Mr. Brian Leeners reports

HOMERUN RESOURCES INC. EXECUTES FINAL AGREEMENT WITH CBPM FOR HIGH-PURITY QUARTZ SILICA IN BAHIA, BRAZIL

On Nov. 11, 2023, Homerun Resources Inc. completed another significant milestone in its strategic plan with the execution of the signed agreement between Homerun Resources and Companhia Baiana de Pesquisa Mineral (CBPM), detailing the terms regarding Homerun's exclusive right to extract high-purity silica sand sourced from CBPM's concessions near Santa Maria Eterna, Belmonte, Bahia, Brazil. Companhia Baiana de Pesquisa Mineral is the mineral research and development company of the state of Bahia, Brazil.

Henrique Carballal, president of CBPM, stated: "Firstly, it is an immense satisfaction to be able to build a partnership with a company like Homerun, which will prospect industrial sand in the municipality of Belmonte and will process this industrial sand, transforming it into pure silica and then into high-technology products, such as the cell that will enhance the production of photovoltaic energy in Brazil. This places the state of Bahia in a condition of economic and social development more focused on enhancing green industry, expanding an industrialization policy associated with our mineral potential, which today is focused on strategic minerals for the energy transition. Therefore, we believe that the partnership between CBPM and the state government with the company Homerun will be of fundamental importance in the development of other policies aimed at mineral development, focusing on the energy transition for the growth of Bahia in the areas: social, environmental and economic (translated from original Portuguese)."

Brian Leeners, chief executive officer of Homerun, stated: "We are extremely excited to have exclusive access to this incredibly high-grade HPQ silica sand supply in Bahia, Brazil, and equally excited about our growing partnership with CBPM and the state of Bahia, which is the pivotal relationship in the extension of our business plan, from extraction through processing and on to end-use manufacturing. CBPM shares our vision that this amazing resource can be leveraged with environmentally sound development, that will bring long-term economic and social benefit to the people of Bahia."

Under the CBPM agreement, Homerun will pay an extraction royalty of $50 Brazilian reals ($10 (U.S.)) per tonne of extracted silica sand. Any of the extracted silica sand sold outside of Brazil will be subject to a further 5-per-cent gross sales royalty in addition to the above extraction royalty. Homerun will make minimum annual royalty payments corresponding to the sale of a minimum annual production of 12,000 tons of processed sand, in addition to the above.

Homerun has further agreed to implement, jointly with CBPM, a fund for the development of education in the municipalities where Homerun's operations related to the extraction of the silica sand and the industrial units, related to the processing and subsequent end-use manufacturing that takes place. The parties will contribute equally, with CBPM contributing 10 per cent and Homerun contributing an additional 10 per cent of the amount of the royalties paid under the CBPM agreement. The administration of the fund will be exercised by a representative of CBPM and a representative of Homerun, based on bylaws to be prepared jointly by the parties, subject to the relevant laws and regulations of Bahia and Brazil.

The term of the CBPM agreement is for an initial 20-year term, from the date of execution, with an additional 20-year term if the CBPM agreement is in good standing at the end of the initial term. If the company transfers the CBPM agreement to another party, CBPM will receive 1 per cent of the amount received by the company for the transfer.

Homerun will pay $1-million Brazilian reals ($200,000 (U.S.)) to CBPM upon execution of the CBPM agreement and will pay another $1-million Brazilian reals ($200,000 (U.S.)) payment upon receipt of Brazilian regulatory approvals of the company's extraction plan. It should be noted that, historically, extraction activities in the district have received regulatory approval.

The CBPM agreement will be subject to the $1 (U.S.) per tonne royalty under the company's agreement with Beko Invest Ltd., which applies to every tonne of silica extracted and sold by the company or its affiliates in Brazil. Beko has been instrumental in the development and execution of the company's silica sand strategy in Brazil, to the benefit of the company's stakeholders.

About Homerun Resources Inc.

Homerun Resources is focused on the development of its business within the critical and energy materials sectors. With a steadfast commitment to operational excellence, sustainability and building shareholder value, Homerun Resources is poised to make a lasting impact in these industries.

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