Mr. Joel Sutherland reports

HAYASA METALS SIGNS TERM SHEET WITH A MAJOR MINING COMPANY TO ENTER A STRATEGIC EXPLORATION ALLIANCE

Hayasa Metals Inc. has executed a term sheet dated Sept. 17, 2026, that defines a strategic exploration alliance agreement with a major mining company to advance copper exploration and other critical metal exploration in a strategic area of interest in the southern part of Armenia. The term sheet is intended as a framework and is non-binding, except for certain limited provisions that are expressly stated to be binding, and the proposed alliance remains subject to the negotiation and execution of definitive agreements.

Under the agreement, Hayasa will collaborate with the MMC to conduct copper exploration within a defined alliance area of interest in the southern part of Armenia. The alliance aims to identify and develop economically viable mineral deposits in the Tethyan belt in Armenia.

Hayasa chief executive officer Joel Sutherland commented: "This partnership combines Hayasa's deep local knowledge and geological expertise with MMC's significant global exploration and mining experience. The definitive agreement is anticipated to be signed before the end of the year. We have already developed budgets and will commence basic preliminary fieldwork immediately."

Hayasa chairman Dennis Moore commented: "The team will be conducting an in-depth evaluation of areas where we believe the geological parameters for large-scale deposits exist, but where we have previously not had the resources or bandwidth to execute the required programs. Planning is already under way."

Strategic exploration alliance highlights from the term sheet

The alliance phase will have a term of two years from the date of execution and will be solely financed by MMC. One million U.S. dollars must be spent within the alliance AOI to enable a first option in a designated project.

The goal of the alliance phase is to identify one or more project areas with the potential for discovery of a large orebody. Such areas may be deemed a designated project under the alliance once the alliance minimum expenditures have been completed. MMC shall have the sole and exclusive option to exercise the first option and earn a 51-per-cent interest in each designated project by incurring or financing aggregate expenditures of $1-million (U.S.) per designated project over a period of two years. Hayasa will be the operator during the first option.

After completing the first expenditure threshold, MMC shall have the sole and exclusive right for the second option stage to increase its interest in the designated project from 51 per cent to 70 per cent by incurring or financing additional aggregate expenditures of $3-million (U.S.) in respect of such designated project over a period of three years following exercise of the first option.

Joint venture

A joint venture may be established in respect of a designated project if:

• MMC has completed the second option expenditures and delivered notice to Hayasa electing to form the joint venture; or
• MMC has completed the first option expenditures and delivered notice to Hayasa that it does not intend to complete the second option expenditures.

Upon establishment of the joint venture, the participating interests of MMC and Hayasa will be based on their respective interests in the designated project at that time, and each party shall finance its pro rata share of approved expenditures, subject to Hayasa's financing holiday (as described below).

During the 18-month period immediately following establishment of the joint venture, Hayasa may elect to defer financing its share of approved operational budgets, in which case MMC shall finance such amounts.

The proposed terms above and the alliance are subject to definitive documentation.

Termination of Vardenis option

Hayasa has received notice from Teck Resources Ltd. of its election to terminate its option on the Vardenis property.

Mr. Moore commented: "Vardenis comprises the largest colour anomaly in Armenia: a 35-square-kilometre hydrothermally altered surface expression, easily identifiable on satellite images and which hosts anomalous metal values throughout. The 93-square-kilometre exploration licence was returned to Hayasa after a 10-hole drill program in a portion of the licence area hosting the most robust molybdenum anomalies. The area drilled to date covers only approximately four square kilometres in the far northwestern section of the licence. While anomalous surface soil geochemistry -- particularly for gold -- extends a further six km to the east and southeast.

Hayasa management believes that the Vardenis licence has not yet been fully tested and that significant exploration potential remains. As most explorationists are aware, it usually takes more than one or two drill campaigns to make a significant discovery."

Mr. Sutherland added: "It is unfortunate that Vardenis was not able to satisfy the criteria for advancement at this time. Hayasa has received numerous inbound expressions of interest on the project. Additional updates will be forthcoming at the appropriate time."

Exchange approval of warrant extension

The exchange has consented to an extension in the expiry date of 11,165,22 units with 5,582,641 share purchase warrants attached with an exercise price of 22 cents for an additional year with the new exercise date of warrants being March 23, 2028. For further information, please refer to the company's news release dated Sept. 4, 2026.

Qualified person

The content of this news release was reviewed and approved by Mr. Moore, Hayasa's president and chairman, a qualified person as defined by National Instrument 43-101.

We seek Safe Harbor.