Mr. Hector Gonzalez reports

CANDELARIA ANNOUNCES RESOLUTION OF LOAN FACILITY ENFORCEMENT

Candelaria Mining Corp. has reached an agreement with Goldgroup Mining Inc. to fully resolve the enforcement proceedings related to the previously announced default under the medium-term loan facility originally provided by Accendo Banco SA, Institucion de Banca Multiple, and subsequently transferred to Goldgroup.

Under the terms of the agreement, signed on March 7, 2025, Candelaria will transfer 780,571,140 shares, which represent all of the issued and outstanding shares of its subsidiary, Minera Apolo SA de CV, to Goldgroup. The deemed value of these shares is 78,057,114 Mexican pesos. This transfer constitutes full and final satisfaction of the loan facility.

In addition, Goldgroup has agreed to provide additional consideration to Candelaria, including cash payments and the issuance of common shares, as follows:

• A cash payment of $89,000 (U.S.) within five days of receipt of all necessary approvals from the TSX Venture Exchange required by Goldgroup and Candelaria to complete the transaction;
• A cash payment of $89,000 (U.S.) on the later of: (i) the delivery of the Apolo shares to Goldgroup; or (ii) six months after receipt of the TSX-V approvals, provided that the Apolo shares have been delivered to Goldgroup by such date;
• Issue 716,667 common shares of Goldgroup at a price of 30 cents per share to Candelaria.

Upon completion of the transaction, all claims against Candelaria related to the loan facility will be released.

Hector Gonzalez, chief executive officer of Candelaria, commented, "This resolution allows Candelaria to strengthen its financial position and focus on future strategic opportunities while eliminating the financial obligations associated with the medium-term loan facility with Goldgroup."

The agreement is subject to approval by the TSX Venture Exchange.

We seek Safe Harbor.