Mr. James Tworek reports

ELEMENT79 GOLD: ONGOING COMMITMENT TO COMMUNITY EMPOWERMENT

Element79 Gold Corp. has provided further insight into its environmental, social and governance (ESG) efforts, including continuing social initiatives with the Chachas community local to the Lucero mine.

Chachas community engagement

Element79 remains steadfast in its commitment to sustainable and responsible mining practices, recognizing the pivotal role of community engagement in project success. In line with this commitment, Element79 has partnered with UMA, a prominent Peruvian non-governmental organization (NGO) based in Lima. UMA helps communities across Peru develop through a focus on environmental education, with a drive to understand social and economic scenarios of developing communities to help create solutions to their unique social-environmental challenges.

Together, Element79 and UMA aim to develop a comprehensive education program that will create a baseline of knowledge and perception of the mining industry as well as social, environmental and economical topics tailored for the Chachas community and surrounding areas.

The social evaluation model, led by UMA, encompasses diagnostic assessment, data evaluation, and the design of a social education plan focused on educating about the mining industry and sustainability. The diagnostic assessment will measure the community's perception and knowledge of various facets, including the mining industry, environmental concerns, social dynamics and economic themes. The curriculum, based on local socioeconomic themes and topics garnered from the community diagnostic assessment, will be delivered through classroom sessions using dynamic books for three age groups that UMA is developing, with the education process providing pragmatic solutions and inspiration to students.

The subsequent data evaluation phase will delve into the following:

• The community's comprehension and perception of the mining industry;
• Their understanding of social hierarchies and needs;
• The awareness and priority associated with environmental issues;
• Their familiarity with economic concepts;
• Their knowledge about national development and educational, employment opportunities across the country;
• The distribution of industrial activities and their impact in local societies.

Based on the assessment and data evaluation, the resulting education plan will prioritize sustainability across its three pillars: economic, social and environmental.

"We have been increasing our presence in the Chachas community with a drive to create a lasting positive impact through community empowerment and view the social evaluation model as a crucial step in nurturing a robust relationship with the community," said James Tworek, president and chief executive officer of Element79 Gold. "The overarching objective is to equip the community with accurate information and knowledge about the mining industry as a whole, as well as how we can grow and operate together, dispelling doubts and enabling mutually informed decision-making."

Local Chachas office opening

To facilitate its continuing community relations as well as increasing level of fieldwork ramping up to ore operations later in the year, the company has set up an official field office in Chachas, Arequipa, as of February, 2024.

Local miners -- formalizing agreements for work at Lucero in 2024 and beyond

Element79 is actively negotiating with local artisanal miners to formalize an agreement during the first quarter of 2024, enabling proper access to direct extraction. To formalize an agreement between the parties would ensure that all current and future artisanal production would be sold directly to Element79 as raw material (brosa) for processing, securing the legal production permits of the artisanal miners under the company's mineral leases, thereby harnessing an estimated 70 to 100 tons per week of production per month that is anticipated to restart in the second quarter 2024. Other aspects of the proposed agreement include extending the current work permit for as many as 15 years (requested), ensuring that all current production adheres to Element79's occupational health and safety and environmental standards, as well as several additional community-focused initiatives, including employment of local logistical and mining teams, and terms for fair remuneration for mine workers. The company looks forward to providing further updates on these processes in the near term as negotiations with the local miner groups conclude through March, 2024.

Additional social initiatives

Element79's community relations team has been present in Chachas 10 to 20 days per month over the past 1.5 years, helping and learning with the community. Through the company's presence and collaboration with UMA and the Chachas community and local artisanal miners, a number of additional social initiatives are being considered as potential future commitments with the local community, extending and fostering relationships, empowering:

• Child anemia diagnosis and reduction: targeting children aged zero to five years;
• Water access program: ensuring access to clean water;
• Start Link Internet: providing satellite Wi-Fi connectivity;
• Technical skill development: preparing locals for future employment opportunities;
• Local entrepreneurship: cultivating future product providers within the community.

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 2024.

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