Mr. Pierre Gauthier reports

AUXICO ANNOUNCES ACQUISITION OF 7 MILLION SHARES BY JOINT VENTURE PARTNER CENTRAL AMERICA NICKEL

Central America Nickel Inc. has made a meaningful acquisition of seven million common shares and three million warrants in the capital of Auxico Resources Canada Inc.; the warrants have a strike price of 15 cents for a period of three years. CAN is a Canadian-based mining and technology firm with common directors and management as Auxico, and has acquired these shares as a long-term investor due to the strategic importance and substantial quantity of rare earth and other critical minerals contained in both of Auxico's highly-prospective Colombian and Brazilian projects. Inclusive of this transaction, CAN now holds 7,550,000 shares and 4,275,000 warrants in Auxico.

Pierre Gauthier, President and CEO of Auxico, retains a meaningful stake with over 5 million shares of the Company, validating that management is very much aligned with shareholders. As part of this holding, Pierre Gauthier had previously acquired 2 million common shares of Auxico at a price of CAD $0.50 per share as of December 28, 2022, from CAN, which was disclosed and filed accordingly on SEDI (www.sedi.ca).

Early Warning

This press release is issued pursuant to National Instrument 62-104 - Take-Over Bids and Issuer Bids and National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. As a result of this meaningful acquisition, CAN will hold 8.17% of the issued and outstanding common shares of Auxico. If all the warrants of CAN are exercised, CAN will own 12.23% of the issued and outstanding common shares of Auxico, on a partially diluted basis. The Acquisition was made for investment purposes.

In accordance with applicable securities laws, CAN may, from time to time and at any time, acquire additional shares and/or other equity, debt or other securities or instruments (collectively, "Securities") of Auxico in the open market or otherwise, and reserves the right to dispose of any or all of their Securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the Securities, the whole depending on market conditions, the business and prospects of Auxico and other relevant factors.

A report respecting this acquisition will be electronically filed with the Securities Commission in each jurisdiction where Auxico is reporting and will be available for viewing on SEDAR at www.sedar.com.

Other Announcements

The Company has filed, in joint venture with Central America Nickel Inc., an application to the Government of Canada's Innovation, Science and Economic Development's Strategic Innovation Fund (SIF), a proposal for the funding of two critical mineral and rare earth element processing and refining facilities intended for construction in the region of Sorel, Quebec. SIF's objective, as part of the announced Canadian Critical Minerals Strategy backed by nearly $4 billion in Budget 2022, is to spur innovation for a better Canada by providing funding for large projects and national innovation ecosystems, with an aim to accelerate investments in critical mineral projects. Canadian Innovation, Science and Industry Minister Francois - Philippe Champagne's office recently stated that the qualifying projects must focus on critical minerals processing, manufacturing and recycling, with a focus on mining projects that show exceptional innovation benefits and strong vertical integration to grow domestic value chains, and contribute to a more sustainable and competitive economy.

About Auxico Resources Canada Inc.

Auxico Resources Canada Inc. ("Auxico") is a Canadian company that was founded in 2014 and based in Montreal, trading on the Canadian Stock 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.

We seek Safe Harbor.