Ms. Maria Conejo reports

BRASNOVA ENERGY MATERIALS INC. ANNOUNCES OPTION OF BRAZILIAN GOLD PROJECT

Brasnova Energy Materials Inc. has executed a binding agreement with Bahia Graphite Corp. (BGC), dated Jan. 16, 2025, to acquire, subject to the terms and conditions of the option agreement, a 50-per-cent interest in the BGC gold project though earned equity ownership in the Brazilian gold subsidiary of BGC.

The BGC gold project is hosted in the same gold district as both Pan American Silver's Jacobina gold mining complex and Equinox Gold's Santa Luz Bahia complex, and spans 3,935.25 hectares.

Under the terms, BGC hereby grants to Brasnova Energy the option for Brasnova Energy to acquire an undivided, unencumbered legal and beneficial 50-per-cent interest in and to the BGC gold project by advancing to BGC, over a period of 24 months from the execution date of the option agreement, $500,000 to cover all work expenditures and the holding fees due on the BGC gold project.

Upon Brasnova Energy having exercised the option, BGC will transfer to BEM the percentage right, title and interest in and to the property associated with the option by transferring 50-per-cent equity ownership of Bahia Gold Corp. to Brasnova Energy.

The company will focus on work programs over the first half of 2026 on the 100-per-cent-owned Jucurutu iron oxide copper gold (IOCG) project in the state of Rio Grande do Norte, Brazil, and the BGC gold project in the state of Bahia.

Brasnova Energy is also pleased to announce a non-brokered private placement financing for aggregate gross proceeds of up to $750,000. The financing will consist of up to 7.5 million units at 10 cents, each unit consisting of one common share of the company and one common share purchase warrant, with each warrant being exercisable for an additional common share at an exercise price of 20 cents for 24 months. The warrants will be subject to the right of the company to accelerate the exercise of the warrants if the shares of the company trade at or above 50 cents for a period of 10 consecutive trading days. Finders' fees in accordance with TSX Venture Exchange policies may apply to the financing. Proceeds raised from the financing will be used for the project payments and acquisitions, exploration and development, and working capital expenditures.

Brasnova Energy announces that it has cancelled its previously announced (see the company's Aug. 6, 2025, news release) 20-cent private placement financing.

About Brasnova Energy Materials Inc.

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

We seek Safe Harbor.