Mr. Darren Klinck reports

ARRAS MINERALS CLOSES C$5.2 MILLION NON-BROKERED FINANCING

Further to Arras Minerals Corp.'s news release dated May 29, 2024, it has closed its previously announced non-brokered private placement for an aggregate of 20,268,662 units of the company at a price per unit of 26 cents for aggregate gross proceeds of approximately $5.3-million. Pursuant to the offering, Teck Resources Ltd. acquired 1,141,000 units and, following closing, holds approximately 9.3 per cent of the issued and outstanding common shares of the company (on a partially diluted basis).

Darren Klinck, president of Arras, commented: "We are very pleased to close this upsized financing and wish to acknowledge and express appreciation for the strong endorsement our shareholders, including Teck, have shown in supporting the next exploration phase for Arras in Kazakhstan. Our third summer field program is well under way and we look forward to having steady news flow over the coming months from the more than 3,300 sq km land package we have assembled in northeastern Kazakhstan. During 2024, we expect to be drill testing targets at Elemes, Tay as well as on projects within the Arras-Teck strategic exploration alliance. As an early mover into Kazakhstan approximately three years ago, Arras is well positioned to continue to rapidly evaluate, advance and test copper-gold targets across the third-largest land package assembled for copper exploration in the country."

Each unit comprised one common share and one-half of one non-transferable common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one additional common share at a price of 40 cents for a period of three years from the closing of the offering.

In the event the volume weighted average trading price of the common shares on the TSX Venture Exchange meets or exceeds 60 cents for 15 consecutive trading days at any time after four months and one day following closing of the offering, the company shall have the option, but not the obligation, at any time thereafter to accelerate the expiry date to a date that is 30 days following the date of issuance of a news release by the company announcing the acceleration of the expiry date.

The securities issued pursuant to the offering are subject to a four-month hold period in Canada are subject to United States resale restrictions under U.S. securities laws as applicable. Finders' fees were paid on a portion of the offering.

Certain insiders have participated in the offering and thus a portion of the offering constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). Pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, the company is exempt from obtaining a formal valuation and minority approval of the company's shareholders as the fair market value of the insider participation is below 25 per cent of the company's market capitalization as determined in accordance with MI 61-101.

The net proceeds of the offering will be used to advance exploration activities at the company's projects in northeastern Kazakhstan and for general corporate purposes.

Qualified person: The scientific and technical disclosure for this news release has been prepared under supervision of and approved by Matthew Booth, vice-president of exploration, of Arras Minerals, a qualified person for the purposes of National Instrument 43-101. Mr. Booth has over 19 years of mineral exploration experience and is a qualified person member of the American Institute of Professional Geologists (CPG 12044).

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). In December, 2023, the company entered into a strategic alliance with Teck Resources Ltd. in which Teck will sole-finance a $5-million (U.S.) generative exploration program over a portion of the Arras licence package in 2024 to 2025 focusing on critical minerals. The company's shares are listed on the TSX-V under the trading symbol ARK.

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