Mr. Maria Conejo reports

BRASNOVA ENERGY MATERIALS INC. ANNOUNCES ASSIGNMENT OF OPTION ON CUATRO HERMANOS PROJECT

Brasnova Energy Materials Inc. has executed a binding agreement assigning the original underlying option agreement over the Cuatro Hermanos project (the 4H project), dated Jan. 16, 2023. Under the terms, 4H Copper Holding SAS (4HCH) agrees to provide all future development financing for the 4H project and to finance the underlying obligations including an immediate payment of the outstanding obligations under the original option agreement. Brasnova is currently in default under the terms of the original option agreement with the vendors of the 4H project. The assignment agreement sets forth the terms and conditions of the assignment of the original option agreement, as follows:

1. 4HCH will make immediate direct payment on the current outstanding obligations due under the original option agreement ($200,000 (U.S.)) within 10 days of the execution date of the assignment agreement.
2. 4HCH will advance $2.0-million (U.S.) in cash payments to BEM within 24 months of the execution date of the assignment agreement, as per the following schedule:
   1. A minimum of $200,000 (U.S.) in cash payments, will be due within 90 days of the execution date of the assignment agreement;
   2. A cumulative minimum of $1-million (U.S.) in cash payments, will be due within 12 months of the execution date of the assignment agreement;
   3. A cumulative minimum of $2-million (U.S.) in cash payments, will be due within 24 months of the execution date of the assignment agreement.
3. 4HCH will provide all future development financing for the 4H project and finance the underlying obligations of the original option agreement, including all accrued amounts and all payments due before Jan. 31, 2026.
4. 4HCH will terminate and revert back to BEM its 100-per-cent equity interest in the 4H project, if it fails to advance the payment for the current outstanding obligations due under the original option agreement or the $2.0-million (U.S.) in cash payments to BEM within 24 months or fails to fund the underlying obligations of the original option agreement after the execution date of the assignment agreement.
5. BEM will initiate the assignment of a 100-per-cent equity interest in the 4H project to 4HCH immediately upon payment of the current outstanding obligations due under the original option agreement.
6. BEM will retain a 1-per-cent net smelter royalty on all future production from the 4H project and any other concessions which may be added to the 4H project within 10 kilometres of the centre point of the current concessions.

The approximately $2.75-million in cash payments over twenty-four months from this 4H project assignment transaction will be primarily used by the company to pay down current loan obligations which as of Sept. 30, 2025, totalled $1,606,369.

Further, Brasnova is pleased to welcome back Edward Low as chief financial officer. The company would like to thank Nancy Zhao for filling this role over the past year. Brasnova will issue Mr. Low 250,000 common share options at a price of 15 cents with a term of five years, subject to approval of the stock option plan at the next AGM. The management changes and options issuance are subject to TSXV Venture Exchange approval.

About Brasnova Energy Materials Inc.

Brasnova Energy Materials is focused on securing, developing, and monetizing Brazilian critical materials assets and related materials technologies, to build shareholder value.

We seek Safe Harbor.