Mr. David Watkinson reports

EMERGENT METALS OPTIONS NEW YORK CANYON PROPERTY IN NEVADA TO IVANHOE ELECTRIC

Emergent Metals Corp. has entered into an option agreement for purchase and sale of the company's New York Canyon property to Ivanhoe Electric Inc. (IE). The property consists of 21 patented claims and 792 unpatented mining claims totalling about 16,000 acres (6,500 hectares). Located about 30 miles (48 kilometres) east of Hawthorne, the property hosts a copper skarn deposit at Longshot Ridge, and further skarn and porphyry exploration targets at Longshot Ridge, Copper Queen, Champion and Emma.

Key terms of the transaction are as follows:

• Emergent will grant IE the option to acquire 100 per cent of the property.
• The term of the option will be approximately 18 months ending on Aug. 1, 2025.
• In consideration for the option, IE will pay Emergent $300,000 (U.S.) upon signing of the agreement, of which approximately $157,000 (U.S.) will be used by Emergent to satisfy certain land payment obligations in respect of the property.
• IE will have the exclusive right to conduct exploration on the property during the option term.
• IE will be responsible for claim maintenance payments during the option term.
• Should IE elect to exercise its option to purchase the property, the purchase price will be $2-million (U.S.) which includes the option payment of $300,000 (U.S.) and remaining purchase price of $1.7-million.
• Of the remaining purchase price, $700,000 (U.S.) will be paid in cash.
• Of the remaining purchase price, $1-million (U.S.) will be paid in common stock of IE, to be issued at the higher of (1) the IE Sept. 19, 2023, follow-on public offering price of $13.50 (U.S.) per share, or (2) the 30-day volume-weighted average price determined on the date of exercise notice, but subject to stock exchange rules as well as a possible cash top-up in certain circumstances based on IE's future share price.
• On closing of the exercise of the option, Emergent will reserve a 1-per-cent net smelter royalty on claims within the property that are not already encumbered with a royalty of 1 per cent or greater from previous owners. However, IE will have the right prior to the commencement of commercial production to buy out the production royalty for a purchase price of $2-million (U.S.) in cash and/or IE shares.
• IE shall also retain a first right of refusal to acquire the production royalty in the event that Emergent wishes to sell, assign or transfer the production royalty to an unaffiliated third party. The transaction will occur between IE's subsidiary Ivanhoe Electric Nevada Holdings Inc. and Emergent's subsidiary Golden Arrow Mining Corp.

David Watkinson, president and chief executive officer of Emergent, stated: "If the option is exercised by IE, it will result in the monetization of the property through its sale within a relatively short time frame and fits with the acquisition and divestiture business model of the company. IE is the perfect partner to have at New York Canyon, as they have a propriety geophysical surveying technology called Typhoon that can detect the presence of sulphide minerals containing copper, nickel, gold and silver at depths of over 1.5 kilometres. IE will have the advantage of exploring a large 16,000-acre land package consolidated by Emergent since 2020, use of historic exploration work completed on the property by Searchlight Resources Inc. (formerly Canyon Copper Corp., formerly Aberdeen Mines Ltd.) and others prior to 2020, and use of recent exploration work completed by Kennecott Exploration Company from 2020 to 2023 on the property. We wish IE success in their upcoming exploration efforts."

About Emergent

Emergent is a gold and base metal exploration company focused on Nevada and Quebec. The company's strategy is to look for quality acquisitions, add value to these assets through exploration, and monetize them through sale, joint ventures, option, royalty and other transactions to create value for its shareholders (an acquisition and divestiture business model).

We seek Safe Harbor.