Mr. James Tworek reports

ELEMENT79 GOLD CORP SECURES LOI FOR LAUNCHING TAILINGS REPROCESSING BUSINESS IN AREQUIPA, PERU

Element79 Gold Corp. has signed a letter of intent (LOI) with SMRL Palaza 16, marking a significant milestone in the company's strategic efforts to restart the Lucero mine and concentrate its focus in the Arequipa, Peru, region. This agreement represents a unique and substantial economic opportunity for both parties involved, with multiple additional social and environmental benefits for the local region and community.

Under the terms of the LOI, Element79 Gold will have the exclusive right to purchase and process approximately 1.3 million tons of tailings currently controlled by Palaza. These tailings, a byproduct of previous mining activities at the Shila and Paola mines (now known as the Lucero mine), present a valuable resource for reprocessing for commercial benefit, to co-operatively strengthen regional and community ties via Palaza's long-term relationships in the region, as well as the tailings project stands to become a stronger foothold for the company's mining operations in the region immediately surrounding the Lucero mine.

Key highlights of the LOI agreement:

Strategic acquisition: Element79 Gold will purchase the tailings from Palaza for a competitive price of $10 (U.S.) per ton, plus VAT (value-added tax) (18 per cent), with a base case (optional total batch purchase) of $10 per metric ton at $2,200 (U.S.) per ounce of gold, subject to increases based on the market value of gold at the time that batches are purchased. This acquisition aligns with Element79 Gold's strategic objective to enhance its resource base. The National Instrument 43-101 and PEA (preliminary economic assessment) studies to be completed on the tailings piles during the due diligence period and through 2024 will feed further institutional funding of the company's growth.

Construction of processing plant: Palaza has authorized Element79 Gold to construct a processing plant on its property. This facility will not only process the acquired tailings but also become a foothold to accommodate other mineral ore inputs, from Lucero's production and regional artisanal small-scale miners (ASMs), with an eye to maximize operational efficiency and output.

Initial deposit and due diligence: Element79 Gold will make an initial non-refundable deposit of $25,000 (U.S.), followed by a comprehensive due diligence period of 75 days. This thorough evaluation will ensure the viability and profitability of the reprocessing project. Upon completion of due diligence, an additional $50,000 (U.S.) deposit will be required to proceed, in conjunction with the completion of the definitive agreement. All deposits paid will be credited as prepayments for tailings.

Royalties and economic impact: In addition to the purchase price, for all tailings processed, Element79 Gold will pay Palaza a 1-per-cent royalty based on the London Metals Exchange (LME) spot price of gold, reflecting the dynamic and lucrative nature of this venture. This agreement is poised to generate significant economic benefits for both Element79 Gold and Palaza, as well as contribute positively to the local economy in Chachas, and other neighbouring communities in Arequipa.

New technologies being tested to implement: Element79 Gold has been reviewing a number of ways to increase the safety and minimize the environmental impact of the proposed tailings processing plant, and through its due diligence period, will be testing milling and processing with and without chemicals, milled ore beneficiation, efficiencies and soil impermeability to prevent soil leaching.

Community and environmental considerations: The project will be executed with full compliance with local regulations and in close collaboration with Chachas Community and other surface landholders. Element79 Gold is committed to ensuring that all activities meet stringent environmental and community standards.

Project data and economic projections

Total tailings volume: Approximately 1.3 million tons of tailings available for reprocessing, located on the same ingress/egress road to the Lucero mine.

Processing plant capacity: The new plant will have the capability to handle up to 350 tons per day (tpd) of mineral.

Economic impact: The agreement is expected to generate substantial revenue streams for both parties, with significant contributions to the local economy through job creation and community investments.

Potential revenue generation from tailings

Note: * All estimates subject to change via data collected via the due diligence period, to be reaffirmed via third party pre-economic analysis report.

Estimated recovery: Based on 2011 and 2012 Plenge Lab tests, AuEq (gold equivalent) found in the tailings at that time was approximately 1.5 grams per tonne. Gold solubility/recovery from the tailings is projected at 85 per cent and silver at 75 per cent. Palaza's estimates are that there is approximately 50,000 ounces of gold equivalent recoverable through the life of the project.

Projected revenue: Potential estimated gross AuEq of $100-million (assuming $2,000 gold price) with 80-per-cent recoverable resources ($80-million), minus $16-million input (tailings) cost and scalable $6-million to $20-million plant cost, resulting in $44-million to $58-million gross over a 15-year project life ($2.9-million to $5.3-million annual gross).

Social and environmental benefits

Social: This venture has been a long-standing issue for the local population by completing the final remediation of the with the four piles of dry-stacked tailings that have been left inert and covered by biomembranes and limestone rock for approximately 19 years without remediation. In reprocessing these tailings, they will be put in their final resting place along with additional tailings created by production from Lucero and other regional ASMs.

Environmental: Cleans up a benign environmental issue that has been outstanding for the past 20 years.

Economic: Creates a revenue-positive project that serves as a catalyst for building a production plant on site and becoming a regional hub for local ASMs. A common thread of conversation with the Chachas community and the Lomas Doradas artisanal mining association has been the desire to have a plant more regionally proximate to the community, as they are currently shipping mined ores approximately 600 kilometres away to have it processed today. Helping to eliminate logistical costs, risks and time are all beneficial factors to local miners.

Next steps

Due diligence: Upon paying the deposit, the company will have 75 days to complete due diligence, which data will feed a National Instrument 43-101 mineral resource estimate report and preliminary economic assessment (PEA). A go/no-go decision will follow these reports, with a $50,000 (U.S.) payment due upon the completion of the definitive agreement. All deposits paid will be credited as prepayments for tailings.

The company will pull augur samples from all four piles and, provided that lab tests meet required internal decision-making standards, the company will have an NI 43-101 compliant mineral resource estimate of the tailings generated as well as a third party PEA completed, which will encompass the project economics, work flow through the life of the project and the final resting place for up to 2.5 million tons of tailings generated from processing the tailings and other throughput.

The company anticipates that these reports will form the foundation of what it will require to obtain institutional funding for the development of the mill/tailings processing facility as well as restart commercial production at the Lucero mine.

Permitting, community consultation: Securing permits for working with the tailings and building a plant will be process undertaken with the Chachas community and state authorities through fall 2024/winter 2025, aiming for a 90-day plant construction start in estimated end of Q1 to start of Q2 2025 after the rainy season ends.

"We are thrilled to enter into this strategic partnership with Palaza, which underscores our ongoing commitment to strengthening our presence and operational capacity with innovative and sustainable mining practices," said James Tworek, chief executive officer and director of Element79 Gold. "The Palaza team have worked in the region for decades, have solid local relationships and have valuable experience of having explored and worked at the Shila mine in the past. The end point of this agreement not only enhances Element79's accessible resource base but also positions us for long-term growth and profitability, while helping remediate the tailings piles to stable closure as well as provide a solution to many of the local logistical obstacles to increasing production from the Lucero mine and other mines in the region. We are confident that the reprocessing of these tailings will yield significant economic benefits for both parties and the communities involved as well as strengthen our presence in the Peruvian mining sector."

Qualified person

The technical information in this release has been reviewed and verified by Kim Kirkland, fellow of AusIMM No. 309585, chief operating officer of Element79 Gold, and a qualified person as defined by National Instrument 43-101.

About Element79 Gold Corp.

Element79 Gold is a precious metals mining company with a focus on exploring and 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 holds a portfolio of four properties along the Battle Mountain trend in Nevada, and the projects are believed to have significant potential for near-term resource development. The company has retained the Clover project for resource development purposes and signed a binding agreement to sell three projects with a closing date on or before Nov. 30, 2024.

The company also holds 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.

We seek Safe Harbor.