Mr. Darren Klinck reports

ARRAS MINERALS CLOSES UPSIZED $16.1 MILLION FINANCING

Arras Minerals Corp. has closed its previously announced brokered and non-brokered private placements (please refer to the company's March 20, 2025, news release). A total of 18,941,177 common shares were issued at a price of 85 cents per share, for aggregate gross proceeds of approximately $16.1-million. The offering was oversubscribed with key participation from both new and existing shareholders, including Teck Resources Ltd.

The brokered portion of the offering, pursuant to which the company issued 15,119,708 shares, was completed through a syndicate of agents led by Haywood Securities Inc., and including Ventum Financial Corp., Canaccord Genuity Corp. and SCP Resource Finance LP. The company experienced significant interest in the offering and subsequently upsized the non-brokered portion of the offering. Pursuant to the non-brokered offering, the company issued 3,821,469 shares at the issue price. A major participant in the non-brokered offering was Teck, which increased its ownership interest in the company to approximately 9.9 per cent.

Darren Klinck, president and director, commented: "We are very pleased to close this upsized financing, and would like to thank current and new shareholders for their continued support of the company. This marks another important step for Arras as we have added a number of new institutional shareholders to the share register. The company is fully financed for our planned phase 2 exploration program at the Elemes project, and we now have significant flexibility to adjust and expand priorities well into 2026. Activities in Kazakhstan are ramping up and we are currently preparing to commence work programs later this month."

The shares issued under the brokered offering were offered to purchasers pursuant to: (i) the accredited investor exemption under National Instrument 45-106, Prospectus Exemptions; and (ii) the listed issuer financing exemption (LIFE) under Part 5A of NI 45-106, in all the provinces of Canada, except Quebec. The shares issued under the LIFE are not subject to a statutory hold period pursuant to applicable Canadian securities laws. The shares issued under the accredited investor exemption are subject to a statutory hold period expiring on Aug. 11, 2025. Purchasers under the brokered offering received a 1:1 ratio of shares issued pursuant to the accredited investor exemption and shares issued pursuant to the LIFE. In connection with the brokered offering, the agents received a cash commission of 6.0 per cent of the gross proceeds raised from the brokered offering.

The company will use the net proceeds from the offering to finance exploration and advancement of the company's projects in Kazakhstan, and for general corporate purposes, as further described in the company's offering document under the LIFE dated March 20, 2025.

Certain related parties of the company participated in the offering. The issuance of shares to related parties is considered to be a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 (and Policy 5.9) as the fair market value of the shares issued to such persons does not exceed 25 per cent of the company's market capitalization.

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 Elemes copper-gold porphyry project, and 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 partnership with Teck Resources, in which Teck may sole-finance a $5-million (U.S.) generative exploration program over a portion of the Arras licence package in 2024 to 2025. The company's shares are listed on the TSX Venture Exchange under the trading symbol ARK and on the OTCQB under the trading symbol ARRKF.

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