Mr. Ken Johnson reports

LIPARI ANNOUNCES ANTICIPATED DELAY IN FILING ANNUAL FILINGS AND BOARD RESIGNATIONS

Lipari Mining Ltd. anticipates that it will be unable to meet the filing deadline of April 1, 2026, for the filing of the following continuous disclosure documents:

• The company's audited annual financial statements for the year ended Sept. 30, 2025, as required by Section 4.2 of National Instrument 51-102, Continuous Disclosure Obligations;
• Management's discussion and analysis for the year ended Sept. 30, 2025, as required by Section 5.1 of NI 51-102;
• The related chief executive officer and chief financial officer certifications required under National Instrument 52-109, Certification of Disclosure in Issuers' Annual and Interim Filings.

The anticipated delay in filing the annual filings arises primarily from circumstances outside of the company's control, notwithstanding the exercise of reasonable diligence by the company.

In particular, the company has experienced an unexpected loss of anticipated liquidity resulting from both the current downturn in the natural diamond market and delays of a third party counterparty under an anticipated financing arrangement. As a consequence of this reduced liquidity, the company was unable to satisfy outstanding audit fees. As a result, the company's auditor has temporarily suspended audit work pending payment. The auditor has not resigned, remains the company's auditor of record and is prepared to resume audit work upon payment.

The company is in the process of organizing alternative financing to restore liquidity. The company currently expects that the auditor will be in a position to complete the audit of the annual financial statements on or about May 15, 2026, with the annual filings to be filed as soon as practicable thereafter.

Given the level of liquidity in the company's shares, the company has determined that it is not eligible to apply to the Ontario Securities Commission, as principal regulator, for a management cease trade order under National Policy 12-203, Management Cease Trade Orders. The company expects the Ontario Securities Commission will issue a failure-to-file cease trade order after the filing deadline.

The company confirms that it is not subject to any insolvency proceedings. Other than as disclosed in this news release, there have been no material changes in the business or affairs of the company that have not been previously disclosed.

Changes in the board of directors

The company also announces that Maurice Aftergut is retiring from the board of directors and as co-chairman of the company, and he has tendered his resignation effective March 12, 2026. The board of directors thanks Mr. Aftergut for his leadership and support of the company.

The company also announces that Paul Zimnisky has tendered his resignation from the board of directors, effective March 13, 2026. The board of directors thanks Mr. Zimnisky for his service and valuable contributions to the company, and wishes him continued success in his future endeavours.

The company is in the process of identifying a new director or directors, as applicable, and anticipates being in a position to confirm the new director or directors shortly.

About Lipari Mining Ltd.

Lipari has been South America's leading diamond producer, with a record of operations at the Brauna diamond mine in Brazil, which has produced over 1.2 million carats to date. Lipari is now applying its expertise to advance the highly prospective Tchitengo diamond project in Angola, marking the next phase of growth for the company.

Lipari's shares are listed for trading on Cboe Canada and trade under the symbol LML, and on the Frankfurt Stock Exchange under the symbol 0Y90.

We seek Safe Harbor.