Mr. Mark Haywood reports

EDM ANNOUNCES POSITIVE PROGRESS TOWARD FAA APPLICATION FOR THE SCOTIA MINE RESTART

EDM Resources Inc. has made significant progress on the required approvals and permitting that is necessary for the restart of the Scotia mine:

• Advancement of Department of Fisheries and Oceans (DFO) requests for granting of the Fisheries Act Authorization (FAA), which is required for operationalizing the Scotia mine;
• Completion of two of four seasons of sampling for Atlantic salmon DNA as required by DFO, with results yielding no Atlantic salmon DNA;
• Completion of primary hydrogeological and surface water studies to understand potential groundwater impact as required by the DFO;
• Completion of reconnaissance work to identify potential locations for stream and/or river restoration required by the DFO for the fish habitat offsetting plan.

"We are pleased to report the results of summer and fall seasons of testing for Atlantic salmon DNA yielded no detection of Atlantic salmon in or nearby the Scotia mine. Given this testing occurred during salmon spawning season, where salmon come into fresh water, we are confident that the remaining two seasons of testing will also yield favourable results as spawning season is when they are typically detectable, if present," said Mark Haywood, president and chief executive officer. "Working with our consultants, we have also made significant progress on satisfying the DFO's requests through primary hydrogeological and surface water studies on groundwater and reconnaissance work on the offsetting plan to replace any fish habitat that may be impacted through our operations. Once these three key work streams are completed, we will be in a position to submit our FFA application the DFO," he added.

Fisheries Act authorization

As previously announced on Aug. 18, 2023, the company was advised that the DFO required additional information in connection with the FFA application, including a more expanded and in-depth application than previously necessary. The granting of the FFA by the DFO is the final permitting approval required to commence mining operations at the Scotia mine.

The DFO's primary objective is to ensure the project has developed a comprehensive fisheries offsetting plan that demonstrates mitigation and offsetting of any potential impacts on fish and fish habitat within the project area. EDM has diligently collaborated with third party consultants to assess various options for fish offsetting. The company's primary focus has been on in-stream habitat restoration and enhancement projects, with a focus on:

1. Demonstrating the absence of Atlantic salmon within the Gays River through eDNA (environmental DNA) testing;
2. Studying the impact of surface and groundwater of the future operation on the impact of the nearby Gays River;
3. Creating an offsetting plan to replace any fish habitat that may be impacted through the company's operations.

Atlantic salmon testing

EDM has been working with McCallum Environmental and GHD to conduct a comprehensive four-season ecological study to demonstrate to the DFO that the nearby Gays River does not contain Atlantic salmon and the project's mining activities will not interfere with the Inner Bay Of Fundy (IBOF) Atlantic salmon habitat.

The company has completed two seasons (summer and fall of 2023) of eDNA testing and the results to date have yielded no Atlantic salmon DNA present. EDM is continuing with the remaining two seasons of testing, which is expected to be completed by May, 2024.

Groundwater studies and fish habitat offsetting plan

As part of the FFA application process, the DFO has requested that EDM study any potential relationship with the project's SW and Main pits and the Gays River and outline mitigation techniques the project will employ to mitigate any potential impact. EDM has completed primary hydrogeological and surface water studies showing the zone of influence of the project's open pit. The company is now working to complete the assessment through a secondary hydrogeological study of the particular potential impacts and mitigation techniques to satisfy the DFO.

The DFO also requires an offsetting plan to be submitted with the FAA application to offset any harmful impacts that may occur to fish habitat. EDM's consultant, McCallum Environmental, has completed reconnaissance work to identify potential nearby areas in Nova Scotia where stream and/or river restoration could occur for the offsetting plan. Once the extent of the potential impact to any fish habitats has been quantified, McCallum Environmental will determine the amount of offsetting that will be required to satisfy the FFA application.

About EDM Resources Inc.

EDM is a Canadian exploration and mining company that has full ownership of the Scotia mine and related facilities near Halifax, N.S. Through its wholly owned subsidiary, EDM also holds several prospective exploration licences near its Scotia mine and in the surrounding regions of Nova Scotia.

The company's common shares are traded on the TSX Venture Exchange under the symbol EDM.

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