Mr. Pierre Gauthier reports

AUXICO SIGNS EXCLUSIVE OPERATING AGREEMENT AND RECEIVES MINING TITLE CERTIFICATE FOR MINASTYC PROJECT IN COLOMBIA

The Minastyc project, a property controlled by Auxico Resources Canada Inc., has received a mining registration certificate from the National Mining Agency (ANM or Agencia Nacional de Mineria) as it relates to the property mining title, which secures the company's rights to the exploration and exploitation of the property until 2040.

The company has furthermore executed an exclusive operating agreement and security interest contract for future production with the mining title holder, Climaco Unda; the execution of these agreements assures the company's rights to commence production during the mining title transfer period, allowing Auxico to advance an exploitation plan which includes mining key areas of the Minastyc property related to high-grade samples of tin collected during previous work programs. The security interest contract assigns to the company the rights to perform mining activities and enter into production on the Minastyc property, as well as collateralizes the obligation of Mr. Unda's assignment of the mining title to Auxico.

The Minastyc project mining title covers a total area of 188 hectares in Puerto Carreno, department of Vichada, Colombia, a prolific critical mineral property with sampled grades up to 62.13 per cent tin, among rare earth elements, tantalum, niobium and others. The company has started operational planning for small-scale mining production with the intention to achieve a volume of up to 300 tonnes per month, commencing with phase 1 (area of 18.4 hectares) production of tin concentrates from targeted high-grade sections of the property delineated through previous sampling programs.

Pierre Gauthier, president and chief executive officer of Auxico, comments: "We are very pleased to announce the successful conclusion of the mining title registration process and exclusive operating agreement for the Minastyc project; having received the right to exploit the property for the next two decades greatly reduces project risk. Miguel Jaramillo in a June, 2019, report suggests that economic mineralization can only be validated through bulk sampling, as samples collected in channel sampling are not of sufficient size to detect the presence of critical minerals that are typically associated with larger fractions. Previous work has determined that these larger particle-sized critical minerals can be concentrated by a simple screening process. Due to its critical mineral content, Minastyc is well suited for direct shipping of commercial concentrates. We believe that our investment in the future expansion of Minastyc's mining operations will benefit all stakeholders including our shareholder base, the nation of Colombia, the department of Vichada and the local community of Puerto Carreno."

Auxico previously announced the discovery of a high-grade tin-tantalum target area on the Minastyc property with titanium, niobium, scandium and hafnium credits that has been subject to pit sampling; for reference, please refer to the news release published by the company on June 24, 2021. Samples previously taken from the tin-tantalum target area were the result of pan concentration and screening, and were subsequently analyzed by Coalia Research Institute in Thetford Mines, Que. These samples indicated grades up to 62.13 per cent tin, 25.08 per cent tantalum, 15.50 per cent titanium and 8.15 per cent niobium, along other critical minerals such as rare earth elements and scandium. A third sampling campaign analyzed by Coalia Research Institute in 2021 likewise indicated concentrate grades up to 47.2 per cent tin, 9.49 per cent neodymium, 31.09 per cent cerium, 42.85 per cent titanium, 30.41 per cent tantalum and 25.44 per cent niobium. The goal of the company is to produce and export rare earth elements, transition metals and posttransition metals such as tin, in the form of concentrates, from its Minastyc property.

Registration details

The Minastyc project is a company-controlled property, registered under the title holder Mr. Unda, with total assignment of rights, licences and all related registrations to the concession legally assigned to Auxico, as filed under the ANM. As a result of the executed operator and security agreements, the current mining title holder, Mr. Unda, holds the obligation to transfer the mining title to the exclusive operator of the concession, Auxico, and in the meantime, the company retains the rights to carry out any mining activities at its discretion, including but not limited to the installation of the necessary infrastructure and mineral production.

The mining registration certificate (No. CRM-202308221848-479897), as it relates to the mining title (No. LFH-14431X), holds a validity period until Aug. 21, 2040, and provides Auxico with the rights to exploit the property and start mineral production. This approval follows the grant of a two-year environmental licence for small-scale open-pit mining received in June, 2023, the authorization of the company's work plan (PTO) by the ANM, as announced in May, 2022, and the approval of environmental impact assessment for the temporary environmental licence in April, 2023, from the regional autonomous corporation of the Orinoquia.

This is a significant development for Auxico given the recent legislative moves toward more responsible and sustainable mining practices in Colombia proposed by the ANM, which include ceasing the issuance of licences for open-pit mining as announced during August and September, 2023, requiring mining firms to get environmental licences for exploration in order to protect the environment, increased state control, and the prevention of conflict between communities and extractive companies. The issuance of the required licences and permits to date, and in a timely manner, is a testament to the company's efforts to maintain responsible operations within the state of Vichada. The approval of the global environmental licence for the Minastyc project is a subsequent step for the company; this licence will allow for a greater mineral production capacity from the property. The company has furthermore applied for an export licence.

Qualified person

Ricardo Sierra, BSc, a member of the Australian Institute of Mining and Metallurgy (MAusIMM 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. Mr. Sierra is an independent technical consultant to Auxico.

About 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 the symbol AUAG and on the OTCQB Market under the symbol AUXIF. Auxico is engaged in the acquisition, exploration and development of mineral properties in Colombia, Brazil, Mexico, Bolivia and the Democratic Republic of the Congo.

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