogen Royalties Inc.

Andean will be focusing on advancing the Luna Roja project and the parties will not be moving forward at this time with an agreement for the Boleadora project (as previously disclosed in the news release dated July 28, 2025). The Boleadora project remains available for purchase or option.

In connection with the agreement, the company will pay a 5-per-cent finder's fee upon receipt of each payment from Andean.

Qualified person and technical disclosure

This news release has been reviewed and approved by David A. Copeland, PGeo, a non-independent consultant to the company and a qualified person as defined under National Instrument 43-101, Standard for Disclosure for Mineral Projects.

Sampling of drill core from the 2019 program at Luna Roja was carried out with core being cut by angle grinder and half of the core retained for logging and potential reanalysis. Blind standards, blanks and duplicates were inserted into the sample chain accounting for 10 per cent of samples. Samples were then delivered, by Magna Terra staff, to Andesmar in Caleta Olivia, Santa Cruz, Argentina, from where they were transported to ALS Chemex Laboratories in Mendoza, Argentina, for gold fire assay and multielement analysis.

All technical disclosure contained in this news release with respect to the project was supplied by Magna Terra, and Andean and its directors and officers have relied on Magna Terra for such information.

About Magna Terra Minerals Inc.

Magna Terra is a precious-and-critical-metal-focused exploration company, headquartered in Toronto, Canada. Magna Terra is focused on acquiring and advancing its high-potential mineral projects in Atlantic Canada and Argentina, while generating value for shareholders and minimizing shareholder dilution through option and joint venture partnerships where appropriate, leveraging its ability to explore, grow and transact projects. The company is focused on exploring: its 100-per-cent-owned Humber copper-cobalt project in Newfoundland and Labrador; its 100-per-cent-owned Rocky Brook gold and critical metals project in the historic Bathurst mining camp of New Brunswick; and its 100-per-cent-owned Cape Spencer gold project in New Brunswick. In addition, the company has optioned the Great Northern project in Newfoundland to Gold Hunter Resources Inc. for total cash and share consideration of $9.5-million over a two-year period, and currently holds an approximately 28.9-per-cent equity interest in Gold Hunter. The company has also optioned the Luna Roja project in Argentina to Andean Metals for total cash and share consideration of $2,375,000 over a four-year period. Further, the company maintains a significant exploration portfolio in the province of Santa Cruz, Argentina, which includes its large 100-per-cent-owned Boleadora project recently retained from Newmont Corp., as well as several additional district-scale drill-ready projects available for purchase or option/joint venture.

About Andean Metals Corp.

Andean Metals is an Argentina-focused mineral exploration company, with a strong local technical team backed by experienced capital markets professionals. Andean is a British Columbia corporation that is a reporting issuer in the provinces of British Columbia and Alberta.

We seek Safe Harbor.