Mr. Mark Billings reports

AUXICO ANNOUNCES SAMPLING RESULTS FROM A GEOLOGICAL REPORT ON THE MINASTYC PROPERTY

Auxico Resources Canada Inc. has released results from a sampling program previously conducted on the Minastyc property, located in Puerto Carreno, Vichada, Colombia. The amended report will be available on the company's website and accessible on SEDAR+.

Minastyc is a 100-per-cent-company-controlled critical-mineral-rich project which intends to be the subject of a near-term small-scale production program. The company is pleased to announce the results from a campaign conducted on the Minastyc property during 2021 by Joel Scodnick and Jocelyn Pelletier, both qualified persons. These samples were sent for the inductively coupled plasma-mass spectrometry analysis method whereby the related certificate of analyses was only recently received and therefore not reported earlier. The samples taken weighed between three kilograms and 12.209 kg, and the following results further demonstrate the pervasive nature of the mineralization within the TA area and Area 50, as well as outside of those areas.

Highlights of the 2021 sampling program results are as follows:

• The samples were taken from eight pits spanning a distance of approximately 1.8 kilometres from east to west. The samples were selected and channelled within the TA area and Area 50, and in December, 2021, new pits were established and sampled as well.
• All the results contain rare earth elements, as well as other critical minerals, therefore further demonstrating the potential of the Minastyc property as a strategic source of critical minerals that are key to the energy transition and a focal point of public policy. Only the results of some of the more valuable rare earth element findings are highlighted herein.

Area 50:

• A three-kilogram sample (No. S00357835A) yielded 139.6 grams per tonne niobium, 26.4 g/t gallium and 73.6 g/t rubidium (channel sample from surface to a depth of 1.0 metre).
• A 3.2-kilogram sample (No. S00357841A) yielded 34.4 g/t Nb, 165.6 g/t praseodymium, 14.4 g/t dysprosium, 22.7 g/t germanium, 1.022 kilograms per tonne cerium and 98.3 g/t samarium (channel sample from a depth of 1.2 metres to 3.0 metres).

TA area:

• A total of 11.6 kg (average) from samples No. S00357846 to No. S00357850 included returned grades of 18.1 to 36.5 g/t Ga and 11.9 to 24.9 g/t Rb (sample No. S00357846 to No. S00357849 channelled from surface to a depth of 3.5 metres, and sample No. S00357850 channelled from surface to a depth of 1.5 metres, just above No. S00357851).
• A 10.6-kilogram sample (No. S00357851) yielded 2.90 kg/t Nb, 1.63 kg/t tantalum, 36.6 g/t Ga and 23.9 g/t Rb (channel sample taken from a depth of 1.5 metres to 2.5 metres).
• From channel sampling across eight pits, it was observed that the clayish-rich conglomerate appears to be the most fertile unit carrying the most abundant tantalum-niobium-tin-rare-earth-element minerals and other critical minerals. Area 50 is richer in REEs, and Area 50 is richer in Ta-Nb. Mineralization starts at the surface and can be seen to extend at least a few metres to the bottom of the trenches. The larger sample size yielded better results than panned concentrates, demonstrating that a larger sample size is a more representative indication of the actual grade.
• A total of 361 pits were identified on the Minastyc property based on compiled data, and according to what was observed, mineralization and minerals of interest are hosted in gravel size fragments primarily found from surface to a depth of several metres. Other stratigraphic horizons that contain fine sands and clays also contain REE and critical minerals.
• Incorporating data from previous work conducted on the property, the highly prospective TA area and Area 50 lie approximately 1.6 kilometres apart, with both areas having returned various high grades in concentrates and samples weighing from three kg to 12 kg.
• The amended National Instrument 43-101 report indicates a representative 3.2-tonne bulk sample taken from two locations on the Area 50 pit. Acid bake testing of the bulk sample concentrate, sample No. S00357793, was done in March, 2022, at IGS Impact Global Solutions' laboratory. The results produced a total rare earth oxide concentrate totalling 49 per cent with recoveries averaging 89.74 per cent as provided in the attached table. In this same test, IGS was able to precipitate 94.38 per cent of the thorium and 92.34 per cent of the uranium, both radioactive elements. IGS is confident it can precipitate greater than 99 per cent of the thorium and 90 per cent to 95 per cent of the uranium. In conclusion, a straightforward production of rare earth bulk concentrate with only minor amounts of thorium and uranium was achieved at the lab-scale level using scalable and conventional processing technology of acid bake, water leach and precipitation steps. This is important because to transport the concentrates to North American or European refineries, the radioactive content must be less than 100 parts per million, which appears to be achievable.

Mark Billings, chairman of Auxico, commented: "The 30-sample campaign on eight of the pits further demonstrates the vast potential of the Minastyc property, with highly anomalous values being reported for gallium and rubidium, therefore enhancing the prospective nature of the project. The metallogeny report describes in some detail the mineral formation (genesis and regional distribution of mineral deposits) of this type of alluvial deposit, further validating the economic potential and concepts of operation. Auxico has compiled a vast amount of sampling data which not only validates the prospective nature of the property but also allows management and our technical team to develop an accurate plan with key targets as we move towards a stage of production."

Qualified person

Ricardo Sierra, BSc, a member of the Australian Institute of Mining and Metallurgy (MAusIMM 3078246), is a qualified person as defined by National Instrument 43-101, and has reviewed and approved the 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.

Disclaimer: The qualified person does not take any responsibility for the values presented in this press release taken in 2019 by Miguel Jaramillo and in 2021 by Joel Scodnick and Jocelyn Pelletier, the last two qualified persons. These values are being referred to for general information purposes only and to demonstrate the potential the property holds, which can only be established following due diligence by Auxico's qualified person.

About Auxico Resources Canada Inc.

Auxico is a Canadian company that was founded in 2014 and is based in Montreal, trading on the Canadian Securities Exchange 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, Bolivia and the Democratic Republic of the Congo.

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