Mr. Christopher Anderson reports

GREAT ATLANTIC OPTIONS PILLEY'S ISLAND BASE METAL - PRECIOUS METAL PROJECT: HM EXPLORATION CORP WILL INCUR $3,500,000 IN EXPLORATION, ISSUE 6,300,000 SHARES AND GR WILL RETAIN A 1% NSR, BONUS PAYMENT WILL BE ISSUED IN THE EVENT OF A SUBSEQUENT SALE

Great Atlantic Resources Corp. has entered into an option agreement with HM Exploration Corp. whereby HM Exploration may acquire a 100-per-cent interest in the Pilley's Island project, located in Newfoundland, Canada.

On Sept. 25, 2025, the company entered into the option agreement with HM Exploration to grant a 100-per-cent interest in the Pilley's Island copper project through a combination of common share issuances and incurrence of exploration expenditures on the property, with additional bonus payments subject to certain milestones. Full details are stated below.

"Great Atlantic's primary focus is to advance our flagship Golden Promise mines project in Newfoundland, where we are currently conducting a bulk sample.

"At the same time, we are actively seeking partners to help unlock the value of our diverse portfolio of 100-per-cent-owned assets. This initial deal highlights the strength and quality of the many projects we have carefully acquired and refined over the past decade -- projects that deserve full attention and development. Looking ahead, we anticipate additional transactions in the pipeline, particularly relating to our tungsten assets and our exciting emerald discovery, a first in Newfoundland," stated Christopher Anderson, chief executive officer, Great Atlantic Resources.

The terms of the option agreement

HM Exploration will issue to the company an aggregate of 6.3 million common shares in the capital of HM Exploration at a deemed price of 19 cents per share as follows: 700,000 shares on or before the date that is 10 business days after approval of the Canadian Securities Exchange of the agreement; and the balance of 1.05 million common shares in four tranches and the final tranche of 1.4 million shares as the fifth and final annual tranche. It is also agreed that HM Exploration will spend an aggregate total of $3.5-million on exploration prior to Sept. 15, 2030, with $2.1-million of that sum being spent prior to Sept. 15, 2028.

Once the option is completed and all shares have been issued and expenditures met, Great Atlantic will retain a 1-per-cent net smelter royalty on the project.

Bonus agreement

In the event the company enters into an agreement in respect of an arm's-length transaction on the project during the option period under the agreement, the optionor and the original vendor to Great Atlantic will be entitled to receive additional consideration in aggregate equal to 5 per cent of the total cash and non-cash consideration payable to the company under the subsequent sale, paid within five years of the effective date and in accordance with the following the breakdown: (i) the optionor is entitled to 70 per cent of the consideration entitlement; and (ii) the original vendor to Great Atlantic is entitled to 30 per cent of the consideration entitlement. In the event a majority of the consideration entitlement is returned to shareholders of the company as a dividend, return of capital or other pro rata distribution, the company will be relieved of its obligations and will not be obligated to pay the consideration entitlement.

The company shall also pay the optionor and the original vendor to Great Atlantic aggregate bonus payments of $5-million in cash in the event, subsequent to the exercise of the option by the company, a cumulative mineral reserve and mineral resource is established, updated or expanded on the project in compliance with National Instrument 43-101, in any one or more mineral resource or mineral reserve category supported by a feasibility study and with a net present value of not less than $1-billion. The mineral resource bonus payment will be payable by the company to the optionor and the original vendor to Great Atlantic in accordance with the pro rata breakdown within 30 business days of the date of filing of the technical report in support of such feasibility study.

The Pilley's Island project is located in the Notre Dame Bay area of north-central Newfoundland. It consists of eight mineral licences covering a total land area of 12.25 square kilometres.

The project is located within the Notre Dame subzone of the Dunnage tectonostratigraphic zone. Most of the project is underlain by Ordovician submarine volcanic rocks of the Roberts Arm group, which is regionally identified as part of a mature arc sequence referred to as the Buchans-Roberts arm belt that also hosts the historic Buchan's mine (after Dunning et al., 1987).

Mining and exploration at the Pilley's Island project date back to the late 1800s when the Pilley's Island Pyrite Company Ltd. produced approximately 450,000 tonnes of massive pyritic ore from the Pilley's Island mine and old mines (after Kerr, 1996).

The project hosts multiple volcanogenic massive sulphide mineral occurrences with zinc, lead, copper, silver and/or gold. These include the past-producing Pilley's Island mine, Bull Road showing, Fragmental zone, 3B zone, Hole 42 and Spencers dock.

Great Atlantic and Unity Resources Inc. confirmed high-grade zinc, lead and copper mineralization plus silver and gold mineralization at a 2017 trench at the Bull Road showing. Great Atlantic and Unity Resources samples at this trench included (Great Atlantic news release of Dec. 14, 2017):

• Channel sample: 15.40 per cent zinc, 6.60 per cent lead, 4.66 per cent copper and 111.50 grams per tonne silver over 1.05-metre length;
• Channel sample: 17.30 per cent Zn, 0.10 per cent Pb, 2.97 per cent Cu and 31.20 g/t Ag over 0.70-metre length;
• Grab samples up to 40.8 per cent Zn, 20.0 per cent Pb, 8.36 per cent Cu, 148.1 g/t Ag and 2.28 g/t gold.

The Bull Road showing is a polylithic slump breccia of volcanogenic massive sulphide mineralization containing massive sulphide clasts up to greater than a metre in length.Massive sulphide mineralization at 2017 Bull Road showing trench.

Great Atlantic located semi-massive to massive sulphide mineralization during 2024 in the general area of the Fragmental zone (Great Atlantic news release of Sept. 26, 2024). These samples yielded anomalous to highly anomalous values for gold, silver, copper, lead and zinc including up to 1.32 g/t gold, 4.36 per cent zinc, 0.61 per cent lead and 6,499 parts per million copper.

David Martin, PGeo (New Brunswick and Newfoundland and Labrador), a qualified person as defined by National Instrument 43-101, vice-president, exploration, for Great Atlantic, approved the technical information contained in this news release.

About Great Atlantic Resources Corp.

Great Atlantic is a Canadian exploration company focused on the discovery and development of mineral assets in the resource-rich and sovereign-risk-free realm of Atlantic Canada, one of the No. 1 mining regions of the world. Great Atlantic is currently surging forward building the company utilizing a project generation model, with a special focus on the most critical elements on the planet that are prominent in Atlantic Canada: gold, copper, zinc, nickel, cobalt, antimony and tungsten.

We seek Safe Harbor.