Mr. Stephen Shefsky reports

JAMES BAY RESOURCES LIMITED ENTERS AN INVESTOR AGREEMENT FOR US LITIGATION FUNDING

James Bay Resources Ltd. has entered into an investor agreement with 1001399076 Ontario Inc., pursuant to which 1001 will assume responsibility for providing financing related to the company's continuing U.S. litigation claims against Wynn Resorts Ltd. (previously announced in the company's news release dated Oct. 3, 2024) and the claim against John Armstrong and his firm. In consideration for assuming the financing obligations associated with the U.S. claims, 1001 will be entitled to receive 80 per cent of the proceeds from any settlement or final judgment for which no appeal or further proceeding may be taken that may result from the U.S. claims. The remaining 20-per-cent interest in any final award will be retained by James Bay.

Under the terms of the agreement, the company will assign a series of its existing convertible debentures with an aggregate principal value of $452,000, held by the shareholders of 1001, to 1001. The company will not have any further obligations to repay the convertible debentures. However, in the event that a final award is not received within two years of the effective date of the agreement, holders of the convertible debentures shall have the option to convert the then outstanding principal and accrued interest under the convertible debentures into units of the company at the rate of five cents per unit, with each unit composed of a common share in the capital of the company and a common share purchase warrant, with each warrant exercisable at five cents for a common share, for a period of three years from the date the units are issued.

The assignment of the convertible debentures and the related final award arrangement with 1001 are intended to strengthen the company's financial position by transferring the cost and risk of litigation, while preserving a share of any favourable outcome for James Bay and its shareholders.

Completion of the transaction is subject to customary closing conditions and any required approvals.

About James Bay Resources Ltd.

James Bay is a Canadian company with 84,826,241 shares outstanding and trades on the Canadian Securities Exchange under the symbol JBR.

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