Dr. Keith Barron reports

AURANIA PROVIDES UPDATE ON NEW MINING SERVICE FEE IN ECUADOR

Aurania Resources Ltd. has provided an update on the Ecuadorian government's recently imposed new mining service fee (Tasa de Fiscalizacion Minera or TASA) on the resource sector.

As previously disclosed in a press release dated June 11, 2025, the resolution put forth by the Ecuadorian Control and Regulation Agency (ARCOM) in relation to new administrative fees for the mining sector has now taken effect and the company has received notice of the fee as it applies to its project in Ecuador. The resolution was published in the official registry on June 20, 2025, and on June 27, 2025, ARCOM issued a resolution outlining the official regulations detailing the payment collection mechanism for the administrative fee. Under this new regulation, ARCOM has requested that the company pay $2,012,618 (U.S.) by July 31, 2025, equivalent to one month of the total annual administrative fee of $24,151,420. These annual fees amount to more than Aurania's current market capitalization and present an unsustainable cost burden for Aurania and other companies operating within the sector. These new fees are especially burdensome for companies working in early stage exploration, which is a critical component of the mining pipeline, as stand-alone exploration-stage companies typically do not generate revenue and therefore rely solely on investment through capital markets to finance their projects.

Aurania's chairman, president and chief executive officer, Dr. Keith Barron, commented: "Aurania has a long history of working and investing in Ecuador. I'm a big believer in our project there, and I value the co-operative relationships that we have built to date. However, the new fees are excessive and disproportionate. The mining chamber along with other companies working in Ecuador are appalled by the administrative fee. As we continue to work on possible solutions we will always endeavour to be fully transparent with our shareholders and will continue to provide updates on this evolving situation."

To the company's knowledge, four constitutional challenges against the new administrative fees have been presented in Ecuador and are being analyzed by the court to determine if the claims will be accepted. The decision whether or not to accept the claims may take several months and, if accepted, the constitutional challenges could take several years. In the meantime, if the claims are accepted, ARCOM may or may not be directed to halt the collection of the fees.

The company will wait for these procedures to follow their course, and it will assess its legal rights and options for further courses of action.

2025 concession fees

In March, 2025, the company filed a request to enter into an agreement for the deferred payment of the annual concession fees with the Ecuadorian tax authority (SRI) which total $2,441,227 (U.S.) -- see press release dated March 31, 2025. As part of this process, the company will make a first payment of $488,245 (U.S.) equivalent to 20 per cent of the 2025 concession fees plus accumulated interest by Aug. 8, 2025. The company expects to continue to negotiate the payment terms for the balance of its 2025 concession fees. A failure to reach an agreement could result in the remaining balance becoming immediately due and payable and a potential forfeiture of the mineral concessions.

About Aurania Resources Ltd.

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America. Its flagship asset, The Lost Cities-Cutucu project, is located in the Jurassic metallogenic belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

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