Mr. James Tworek reports

ELEMENT79 GOLD PUSHES FORWARD WITH COMMUNITY AND REGULATORY SUPPORT FOR LUCERO PROJECT IN AREQUIPA, PERU

Element79 Gold Corp. has provided progress updates regarding the Lucero project in Arequipa, Peru, following recent engagement with both state regulatory authorities and community representatives.

Field activities and Regional Directorate of Energy and Mines, Arequipa, collaboration

On Nov. 2, 2024, Element79 initiated field activities in co-ordination with the Regional Directorate of Energy and Mines (DREM) in Arequipa, working directly with engineer Ivan Prado, regional manager for energy and mines for the state. The company has been actively supporting the social, technical and environmental foundations of the Minas Lucero project through DREM's institutional channels. As part of this effort, Element79's team has related and received confirmation through these meetings that the time is of the essence and that the collective effort of all interested parties is to complete key contracts before the end of 2024.

The company has collaborated with DREM in preparing documentation to address the required REINFOs (mining rights system) compliance, including files under IGAFOM (Environmental Management Instrument for the Formalization of Mining). The most recent meeting with DREM on Nov. 12 provided updates on state plans to extend formalization support and facilitate essential land agreements between Element79 and the local community.

To this effect, the next milestone meeting is set for Nov. 16 in Chachas, with DREM representatives and key mining stakeholders, to discuss contract terms for long-term co-working, artisanal production from the mine, exploration and tailings reprocessing. All of these initiatives reinforce the company's position as the holder of the mineral rights to the Lucero mine and strengthen relationships between the company and the greater Chachas community.

National REINFO developments and industry implications

In light of much debated and possible coming changes to national REINFO regulations, the company recognizes both potential opportunities and challenges in relation to Element79's operations and timelines. The likelihood of the changes toward requiring formalization in the immediate term was a major factor, with a 75-per-cent-plus majority of the Chachas community voting in favour of Element79 being granted a long-term surface rights permit at the Oct. 6 community general assembly, as reported by the company on Oct. 9. Should extensions on requiring formalization of REINFO holders be granted, this may delay Element79's plans. While holding the opinion that Peru is a mining-friendly jurisdiction, Element79 remains vigilant regarding regulatory risks as the company aims for an integrated value chain that includes exploration, exploitation and processing to ensure the technical feasibility of the Minas Lucero project.

Project progress and next steps

Element79 remains committed to supporting formalization and fostering community relationships as the three phases of Minas Lucero project advance: exploration of the 67 unexploited veins and the high-sulphidation target; production from existing open veins (artisanal and by the company); and tailings reprocessing.

In the coming weeks, as Element79 continues its strategic engagements with DREM, JAL and Chachas community stakeholders, discussions are aimed at concluding contracts in the immediate future while maintaining a co-operative approach with local authorities to support the company's exploration, mining and tailings reprocessing efforts, formalization efforts, and foster constructive community relations.

About Element79 Gold Corp.

Element79 is a 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 at the mine and through reprocessing its tailings, 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.

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