Mr. Terry Filbert reports

BARU ANNOUNCES AMENDMENT TO MATURED CONVERTIBLE LOAN AND ISSUANCE OF BONUS WARRANTS

Baru Gold Corp. has entered into a forbearance agreement with Mercer Street Global Opportunity Fund LLC, an arm's-length party to the company, subject to acceptance by the TSX Venture Exchange, in respect of the company's outstanding convertible loan originally issued on July 15, 2022, which matured two years from its date of issuance, and is no longer convertible into securities of the company.

Under the terms of the agreement, Mercer has agreed to forbear from enforcing repayment of the loan and from exercising its security rights until July 17, 2027. At the forbearance date, all outstanding amounts under the loan will become due and payable in full.

In consideration of the forbearance and subject to exchange approval, the company will issue to Mercer 6,528,879 non-transferable bonus warrants, each exercisable into one common share of the company at an exercise price of 6.75 Canadian cents (4.89 U.S. cents) for a term expiring July 15, 2027. The warrants are subject to pro rata reduction in accordance with Policy 5.1 of the exchange.

The outstanding loan value is $816,110 (Canadian) ($591,384 (U.S.)). The warrants are calculated based on a portion of the outstanding loan amount of $440,699 (Canadian) ($319,347 (U.S.)). In addition, upon issuance of the warrants, the interest rate of the loan will be reduced from 18.0 per cent per annum to 16.67 per cent per annum, subject to reinstatement of the penalty rate in the event the loan remains outstanding after the forbearance date.

Further, the loan shall be rendered unsecured against the company's equity interest in its wholly owned subsidiary, Sangihe Gold Corp., which holds, through a wholly owned Indonesian subsidiary, the company's interests in the Sangihe gold project. The loan will remain unsecured following the forbearance date. There are no finders' fees payable. Completion of the transaction remains subject to final acceptance of the exchange.

About Sangihe gold project

The Sangihe gold project is located on the Indonesian island of Sangihe, off the northern coast of Sulawesi with a gold-bearing area of approximately 25,000 hectares. Sangihe has an existing National Instrument 43-101 report suitable for mining planning and production schedules for an area within the 65-hectare area targeted for initial production. Within the area targeted for initial production, the National Instrument 43-101 report estimates over 200,000 ounces of gold resource (inferred: 91,000 and indicated: 114,000), and over three million oz of silver resource (inferred: 1.08 million and indicated: 1.93 million) as reported in the company's "Independent Technical Report on the Updated Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia" (Mining Associates Pty. Ltd., Feb. 1, 2025). Only 10 per cent of the gold-bearing area has been explored.

Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. The company intends to proceed to production without the benefit of first establishing mineral reserves supported by a feasibility study. The company cautions readers that the any production decision made by the company will not be based on a National Instrument 43-101 feasibility study of mineral reserves that demonstrates economic and technical viability, and, as such, there may be involved increased uncertainty and various technological and economic risks.

The company's 70-per-cent interest in the Sangihe-mineral-tenement contract of work is held through Pt Tambang Mas Sangihe. The remaining 30-per-cent interest in TMS is held by other Indonesian corporations. The term of the Sangihe CoW agreement is 30 years upon commencement of the production phase of the project. Baru has met all the requirements of the Indonesian government and has been granted its environmental permit.

About Baru Gold Corp.

Baru Gold is a dynamic junior gold developer with NI 43-101 gold resources in Indonesia, one of the top-10 gold producing countries in the world. Based in Indonesia and North America, Baru's team boasts extensive experience in starting and operating small-scale gold assets.

We seek Safe Harbor.