Mr. Pierre Gauthier reports

AUXICO ANNOUNCES APPROVAL OF ENVIRONMENTAL LICENSE FOR SMALL SCALE OPEN PIT MINING AT MINASTYC PROJECT IN COLOMBIA

Auxico Resources Canada Inc. has received approval for a temporary, two-year environmental licence for small-scale open-pit mining from the Colombian environmental authority, the Regional Autonomous Corp. of the Orinoquia (Corporinoquia). This follows the recent approval of the environmental impact assessment study (EIA) for the company's Minastyc property, as announced on April 12, 2023.

The ability to exploit and commercialize the Minastyc property is a key advancement, with timing that coincides well with recent metallurgical testing developments for the separation of light and heavy rare earths. Auxico has demonstrated the ability to process concentrate samples taken from the Minastyc property into light and heavy rare earth commercial concentrates; dysprosium up to 16.1 per cent (concentrated 20 times from its initial feed) and terbium up to 3.42 per cent (refer to press release dated April 20, 2023). Dysprosium, one of the world's most magnetically susceptible elements, along with terbium, are two heavy rare earths crucial for weapons systems as well as electric vehicle motors, in order to maintain an electric powertrain magnet's coercivity through repeat cycles of heating and cooling. Only automotive manufacturers with access to heavy rare earths could expect to produce EVs in 2030, while those without them may be selling their EVs factories. Auxico's Minastyc property has one of the highest-grade heavy rare earth deposits globally according to industry expert Jack Lifton.

The Minastyc project has received approvals for the exploitation and beneficiation of minerals, including niobium, tantalum, vanadium, zirconium, tin and gold, and the noted minerals respective concentrates, per resolution No. 500.36.22.2089 from the Colombian environmental authority, Corporinoquia, dated Dec. 30, 2022.

This approval and resolution No. 500.36.22.2089 authorize Auxico to execute its first phase of the Minastyc project, as per regulatory decree No. 1666 issued Oct. 21, 2016, by the Colombian Ministry of Mines and Energy, related to the mining classification noted herein.

Auxico intends to commence a comprehensive and systematic planning phase to initiate operations on the Minastyc property, given the presence of critical minerals, including coltan, rare earth elements and tin, along with precious metals. With previously announced test results on samples from pits located on and adjacent to the Minastyc property indicating 33.75 to 62.13 per cent tin oxide content (refer to news release dated June 24, 2021), and following the recent environmental licence approval, the company will focus on further developing tin concentrate operations in Colombia with material sourced from its own property. This development provides the company with greater material sourcing independence, as a producer, and the ability to swiftly execute on already established offtake agreements such as the previously announced tin concentrate sales agreement with Cuex Metal AG (refer to news release dated Aug. 22, 2022).

The temporary environmental licence issued to Auxico has a validity of two years, pending the approval of a global environmental licence, that will be valid for the lifespan of the project. Following the issuance of the environmental licence for small-scale open-pit mining from the Colombian environmental authority, all conditions precedent have been met in order to commence the title transfer of the Minastyc property to Auxico (refer to news release dated May 16, 2022), making it a wholly owned asset of the company.

Qualified person

Ricardo Sierra, BSc of science, a member of the Australian Institute of Mining and Metallurgy (MAusIMM No. 3078246), is a qualified person (QP) as defined by National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release and in relation to the Minastyc project in Vichada, Colombia. Mr. Sierra is an independent technical consultant to Auxico Resources Canada.

About Auxico Resources Canada Inc.

Auxico Resources Canada is a Canadian company that was founded in 2014 and based in Montreal, trading on the Canadian Securities Exchange (CSE) under symbol AUAG and on the OTCQB market under symbol AUXIF. Auxico is engaged in the acquisition, exploration and development of mineral properties in Colombia, Brazil, Mexico and the Democratic Republic of the Congo.

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