Mr. Michael Smith reports

HERCULES RESOURCES CORP. PROVIDES CORPORATE UPDATE

Hercules Resources Corp. has provided an update on the P3 Los Tres mining interest in the Ponce Enriquez mining district of Ecuador, launched its new corporate website and granted incentive stock options.

P3 Los Tres mining concession

As part of its continuing due diligence, the company has started a topography survey of the P3 Los Tres mining concession for both alluvial and vein recognition. The company's operators have also received permission from the municipality and landowners to begin sampling on the concession. Hercules hopes to receive positive results soon. The sampling results will help the company determine next steps on a potential definitive agreement.

About the Ponce Enriquez mining district.

P3 is located in the Ponce Enriquez mining district, which is bounded (based on mineral occurrence data) with other subdistricts and surrounding mineral fields. These include Zaruma, Portovelo, Molleturo, and the neighbouring mineral belts of Ganarin and Tres Chorreras. The Ponce Enriquez district is mostly found on rocks of the Pallatanga unit. Stratigraphically, it lies near the contact of the Nazca and South American plates; therefore, the lithology and geology are related to the subduction zone that originate, mainly basaltic magmas of the island arc type, characterized by, tholeitic and alkaline basalts. For this reason, the geology in this southern part of the country is given by rock units, ranging from powerful Vulcan-sedimentary deposits corresponding to the Pallatanga unit, with an age of 65 million to 85 million years.

Geomorphologically, the region is located on the western flank of the western cordillera of the Ecuadorian Andes. Such regions are characterized by very strong and dissected reliefs, with dendritic drainages, and are subparallel to the piedmont zone. These zones are significant for flat or slightly undulating reliefs, related to secondary deposits. Constituted by an association of ophiolitic rocks, composed mainly of basalts, with hyaloclastics and pelagic sediments, intraflows, intrusions, tectonic slices of microgabbros and ultramafic rocks, later intrusive, extrusive dacitic-rhyodacitic bodies with outer relicts of dacitic tuffs of the Saraguro group.

Website

In late November the company launched its new website, which encompasses all things Hercules, including project updates, recent news, stock price and financial statements. Also, please look for updates on the company's soon-to-be-released social media pages soon.

Stock options

The company has granted 1,775,000 director, officer and advisory consultant incentive stock options of 1,775,000 common shares of the company's capital stock, with an exercise price of 15.5 cents per share. These are exercisable up to Jan. 17, 2029, at a price of 15.5 cents per share.

Michael Smith, chief executive officer of Hercules, comments: "I would like to first start by wishing the company's shareholders a happy and prosperous new year. Moving in to 2024, I am eager to continue exploration and exploitation in and around Ecuador or beyond. We currently have our sights set on several exciting concessions with potential joint venture and option partners. I feel that focusing our resources on Ecuador, with its mineral-rich geography and pro-mining government, will bring noted attention to our growing portfolio of concessions. I look forward to updating you as developments continue."

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