Mr. Gord Friesen reports

FREEPORT ANNOUNCES LICENSE RENEWAL FOR YANDERA COPPER PROJECT, ONE OF THE WORLD'S LARGEST UNDEVELOPED COPPER PROJECTS

Papua New Guinea's Minister for Mining, the Hon. Sir Ano Pala, has approved the renewal of Freeport Resources Inc.'s Yandera copper project's exploration licence 1335 (EL) through Nov. 19, 2023, in accordance with the regulatory processes prescribed by the Papua New Guinea (PNG) Mining Act.

"We are pleased to have successfully completed the exploration licence renewal process and would like to thank the Mining Advisory Council and the government of PNG for their dedication in advancing large-scale resource projects such as Yandera copper," commented Dr. Nathan Chutas, senior vice-president of operations for Freeport Resources. "The renewal Yandera copper project's exploration licence demonstrates the commitment of the government of PNG to build strong, working relationships with mineral exploration and development companies such as Freeport Resources, to drive economic growth through the responsible development of Papua New Guinea's vast natural resources," said Dr. Chutas, who continued, "This is a major milestone for the company. More than $200-million (U.S.) has been expended on the project since 2005, culminating in a comprehensive 2017 prefeasibility study delineating one of the world's largest undeveloped copper resources. With the licence renewal now in hand, we are anxious to commence work on the definitive feasibility study and accelerate ongoing discussions with potential strategic partners for development of the mine."

Yandera -- definitive feasibility study

Licence EL 1335 covers the 245.5-square kilometr tenemenet comprising Freeport Resources' wholly owned Yandera copper project. Approximately $200-million (U.S.) in exploration and development expenditures has been spent on EL 1335 since 2005. Work completed and studies financed to date include approximately 154,600 metres of exploration drilling, the vast majority of which has focused on the Yandera Central deposit, as well as scoping studies, engineering studies, environmental studies, a prefeasibility study and infrastructure-related studies.

The renewal of EL 1335, through Nov. 19, 2023, allows Freeport Resources to commence work on a definitive feasibility study to advance the Yandera copper project toward a final investment decision. Concurrent with the definitive feasibility study program, Freeport Resources will accelerate continuing discussions with key international strategic investors and prospective partners for development of the Yandera copper project. Demand for copper is forecast to undergo unprecedented structural change driven by the global energy transition with mined copper supply forecast to enter a deficit position starting as early as 2025. The project's proximity to Asia, the world's largest consumer of copper metal, positions the Yandera copper project as an attractive new source of long-term copper supply.

The definitive feasibility study will build on earlier work undertaken with local and regional communities to determine opportunities to achieve mutually beneficial partnerships and sustainable long-term social benefits related to job creation, indigenous advancement, health and wellness, environment, education, and community development. Freeport Resources is also planning a wider exploration program of porphyry copper targets within the largely underexplored 245.5 square km land package.

About the Yandera copper project

The Yandera copper project is located in the highly prolific PNG orogenic belt, the same geological arc as some of the world's largest gold and copper deposits, including Grasberg, Frieda River, Porgera, Lihir, Wafi-Golpu and Kainantu. Yandera is a project of strategic national interest in PNG and has the potential to become one of the country's most significant copper mines.

The Yandera copper project is 95 km southwest of the capital city of Madang province and 235 km to the northwest of Lae, which is the largest port city in PNG and an important industrial centre. As one of the largest undeveloped copper resources in the world, the Yandera project has the potential to support communities and create jobs along the Yandera corridor. The company anticipates the potential economic influence of the Yandera copper project could span five provinces and create wealth for generations, including, but not limited to, strategic road and highway building, power generation, and related infrastructure.

A preliminary feasibility study, titled "Independent Technical Report on the Yandera Project -- Pre-Feasibility Study," prepared by Worley Parsons, with an effective date of Nov. 27, 2017, estimated a historical open-pit, measured and indicated resource of 728 million tonnes grading 0.39 per cent copper equivalent.

Freeport and the community

The landowners and communities of Yandera are stakeholders in the Yandera project. The overwhelming community support that the company received at the warden's hearing this past summer demonstrates the level of commitment the people of Yandera have for the project. Freeport is also firmly committed to advancing the project and continuing support of the community. Recently, the company introduced a program to assist the villagers with getting ID cards. The company expects to introduce new initiatives along these lines in the new year and be an active and visible presence in the community.

Qualified person

Dr. Chutas, PhD, CPG, senior vice-president of operations for Freeport Resources, is a qualified person for the purposes of National Instrument 43-101. Dr. Chutas has reviewed and approved the technical content in this announcement.

About Freeport Resources Inc.

Freeport Resources is a Canadian mineral exploration company with a primary focus on advancing the development of the Yandera copper-gold-molybdenum project, located in Madang province, Papua New Guinea. The Yandera project is one of the largest undeveloped copper-gold deposits in the world covering approximately 245.5 square kilometres.

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