Mr. James Tworek reports

ELEMENT79 GOLD CORP PROVIDES 2023 SUMMARY AND CORPORATE UPDATE WITH FOCUS ON BRINGING LUCERO TOWARDS PRODUCTION IN 2024

Element79 Gold Corp. has provided the following summary of activities and accomplishments in 2023, as well as provided an update on the company's focus through 2024.

Since its initial public offering (IPO), Element79 Gold has been on an aggressive M&A (merger and acquisition) path, acquiring key assets, including the Nevada portfolio and the Lucero gold-silver project, which is now the company's primary focus. Element79's business model going forward aims for a quick, clear path toward beginning production of gold and silver in the near term.

2023 year in review

This year, Element79 transitioned from a project incubator to a production focus on its high-grade Lucero project. As Element79 pivoted business models, the M&A newsreel was constant as the company completed multiple value-driving divestitures:

• Lucero: Element79 expanded the property in June, 2023, received exploration permits in September, 2023, and continued to focus its efforts on its high-grade flagship project.
• Machacala transaction cancellation: In March, 2023, Element79 halted the Machala deal to refocus better and conserve funds. The return of shares involved with the deal is anticipated before end of 2023.
• Centra sale: Element79 sold two projects to Centra for $1-million in stock in May, 2023. Centra is completing its National Instrument 43-101 on the Long Peak property and commencing final filings for its own IPO. Once Element79 receives these shares and are freely trading, they will be strategically managed for corporate growth and investment into operational budgets.
• Valdo sale: Element79 is also selling three projects to Valdo Minerals for $1.25-million in stock, through a deal announced in November, 2022, and extended in May, 2023. Valdo has a similar business trajectory as Centra, with the timeline staggered by approximately nine months, and the company will strategically manage these shares in a similar fashion as those from Centra.
• Dale spinout: In July, 2023, Element79 transferred the Dale property to Synergy Metals Corp. A special shareholders meeting is set for Dec. 11, 2023 (record date for notice of meeting, record date for voting and beneficial ownership determination date, Nov. 6, 2023). Further progress updates and timing estimates for completion on the plan of arrangement spinout will be announced following the meeting.
• Snowbird project: Element79 is currently under negotiations with Plutus for future project advancements.
• Maverick Springs: The sale option was initially contracted on Aug. 31, with an extension announced on Oct. 23. The counterparty continues to complete steps required relative to its own listing process.
• Battle Mountain properties: Lower-potential and earlier-stage properties were dropped in September, 2023, to further focus the company's investments and work efforts.

Element79's core focus: Lucero gold-silver project

Element79 acquired Lucero, formerly known as the Shila mine, on June 28, 2022. This is a major development for the company, because Shila was last operational in 2005, producing over 40,000 ounces (oz) of gold equivalent (AuEq) every year at an impressive grade of 19.0 grams per tonne (g/t) AuEq.

The current permitting secured allows the company to extract up to 350 tons of ore per day. Element79 has also fostered good relations with the local community, signing a social contract in September, 2023. Historical data outline 74 high-grade veins at surface, 19 of which have been historically explored, and all past production has come out of just seven veins. In addition to the active production and potential for production increases, there also exists a potential for bulk-tonnage high-sulphidation gold as well as deeper copper-gold porphyry-style mineralization.

What makes Lucero such an attractive target?

There is a common saying in the mining world, "The best place to find a mine is where there used to be one." This mine was owned and operated by Minas Buenaventura S.A. from 1989 to 2005 and historical data indicate the mine had impressive metrics with recoveries of 94.5 per cent and 85.5 per cent for gold and silver, respectively. During the last five to six years before the mine was closed (due to economic concerns, which Element79 has gathered through research and conversation that the market price of gold dipped below the cost of production), Lucero's average annual production stood at an impressive 150 tons per day with a grade of 19 g/t AuEq, yielding 40,000 to 50,000 oz AuEq per year. This is a very attractive prospect to put back into production today, where $1,800-plus gold (and having broken past $2,000 recently) drives Element79's vision of bringing production back on line in the near term.

Lucero: current status

The community of Chachas, Castilla province, Arequipa region, has approved the issuance of a permit to Minas Lucero del Sur S.A.C., Element79's wholly owned subsidiary, to conduct superficial mining exploration activities, including geological mapping and selective sampling, for a duration of four months, commencing from Sept. 1, 2023, through Dec. 31, 2023. Monthly work plans are under way and Element79 is recreating the lost historical data sets of both above-ground and underground mapping, sampling and trenching. This activity will create the data required to generate drill targets and provide much of the information toward PEA/PFS (preliminary economic assessment/prefeasibility study) in 2024.

Community involvement

The company's management team and contractors were present in the community of Chachas, Peru, from Oct. 6 to Oct. 8, for meetings and a formal donation ceremony of 3,000 metres of eight-inch piping was delivered to the community. This initiative underscores the company's commitment to nurturing positive relationships with local communities while upholding the highest standards of environmental and ethical responsibility in its exploration endeavours.

A second similar donation, a delivery of piping, is being planned for the end of the year, with delivery to occur in December, 2023. Further updates on this activity will be provided in due course.

Ore Discovery LLC, with a local branch of its operations in Lima, has been engaged as the company's core geological service contractor to carry out the geological mapping and sampling works on site.

Optimism through current artisanal mining behaviour

There has been a burgeoning growth in production from the local artisanal miners at Lucero: Only a year ago, reports told Element79 that local artisanal miners were producing at a rate of nine to 10 tons per week. Fast forward to today, based on Element79's recent observations from its October, 2023, trip, that number has soared to an estimated 90 to 100 tons per week.

Element79's work program in March, 2023, yielded significant high-grade samples, which reinforces why they are actively working here, at growing rates. Element79 believes this reinforces the viability of bringing larger-scale production on line. Element79's management team has created plans for a bulk sampling program to further prove the economic viability of mining the existing veins in 2024 and is in discussions with several regional mills for the potential of process this bulk sample with the additional goal of fostering future toll milling partnerships to bring these high-grade ore to market.

Future plans at Lucero

The Element79 team has a clear vision for the future. The company's short-term goal starting in 2024 involves bulk sampling and sales to local mills to gain additional knowledge of the deposit as well as generate revenue. Element79 is also discussing a letter of intent for tolling ores at a local full-circuit mill, which currently has additional capacity on top of its day-to-day inflows from other sources.

Further, Element79 acquired Lucero del Sur 28 in June, 2023, enhancing its portfolio in Peru. The acquisition boosted Element79's position by 1,200 hectares at Lucero del Sur 28, which is located strategically just east of the high-grade Lucero gold-silver project. Today, additional upcoming strategic asset acquisitions are being actively negotiated.

Looking ahead

Element79 is thrilled to share that its strategic road map for the coming year is robust and filled with promising opportunities. First on the agenda is an advanced drilling program at Lucero based on the data gathered in the 2023 program. Drilling will be set to commence after the rainy season, around March to April, 2024.

Element79's intent to drill out the existing veins goes beyond merely verifying a resource. Given that Lucero is a past-producing mine and the local artisanal miners are working there today, Element79 is confident that economic resources can be outlined there are resources present and available for extraction. As designed by the vice-president of exploration, Kim Kirkland, it is Element79's intention that this drill program will also support a preliminary economic assessment, enabling the company to eventually move into prefeasibility studies. These are important, confidence-building steps in the trajectory towards sustainable production.

This focused approach enables Element79 to leverage its team strengths, cultivate lasting community relationships, and, most crucially, amplify mutual benefits and profitability for all stakeholders involved.

Element79 is also reviewing multiple ways to bring production and cash flow generation in the near term: through working with the local community and the local artisanal miners; through designing its bulk sampling program and sourcing offtake agreements with local and national-level mills; and through developing its own plans for eventually building a mill on site. Element79 is excited to provide updates on this as developments unfold.

As Element79 looks toward the future, its confidence in its growth prospects and operational excellence has never been stronger. Element79 is committed to executing its strategy with precision, all while upholding the highest standards of environmental and ethical responsibility.

Thank you for your continued support and stay tuned for what promises to be an exciting and transformative journey ahead!

James C. Tworek

Chief executive officer and director

Qualified person

The technical information in this news release has been reviewed and verified by Neil Pettigrew, MSc, PGeo, director of Element79 and a qualified person as defined by National Instrument 43-101.

About Element79 Gold Corp.

Element79 Gold is a mining company focused on gold and silver committed to maximizing shareholder value through responsible mining practices and sustainable development of its projects. Element79 Gold's focus is on developing its past-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to restart production in the near term.

The company also holds a portfolio of five properties along the Battle Mountain trend in Nevada, with the Clover and West Whistler projects believed to have significant potential for near-term resource development. Three properties in the Battle Mountain portfolio are under contract for sale to Valdo Minerals Ltd., with an anticipated closing date around the end of 2023. The company has also signed an option agreement to sell the Maverick Springs project, an advanced-stage exploratory property with an inferred resource of 3.71 million oz AuEq (1.37 million oz gold (Au) and 175 million oz silver (Ag)) and anticipates completing this sale on or before March 28, 2024.

In British Columbia, Element79 Gold has executed a letter of intent and financed a drilling program to acquire a private company that holds the option to a 100-per-cent interest of the Snowbird high-grade gold project, which consists of 10 mineral claims located in central British Columbia, approximately 20 kilometres west of Fort St. James.

The company has an option to acquire a 100-per-cent interest in the Dale property, 90 unpatented mining claims located approximately 100 kilometres southwest of Timmins, Ont., and has recently announced that it has transferred this project to its wholly owned subsidiary, Synergy Metals Corp., and is advancing through the plan of arrangement spinout process through the rest of 2023.

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