Mr. James Tworek reports

ELEMENT79 GOLD CORP. PROVIDES CORPORATE GUIDANCE AND STRATEGIC UPDATE FOR REMAINDER OF 2025

Element79 Gold Corp. has provided its forward corporate guidance for the remainder of 2025, outlined recent strategic developments regarding its Lucero project in Peru and reaffirmed its operational focus on its advanced-stage projects in Nevada, United States.

Force majeure declared on Lucero project

The company formally invoked the force majeure clause under its agreement with Condor Resources Inc. with respect to the Lucero project due to a combination of social, regulatory and political barriers, which have effectively prevented the company from lawfully executing planned exploration and development activities, despite holding full mineral rights.

A force majeure event refers to unforeseen circumstances beyond a party's control -- such as acts of government, social unrest or natural disasters -- that prevent contractual obligations from being fulfilled. In the case of Lucero, the following factors have contributed to the declaration:

• Evolving and inconsistent Peruvian federal policies on small-scale mining formalization, creating uncertainty in legal enforceability and timelines;
• Political instability and leadership vacuums, with current municipal governance in Chachas in transition and the outgoing mayor largely absent from the community;
• Legacy community mistrust and unmet promises from prior owners, complicating local engagement efforts;
• Continuing unauthorized artisanal mining by community members operating outside legal frameworks and without formalized agreements.

Element79 has spent 2.5 years of extensive, evolving efforts to foster community relationships and negotiate access agreements in good faith, and the company believes in developing a win-win solution with the Chachas community for the restart of the past-producing Lucero mine, the tailings and development of a regional processing plant as well as exploring the geological assets inside the Lucero concessions. The company and its contracted financial consultants remain staunchly optimistic to finance future development at Lucero as agreements for surface rights agreements are reached. In the short term, internal reports and formal feedback from its social engagement team (GAE Peru) and regional mining authorities (DREM Arequipa) suggest that no material progress toward surface rights agreements is likely for the remainder of 2025.

Path toward resolution and reworking terms with Condor Resources

Over the next 12 months, Element79 will:

• Continue monitoring regulatory developments, particularly the anticipated implementation of MAPE legislation, which may clarify formalization mechanisms between artisanal miners and mineral right holders;
• Maintain social outreach campaigns in Chachas through the company's social engagement team, GAE Peru, preparing the groundwork for continuing engagement pre- and postmunicipal elections in early 2026;
• Continue dialogue with Condor Resources to explore restructuring the terms of the original Lucero agreement, with the goal of establishing a more reasonable, flexible and mutually beneficial framework as on-the-ground conditions allow for meaningful work to resume at Lucero.

Strategic focus shift to Nevada projects

In line with this operational pivot, Element79 is reaffirming its near-term focus on its U.S.-based assets:

• The company will retain and advance development at the Elephant project in Nevada. A technical report to formally organize historical work under the National Instrument 43-101 framework, coming work plan and exploration campaign are currently being finalized and will be publicly disclosed shortly.
• The acquisition of the Gold Mountain project, a drill-ready asset also located in Nevada, is expected to close as soon as possible, pending administrative timelines surrounding Canada Day and U.S. Independence Day holidays. A comprehensive development plan will be issued thereafter.

Corporate outlook

As Element79 aligns its capital and human resources to near-term executable projects, the company remains committed to:

• Unlocking shareholder value through strategic asset optimization;
• Derisking its project portfolio by prioritizing jurisdictions with clear permitting paths;
• Continuing stakeholder engagement to support long-term success at Lucero when conditions become viable;
• Changes to the board of directors and management to reflect the evolving business model.

About Element79 Gold Corp.

Element79 Gold is a mining company focused on the exploration and development of high-grade gold and silver assets. Its principal asset is the past-producing Lucero project in Arequipa, Peru, where it aims to resume operations through both conventional mining and tailings reprocessing. In the United States, the company holds interests in multiple projects along Nevada's Battle Mountain trend. Additionally, Element79 Gold has completed the transfer of its Dale property in Ontario to its wholly owned subsidiary, Synergy Metals Corp., and is progressing through the plan-of-arrangement spinout process.

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