Mr. Peter Hemstead reports

BLUESTONE ANNOUNCES APPROVAL OF ENVIRONMENTAL PERMIT AMENDMENT FOR CERRO BLANCO PROJECT

Guatemala's Ministry of Environment and Natural Resources (MARN) has approved the environmental permit amendment for Bluestone Resources Inc.'s Cerro Blanco gold project to change the mining method from the existing permitted underground development to surface mining development.

Peter Hemstead, president, chief executive officer and chair of the board, stated: "After dedicating over two years to obtaining the environmental permit amendment, we are pleased with the Ministry of Environment and Natural Resources' decision to approve the permit for the Cerro Blanco project as a surface mining operation. The design for Cerro Blanco reflects safe and responsible mining practices and sustainable socio-environmental management that can contribute significant economic growth, infrastructure, training and job opportunities to Guatemala. We will continue with our strategic review, and having the environmental permit in hand helps derisk the project."

The Ministry of Energy and Mines (MEM) has also updated, by way of resolution, the project's approved mining licence to reflect the environmental permit amendment and the change to the surface mining method.

Environmental permit amendment

In the first quarter of 2021, Bluestone made a strategic decision to pivot development scenarios that significantly improved the economics, safe operation and production profile of the project. The company released a preliminary economic assessment and subsequently a feasibility study on Cerro Blanco that outlined a surface mining development scenario.

The company completed the environmental permit amendment application for the change in mining method and submitted it for review to governmental authorities in November, 2021. The amendment application is a comprehensive document that covers all aspects of the project in detail, building on the historical data and the previously approved 2007 environmental permit, to incorporate the new mining method. While aspects of the project layout increased in size, fundamental design characteristics remain unchanged, including the processing plant, dry stack tailings, water management, infrastructure and facilities.

Strategic review

The company believes that the environmental permit amendment for surface mining, approved by MARN on Jan. 9, 2024, will broaden the company's opportunities to provide value to shareholders. The strategic review continues and was initiated to explore and evaluate potential strategic alternatives to further advance Cerro Blanco and the Mita geothermal project. These alternatives could include, among other things, the sale of part or all of the assets of the company, a sale of the company, a merger or other business combination with another party, or other strategic transaction.

About Bluestone Resources Inc.

Bluestone Resources is a Canadian-based precious metal exploration and development company focused on opportunities in Guatemala. The company's flagship asset is the Cerro Blanco gold project, a near-surface mine development project located in southern Guatemala in the department of Jutiapa. The company released the results of a feasibility study for the project, outlining an asset capable of producing over 300,000 ounces per year at head grades of more than 2.0 grams per tonne gold. The project will produce 2.6 million ounces of gold over the life of mine at an all-in sustaining cost of $629 (U.S.) per ounce (as defined per World Gold Council guidelines, less corporate general and administration costs) over an initial 14-year mine life. The company trades under the symbol BSR on the TSX Venture Exchange and BBSRF on the OTCQB.

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