Mr. James Tworek reports

ELEMENT79 GOLD CORP. COMMENTS ON PERUVIAN GOVERNMENT REFORM CENTRALIZING OVERSIGHT OF SMALL-SCALE MINING UNDER MINISTRY OF ENERGY AND MINES

Element79 Gold Corp. has been informed about recent developments affecting the mining sector in Peru, where the company's flagship Lucero project is located.

Highlights:

The Peruvian government has enacted Supreme Decree No. 009-2025-EM , transferring oversight of small-scale and artisanal mining from regional governments to the Ministry of Energy and Mines (Minem).

The deadline for the mandated formalization of Reinfo (Comprehensive Mining Formalization Registry) permit holders with mineral right holders has been extended until Dec. 31, 2025, giving operators more time to formalize.

Minem's Directorate General of Mining Formalization will now handle all administrative, monitoring and enforcement processes related to mining formalization. Reform is grounded in Law No. 32213, published in December, 2024.

A new national traceability platform (SIPMMA) is being launched to improve transparency and monitoring of registered small-scale mining operations.

The reform has raised concerns among regional governments over loss of local oversight and potential impacts on decentralized governance.

Element79 Gold supports centralized oversight if implemented with community engagement and regional collaboration.

The Lucero project remains a core focus, with continued efforts to formalize local artisanal miners and advance exploration toward production.

The company reaffirms its commitment to social investment and long-term community relationships in Chachas and surrounding areas.

Following success in Nevada asset development and sales, Element79 Gold will reignite strategic initiatives in that jurisdiction.

In May, 2025, the government of Peru enacted Supreme Decree No. 009-2025-EM, which extends the validity of the Comprehensive Mining Formalization Registry (Reinfo) until Dec. 31, 2025, and shifts responsibility for supervising small-scale and artisanal mining from regional governments to the Ministry of Energy and Mines (Minem).

Under this reform, the Directorate General of Mining Formalization within MINEM will assume exclusive responsibility for the administrative processing, monitoring and enforcement of formalization-related matters. The changes are grounded in Law No. 32213, published in December, 2024, and are designed to enable a more centralized, technical and transparent regulatory process.

This centralization will be further supported by the implementation of a new national traceability platform, the Sistema Interoperable de la Pequena Mineria y Mineria Artesanal (SIPMMA), which aims to improve oversight and data integration across registered mining activities.

While the reform has raised concerns among regional governments regarding reduced local oversight and the implications for decentralized governance, Element79 believes the changes may ultimately contribute to improved regulatory clarity and operational efficiencies across the sector.

"We are closely monitoring this policy shift and its implementation," commented James Tworek, chief executive officer and director of Element79 Gold. "Given Lucero's location and strategic focus within the artisanal and small-scale mining segment, we view enhanced regulatory structure and centralized oversight as potentially beneficial, provided that community engagement and regional collaboration remain part of the process."

The company further notes that the extension of the Reinfo deadline through December, 2025, allows additional time for regional operators and stakeholders to advance their formalization efforts, which may support engagement strategies with artisanal miners operating within and around the Lucero project.

Element79 Gold believes in the long-term potential of the Lucero project continues to maintain the project's mineral leases and is proud of the community-based investments, social development efforts and relationships it has built since acquiring Lucero at the end of June, 2022. The company will continue its efforts in forging contracts with the local community for both the formalization of local artisanal miners as well as the company's own exploration and development of Lucero into a producing mine.

Corporate strategy refocus

In addition to efforts and campaigns to work in Chachas, the company's management and board identifies that following notable successes in developing and monetizing assets in Nevada, it will be carrying out a renewed strategic focus in the region. This strategic shift will include dealing and development of its current portfolio of Nevada projects, growth of the management team with regionally specific exploration experience, as well as is reviewing additional merger and acquisition opportunities in the region.

About Element79 Gold Corp.

Element79 Gold is a mining company focused on the exploration and development of high-grade gold and silver projects in the Americas. The company's flagship asset, the Lucero project, is a past-producing high-grade gold-silver mine located in Arequipa, Peru. The company is actively advancing Lucero toward renewed production and tailings reprocessing while supporting formalization initiatives with local operators. The company also holds several exploration projects along Nevada's Battle Mountain trend, a region renowned for prolific gold production, and these assets are under contract for sale in the first half of 2025.

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