Mr. David Hodge reports

EAGLE BAY RESOURCES ANNOUNCES 2023 CAP & CARBO RARE EARTH ELEMENT (REE) PROJECT UPDATE & MARKETING AGREEMENT

Eagle Bay Resources Corp. has completed a compilation of the extensive historical exploration database of diamond drilling, geophysics, soil geochemistry and geological mapping of Eagle Bay's Cap and Carbo rare-earth element (REE) projects.

The Carbo property is contiguous to Defense Metals Corp. (TSX-V: DEFN) Wicheeda rare-earths property to the north and west. The Wicheeda property has an indicated resource of 5.0 million tonnes (Mt) at 2.95 per cent rare-earth oxide (REO) and inferred resource 29.5 million tonnes (Mt) at 1.83 per cent REO, and a positive preliminary economic assessment completed by Defense Metals in 2022. Further drilling has yet to be incorporated in a new resource model and Defense has commenced a phase II Hydrometallurgical pilot plant test as part of its preliminary feasibility study of the Wicheeda rare-earths deposit.

Since the Eagle Bay's listing on the Canadian Securities Exchange March 15, 2023, it has been focused on compiling the extensive data bases of previous operators in preparation for the 2023 summer exploration season. The Cap and Carbo projects saw extensive exploration during 2009 to 2011 which was successful in taking the early stage projects to first and second stage diamond drill programs.

The most significant results from the historical 2010 diamond drill hole (DDH) program were intercepted in hole CA-10-006 on the Carbo property. This hole returned three distinct intervals of 37.3 m of 1.43 per cent of REO, 6.6 m of 1.77 per cent REO and 11.6 m of 1.33 per cent REO. Approximately 750 m to the southwest of hole CA-10-006, Defense Metals intersected significant REE mineralization, including 89 m of 3.01 per cent REO in hole WI19-29, 130.8 m of 2.59 per cent REO within hole WI19-30, and 82.9 m of 5.47 per cent REO within hole WI19-31.

The company has reconfigured its Cap and Carbo properties for a more efficient exploration program to focus on the high-potential areas where previous drilling, surface work or airborne surveys have been conducted. The company's combined properties consist of 31 claims totalling 6,768.87 hectares.

At the Carbo claims, several outcrop occurrences identified by previous operators, including Teck Resources Ltd. have only been followed up by reconnaissance stage surface work and drilling. These occurrences will be re-evaluated.

A report by Campbell & Walker Geophysics Ltd. on previously flown magnetic, EM and radiometric survey of the Carbo property and immediate area was completed in April, 2019. Targets from that report will be examined in the field.

The company has updated its website to include these maps along with several other relevant figures prepared by Dahrouge Geological Consulting Inc.

The Cap and Carbo REE project is readily accessible by all-weather gravel roads and is near infrastructure, including hydro power transmission lines and gas pipelines. The nearby Canadian National Railway and major highways allow easy access to the port facilities at Prince Rupert, the closest major North American port to Asia.

Jody Dahrouge, director and president of Dahrouge Geology, comments: "We are very excited to follow up on the historical results obtained by past operators of the CAP and Carbo properties. The historical work has demonstrated clear potential for the extensive carbonatite outcroppings to host a large mineralized system that includes REE's and/or niobium."

Management cautions that past results or discoveries on adjacent properties (in example, Wicheeda) may not necessarily be indicative to the presence of mineralization on the company's properties (in example, Cap, Carbo).

Marketing agreement

In addition, Eagle Bay is pleased to announce it has signed an agreement with Zimtu Capital Corp. whereas Zimtu shall provide Eagle Bay Resources services under the ZimtuADVANTAGE program.

ZimtuADVANTAGE is a marketing service designed for public companies, providing opportunities and guidance to build their networks. The service offers a range of offerings such as live video conference presentations, comprehensive social media management, in-house content creation and influencer marketing. Additional features include the use of Rockstone Research to broaden client company awareness, dedicated monthly advertising campaigns for investor lead generation, interactive video conferencing sessions for Q&A (question and answer), and opportunities for direct investor engagement at trade shows and conferences across North America and Europe. All these services are tracked and reported weekly to ensure transparency and effectiveness.

Under the terms of the agreement, the company will pay Zimtu $12,500 (plus GST) per month for a period of 12 months amounting to an aggregate of $150,000 (plus GST) for the duration of the one-year term.

Additional information about the company can be found in the company's final non-offering prospectus dated Feb. 28, 2023, as filed under the company's profile on SEDAR.

Qualified person

Jody Dahrouge, BSc, PGeo of Dahrouge Geological Consulting, is a professional licensee with the Engineers & Geoscientists of British Columbia, and qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects and has reviewed the technical information in this news release. Mr. Dahrouge is a director of Eagle Bay.

About Eagle Bay Resources Corp.

Eagle Bay Resources is a Canadian exploration company specializing in the acquisition and development of high-potential rare-earth elements (REEs) and niobium properties, including the Cap and Carbo carbonatite complexes. The 100-per-cent-owned properties are located 85 kilometres northeast of Prince George, B.C., and comprise 31 mineral tenures covering 6,768.87 hectares. Eagle Bay Resources is publicly listed on the Canadian Stock Exchange (CSE) under trading symbol EBR.

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