Mr. Tim Barry reports

ARRAS MINERALS ANNOUNCES STRATEGIC ALLIANCE WITH MAJOR CANADIAN MINING COMPANY TO FOCUS ON CRITICAL MINERALS IN KAZAKHSTAN

Arras Minerals Corp. has entered into an agreement with Teck Resources Ltd. to form a strategic alliance focusing on exploration for critical minerals on Arras's strategically located licence package in the Bozshakol-Chingiz magmatic arc located in Pavlodar, Kazakhstan.

The strategic alliance does not include the Beskauga copper-gold project, nor the regional exploration licences Stepnoe, Ekidos, Aimandai and Elemes.

Highlights:

• Teck to solely finance generative exploration work through 2025, with initial expenditures of $5-million (U.S.) before Dec. 31, 2025, across Package A and Package B, totalling approximately 1,736 square kilometres.
• Following the initial generative exploration phase, Teck will have the option to select up to four designated properties, totalling 120 square kilometres each, where Teck will finance exploration expenditures of up to $47.5-million (U.S.) per project to have the right to earn up to a 75-per-cent interest in each project.
• Teck will reimburse Arras for certain project-related expenses made to date by Arras through a $1-million (U.S.) cash payment on signing and potentially other payments in the future should Teck elect to advance through future phases.
• Arras will act as manager for the initial year of the two-year generative program, with Teck holding the option to assume the role of manager thereafter.

Tim Barry, chief executive officer, commented: "As an early-mover into Kazakhstan 2.5 years ago, following the substantial reforms to the business environment and mining law, Arras has assembled the third-largest land package in the country, next to Rio Tinto and Fortescue, and is specifically focused on copper in the highly prospective Bozshakol-Chingiz magmatic arc. We recently completed our second summer field season across the regional licence package and are now analyzing more than 50,000 soil samples we have collected across the approximately 3,300-square-kilometre licence package. This program was based on the successful 2022 field program where more than 16,000 soil samples identified new targets to follow up."

Mr. Barry added: "We believe that the exploration work we have undertaken over the past two summer field seasons, representing in most cases the first material modern exploration work done across these licences since pre-1990, have delineated substantial prospects for a material copper discovery, akin to the successful operations of the Bozshakol and Nurkazgan mines located within the same geological belt."

Darren Klinck, president, commented: "We are very pleased to be partnering and working with Teck to advance a portion of our regional licence package in Kazakhstan. Following their strategic equity investment into Arras last November, this agreement provides Teck the option to invest significant funds into critical-minerals-focused exploration through Arras's project portfolio and it is a clear indication of the potential that exists in the Bozshakol-Chingiz magmatic arc. This initiative in Kazakhstan highlights the emerging opportunities in the country and also demonstrates Kazakhstan's strong position to be a key player globally as the world seeks to secure the necessary critical minerals required over the coming decades."

Summary of strategic alliance agreement terms:

• Teck has the option to sole-finance $2.5-million (U.S.) per licence package for a generative exploration program totalling $5-million (U.S.) through 2025. Of this, $2-million (U.S.) ($1-million (U.S.) on each package) is a firm commitment to complete in 2024.
• Teck will reimburse previous exploration expenditures made by Arras for the amount $500,000 (U.S.) for each of Package A and Package B, totalling $1-million (U.S.).
• Following the completion of the initial generative exploration phase of the strategic alliance agreement, Teck will have the option to select up to four designated properties from within the strategic alliance agreement licences. Each designated property shall be contiguous and no larger than 120 square kilometres, with such designation subject to ministerial approval. Teck will make a cash payment of $500,000 (U.S.) to Arras for each designated property as an additional reimbursement for previously invested exploration expenditures.
• First option: Teck may elect to sole-finance $5.5-million (U.S.) over the next two years ($2.5-million (U.S.) committed in year 1) and, on completion, will be deemed to own 51 per cent of the designated property.
• Second option: Teck may elect to sole-finance $18-million (U.S.) over the next three years ($5-million (U.S.) committed in year 1) to earn an additional 14 per cent (total of 65 per cent) of the designated property.
• Third option: Teck may elect to sole-finance $24-million (U.S.) over four years ($6-million (U.S.) committed in year 1) to earn an additional 10 per cent (total of 75 per cent) of the designated property.
• Arras will act as manager for the initial year of the generative exploration phase and Teck will have the right to assume the role of manager thereafter.
• Arras and Teck will establish a technical committee to develop and review the annual exploration programs, with Teck having final approval.

Elemes, Aimandai, Stepnoe and Ekidos exploration licences

The Elemes, Aimandai, Stepnoe and Ekidos exploration licences, totalling more than 1,150 square kilometres, are not subject to the strategic alliance agreement, but Teck will retain a right of first offer over Elemes and Aimandai should Arras wish to seek partnership proposals in the future.

Arras successfully collected more than 30,000 soil samples from the Elemes and Aimandai licences during the summer field season this year. This program followed up on the inaugural field program in 2022, where new targets were identified. The company expects to have these samples analyzed and modelled in Q1 2024, and will evaluate opportunities to drill test certain high-priority targets in 2024.

Webinar -- Friday, Dec. 8

The company will host a webinar to discuss the strategic alliance in more detail on Friday, Dec. 8, at 8 a.m. PT. Please contact the company at info@arrasminerals.com for further information. A replay of the webinar will be made available on the company's website.

Qualified person

The scientific and technical disclosure included in this news release has been prepared under supervision of and approved by Mr. Barry, chief executive officer and director of Arras Minerals, who is also a member and chartered professional geologist (MAusIMM CP (geo)) of the Australasian Institute of Mining and Metallurgy. Mr. Barry has sufficient experience, relevant to the styles of mineralization and type of deposits under consideration, and to the activity that he is undertaking, to qualify as a qualified person (QP) for the purposes of National Instrument 43-101 -- Standards of Disclosure of Mineral Projects.

About Arras Minerals Corp.

Arras is a Canadian exploration and development company advancing a portfolio of copper and gold assets in northeastern Kazakhstan, including the option agreement on the Beskauga copper and gold project. The company has established the third-largest licence package in the country prospective for copper and gold (behind Rio Tinto and Fortescue Metals Group). The company's shares are listed on the TSX Venture Exchange under the trading symbol ARK.

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