Mr. Michael Smith reports

ENTERS BINDING LETTER OF INTENT FOR VMP MINING CONCESSION IN ECUADOR

Hercules Resources Corp. has entered a binding letter of intent to acquire an interest in the VMP project, situated within the Alluriquin parish of the Santo Domingo canton, within the Santo Domingo de los Tsachilas province of Ecuador. The company intends to acquire 20 per cent of VMP from True North Liberty SRL for $650,000 (U.S.).

"Comprised of three mining concessions, the VMP project stands as a testament to the nation's burgeoning mining sector. We have also moved forward with our previous announcement of a $5-million funding commitment for our projects, including our commitment to True North Liberty," stated Michael Smith, president and chief executive officer of the company.

Under the small mining regime, the VMP project spans a total surface area of 162 hectares. The VMP project is formed by three, seamlessly contiguous mining concessions: VMP (154 hectares), Dos Rios (four hectares) and Procel (four hectares), with one current application for Fredy adding four additional hectares.

Geologically, the VMP project comprises basaltic lavas, volcanic tuffs, breccias and ultrabasic basement rocks belonging to the Cretaceous Pinon de la Sierra formation. These lithologies underline sedimentary rocks of the Upper Cretaceous Cayo de la Sierra formation.

The region's geological narrative extends farther as lithologies of oceanic origin, accreted to the continent during the Paleocene-Eocene era, find their place alongside Miocene intrusions of I type granite, diorite and granodiorite. These intrusions, emplaced within pre-existing rocks, give rise to mineralized structures and hint at the possible occurrence of porphyry mineralization.

In the wake of two extensive exploration campaigns, a total of 22 geochemical rock samples have been collected from mineralized structures, predominantly veins. Observations reveal the existence of 13 epimesothermal veins.

The VMP project has been partitioned into two distinct zones:

• La Palizada area: Distinguished by the presence of a formidable lahar, the region showcases island arc volcanic rocks of the Macuchi Eocene formation, interspersed with muscovitic felsic granites. These granites serve as hosts to epimesothermal gold veins, boasting historical grades ranging between 0.53 and 117.00 grams per tonne gold and an average width of 0.87 metre.
• The Central zone: Here, the lahar overlays a medium granulometry dioritic intrusive, akin to those housing epimesothermal porphyry-related gold veins. In some local intrusive outcrops, the presence of Type A and B veinlets is discernible. Historical gold grades within these veins range between 0.45 and 20.00 g/t Au, with an average width of 0.70 m.

"The VMP project is a solid step forward with our plan to acquire additional prospective projects. We are excited about historic high-grade veins that run through this property. Also, with previous technical exploration reports and the included infrastructure will aid in continuing exploration and exposing the mining potential of the project; definitive agreements are being ratified," stated Michael Smith, president and chief executive officer of the company.

Debt settlement

As previously announced on Feb. 13, 2024, the company has completed the debt settlement of $12,000 by way of the issuance of 57,142 common shares of the company.

Qualified person

John E. Bolanos, who is a qualified person under National Instrument 43-101, has reviewed and approved the technical content of this news release. Mr. Bolanos is an MSc mining geologist from Camborne School of Mines (United Kingdom) and a professional geologist engineer from the Central University of Ecuador (honours degree). He is a registered member of the Society for Mining, Metallurgy and Exploration (SME) of the United States.

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