Mr. Gord Friesen reports

FREEPORT COMMENCES DISCUSSIONS WITH KUMUL MINERALS HOLDINGS LIMITED TO ADVANCE THE YANDERA COPPER PROJECT, ONE OF THE WORLD'S LARGEST UNDEVELOPED COPPER PROJECTS

Freeport Resources Inc. has entered into a memorandum of understanding (MoU) with Kumul Minerals Holdings Ltd., Papua New Guinea's state-owned mining investment company, to co-operate on the advancement and strategic development of the Yandera copper project located in Papua New Guinea (PNG).

The MoU establishes a framework for collaboration and information sharing as the parties evaluate potential pathways to advance Yandera, including co-ordinated engagement with government stakeholders and a review of strategic options that could support long-term project development. The MoU is non-binding and does not create any obligation for either party to complete a transaction or enter into a definitive agreement.

Freeport Resources retains full ownership and control of the Yandera copper project and continues to actively evaluate a range of financing and strategic alternatives to unlock value for shareholders. The company believes that early, constructive engagement with Kumul Minerals reflects the state's interest in the orderly and transparent development of nationally significant mineral assets and enhances the project's strategic positioning.

"Kumul Minerals plays an important role in representing the state's commercial interests in Papua New Guinea's mining sector and brings valuable institutional insight," said Nathan Chutas, senior vice-president operations, director and qualified person. "This MoU supports our efforts to advance Yandera while preserving full flexibility to pursue the most compelling outcomes for the project and its stakeholders." The MoU has an initial term of 90 days, during which the parties may explore potential structures for future co-operation. Any binding arrangements would be subject to further negotiation and the execution of definitive agreements.

Strategic partners

The company is also pleased to announce that it has commenced discussions with several potential strategic partners to advance the Yandera copper project to definitive feasibility study. Discussions with potential strategic partners have included the signing of non-disclosure agreements (NDAs) and, in certain instances, signing of non-binding, non-exclusive memorandums of understanding agreeing to co-operate in the further advancement, development and strategic planning for the Yandera copper project.

Freeport Resources has initiated this strategic outreach process with the objective of advancing the project and maximizing its value. The company believes the project is significantly undervalued based on historical expenditures, current copper prices and the potential for resource expansion.

Gord Friesen, CEO, noted: "Freeport Resources has experienced a material increase in inbound interest relating to its wholly owned Yandera copper project which the company believes is driven by evolving macro conditions including record setting copper and gold prices coupled with Yandera copper's strategic location in the Asia-Pacific region. Yandera is one of the world's largest undeveloped copper projects and ranks as the largest advanced, undeveloped copper project in Asia, the world's leading copper refiner and consumer. Over $200-million (U.S.) has been expended on the project since 2005, culminating in a comprehensive 2017 pre-feasibility study delineating one of the world's largest undeveloped copper resources. With the copper price hitting new highs on unprecedented demand, timing for discussions is ideal and we are excited to have commenced discourse with potential strategic partners to advance the project through to a definitive feasibility study and development of the mine. We look forward to updating shareholders as discussions progress."

(*) Independent technical report on the Yandera project -- prefeasibility study, prepared for Era Resources Inc. and dated effective Nov. 27, 2017.

Qualified person

Dr. Nathan 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 its 100-per-cent-owned 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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