Mr. Brian Leeners reports

HOMERUN RESOURCES INC. ANNOUNCES CEO UPDATE TO SHAREHOLDERS

Homerun Resources Inc. has provided the following update from the chief executive officer, Brian Leeners, on the company's continuing business developments.

Dear shareholders, it is with great pleasure that we provide our shareholders with this update on the status of Homerun.

Firstly, we want to extend our utmost gratitude to everyone who has exercised their patience as we progress through the company's development stage -- the most important time in any company's existence. Nine months ago, on Aug. 9, 2023, we released a detailed overview of our comprehensive three-phase strategic development plan. That overview was provided so that we are in alignment with our shareholders by establishing a clearly articulated path forward and a level of accountability.

We are very pleased to say that phase 1 (the silica sand) has been an incredible success for Homerun, culminating in the December, 2024, announcement of our 40-year partnership with CBPM and the Bahia state government on our significant assets in the Belmonte silica sand district.

Homerun is now focused on increasing the in situ value of the assets we own in this world-class silica sand district. Belmonte is world-class based on the size of the district and the uniform and known high-quality natural grade. Securing our interest in this rare commodity is the cornerstone of our value and that should provide our shareholders with significant comfort. We are not hunting for value -- we are scaling and leveraging the value we have already secured. From a resource development perspective, we have compressed a five- to 10-year process into 12 months. During the next few months, we will be quantifying the value of the silica sand we have directly secured, and we will release more updates on those efforts shortly.

In parallel with the successful developments in phase 1, we have also been working on phase 2 (the production logistics) and phase 3 (vertical integration).

We initiated the logistics plan in first quarter 2024 after the announcement of the CBPM partnership. The required logistics for our silica sand production are: (1) extraction; (2) processing; (3) transport and storage; and (4) shipping. During first half 2024, we have been focused on a partnership strategy in these areas to reduce our need for capital expenditure financing. These strategic partnership discussions are in process, and we expect announcements in this regard over the next three months. From a mine development perspective, we are on the path to compress a traditional two- to three-year mine development to cash flow process into 12 months.

We also initiated the vertical integration plan in Q1 2024 after the announcement of the CBPM partnership. One of our vertical integration pathways is silica to solar, which includes the following: (1) solar quality silica sand; (2) logistics to move the silica sand from the mine to the solar glass facility; (3) land for a solar glass plant; (4) a solar glass plant; and (5) an anchor customer for the solar glass within proximity of the solar glass plant. In the solar glass industry, the core competitive advantage is achieved through the minimization of logistics costs.

Homerun has the benefit of having a silica resource that is solar glass quality in situ. The plan is to ship that silica to a solar glass facility built in the Salvador, Bahia, area of Brazil. All the deliverables (and some added surprises) for the required steps to complete this vertical integration were put in process in Q1 2024. From a vertical integration perspective, we are on the path to building out this additional solar vertical revenue stream within a three-year time frame.

The second of our vertical integration pathways is silica to battery, which includes the following: (1) silicon quality silica sand; (2) logistics to move the silica sand from the mine to the silicon production facility; (3) land for a silicon production plant; (4) a battery-grade silicon production plant; and (5) an anchor customer for the battery-grade silicon. In our view, within the silicon battery industry, the core competitive advantage will be achieved through the application of research and development toward new methods of producing battery-grade silicon from silica.

As stated previously, Homerun has the benefit of having a high-quality silica resource in situ. The plan is to ship that silica to a silicon production facility built in the Salvador, Bahia, area of Brazil. All the deliverables for the required steps to complete this vertical integration were put in process in Q1 2024. From a vertical integration perspective, we are on the path to building out this first additional revenue stream within a two-year time frame.

Social and environmental benefit

We are acutely focused on delivering value that we can be proud of. We have already built a social benefit into every tonne of silica that we extract in Belmonte, Bahia. The funds generated will be invested into education programs in the areas within which Homerun operates in Bahia, Brazil.

On the environmental front, we have engaged world-class research and development institutions with the mandate to develop disruptive green processes in our business. It is our view that green value chains will provide a premium price mechanism in the continuing battle to preserve and benefit our environment. We believe the industry we are building in Bahia, Brazil, will assist in making the world a cleaner and greener place through the development of breakthrough technology to serve the energy transition. This is not a website environmental, social and governance promise -- this is built into our strategic business plan.

Shareholder value creation

Please read the above update. Regarding planning and execution, we have taken an idea to development in an incredibly short period of time and on an incredibly small budget. Through intelligent planning and fiscal responsibility, we have greatly limited shareholder dilution against value generation and have significantly expedited the traditional resource to production model from plus 10 years to under two years.

Concurrently, our vertical integration planning and path to additional revenues have been established and solidified, and we will be communicating these developments to our shareholders over the rest of 2024. So, stay tuned.

We are thrilled about our future and eager to share our continued vision and success with you. Thank you for your support, belief and patience.

Sincerely, your chief executive officer on behalf of the entire team at Homerun,

Brian Leeners,

Chief executive officer and director

About Homerun Resources Inc.

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

We seek Safe Harbor.