Mr. David Kratochvil reports

BQE WATER'S PROJECT UPDATE RELATED TO EAGLE GOLD MINE WATER TREATMENT SERVICE

BQE Water Inc. has provided an update on the Eagle gold mine project.

Following the heap leach failure at the mine in 2024, BQE Water designed, implemented and operated an emergency water treatment plant, and has discharged over one million cubic metres of clean water safely into the environment, under contract with PricewaterhouseCoopers Inc. in its capacity as court-appointed receiver of Victoria Gold Corp. With the remaining inventory of contaminated water on site greatly reduced by BQE Water this year and with adequate storage now available, active operations and discharge into the environment are expected to cease in November, 2025, and a winterization plan developed by BQE Water is expected to be complete prior to demobilization from site by Dec. 15, 2025.

In further development, BQE Water submitted a proposal in response to the tender for the design and implementation of a long-term water treatment solution at Eagle mine and was later selected by the receiver to carry out the first phase of engineering with a contract entered on Nov. 4, 2025. It is anticipated that the first phase will complete by the middle of first quarter 2026. Due to the complexity of water composition and to support all possible project scenarios, the long-term treatment plant will combine multiple new processes. One of these is a process for the removal of cobalt-cyanide complexes to trace levels using ion exchange. The process was developed and pilot tested by BQE Water at Eagle mine during the 2025 operation season. The long-term treatment design also includes the use of BQE Water's direct electroreduction of selenium to be deployed if/when required.

A key aspect of the new design is a smooth, expedient and cost-effective transition from BQE Water's emergency treatment process to the new permanent system starting with the anticipated restart of water treatment prior to 2026 spring freshet and a gradual expansion of treatment adding new treatment stages for cobalt-cyanide, nitrogen species and selenium if required.

David Kratochvil, the president and chief executive officer of BQE Water, stated: "Expedient implementation of emergency treatment and safe discharge of over one million cubic metres of clean water from Eagle into the environment is one of the success stories of the project. We are also very pleased that our proposal for long-term treatment was selected to provide definitive costs for implementation of the permanent long-term treatment at Eagle, supporting both further stabilization and remediation work at site. BQE Water's seasoned operations team, which integrates operators from a Na-Cho Nyak Dun-owned business, will be ready to restart clean water production in the spring of 2026."

About BQE Water's work at Eagle gold mine since September, 2024

BQE Water was contracted by the receiver as water treatment consultants and operations specialists to assist with the emergency response at the Eagle gold mine situated on the traditional territory of the First Nation Na-Cho Nyak Dun in central Yukon, which experienced a failure in its cyanide heap leach facility. As a result of the failure and the pre-existing water treatment plant being unable to treat cyanide leach solution to produce non-toxic effluent, an emergency solution had to be developed and implemented quickly. Working collaboratively with the technical advisers to the Yukon government, the FNNND, the receiver and past Victoria Gold employees, the BQE Water team developed and implemented a treatment process combining existing plant equipment with off-the-shelf rental equipment and newly constructed ponds. Engineering design, lab testing, procurement, operations and toxicological data analysis had to be carried out simultaneously to ensure safe and timely discharge of treated water into the environment.

About BQE Water Inc.

BQE Water is a service provider specializing in water treatment and management for metal mining, smelting and refining. It is helping to transform the way the industry thinks about water in the context of natural resource projects by offering services and expertise, which enable more sustainable water management practices and improved overall project performance at reduced risks. BQE Water invests in innovation and has developed unique intellectual property through the commercialization of several new technologies at mine sites around the world for organizations including Glencore, Jiangxi Copper, Freeport-McMoRan and the U.S. Environmental Protection Agency. BQE Water is headquartered in Vancouver, Canada, and trades on the TSX Venture Exchange under the symbol BQE.

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