Mr. Jeffrey Benavides reports

NEWLOX GOLD ANNOUNCES THE ANTIOQUIA COMMUNITY COEXISTENCE GOLD PROJECT IN COLOMBIA

Newlox Gold Ventures Corp. has signed an agreement to acquire 100 per cent of the Antioquia Community Coexistence project in San Roque, department of Antioquia, Colombia, for a total of $1.5-million (U.S.) to be paid in coming instalments. The Coexistence project will follow the coexistence model for relations with artisanal mining, which was spearheaded by Dr. Marcello Veiga and embraced by the Colombian government and local stakeholders. The project will provide local small miners access to modern mineral processing options through a partnership with Newlox Gold.

As part of the agreement, Newlox Gold's Coexistence project will be the exclusive processing facility for all feedstock mined from the Gramalote artisanal mines over an initial term of 21 years, with an automatic renewal of the agreement occurring when the underlying mineral concessions are renewed. The company intends to initially construct a 500-to-1,000-tonne-per-day processing plant to service the needs of local miners and anticipates that future demand may grow well beyond this level.

This groundbreaking initiative involves establishing and operating a processing plant dedicated to refining ore from initially up to 80 mining concessions within the immediate area, which are being granted by the Gramalote project, a gold development endeavour approximately 120 kilometres northeast of Medellin, Antioquia. To date, the government of Antioquia has announced the formalization of 60 artisanal mining areas into legal mining concessions, which will exclusively supply feedstock to the Coexistence project's processing plant. Newlox's processing plant will provide modern and environmentally friendly processing facilities to the local miners, which are expected to significantly improve the economic, social and environmental outcomes of artisanal mining.

Newlox has secured the exclusive rights to process all gold-bearing ore produced by the artisanal mining concessionaires granted in the area. In return, the company has pledged a comprehensive social responsibility program, reinvesting 20 per cent of the net, after-tax profit from the plant into a Colombia-focused community development fund. Management at Newlox Gold believes that reinvestment in Colombian mining communities through the development fund will assist in realizing social, environmental and economic diversification goals while fostering a strong relationship between the company and local stakeholders.

Newlox Gold will pay $1.5-million (U.S.) in coming scheduled increments to acquire 100 per cent of the Coexistence project, including the rights and permits necessary for the processing plant's operation. Once the processing plant is in operation, Newlox Gold will extend a credit facility of up to $500,000 to the local mining co-operatives to assist with the further development of their mines and help to scale their operations safely and sustainably. The company also plans to establish an analytical laboratory to assist local mining groups with grade control and operational management.

"In discussions with the community regarding the Coexistence project, miners have enthusiastically shared their satisfaction with the project's positive impact on social, environmental and overall quality of life in the province. With the conclusion of this process that began in 2004, the community is looking forward to the sustained benefits and improvements brought about by the project," commented Freddy Osvaldo Rodriguez, who served as the mayor of the town from 2016 to 2019. Mr. Rodriguez was pivotal in spearheading the formalization process in collaboration with the Gramalote project, the Antioquia government and the Colombian Mines Department.

"We are excited about the Coexistence project, as it aligns with our strategic goals and reflects our commitment to sustainable and socially responsible business practices. This project is a testament to the positive impact that collaboration and responsible mining can have on communities; our company is working to replicate this model in key sectors of Colombia," said Jeffrey Benavides, chief financial officer of Newlox Gold.

Newlox looks forward to a successful and impactful collaboration, bringing positive change to the community, fostering sustainable development and setting new benchmarks in responsible business practices.

Technical disclaimer

The company advises it is not basing any decision to produce on a feasibility study of reserves demonstrating the economic and technical viability of the project and also advises there is increased uncertainty and specific economic and technical risks of failure associated with any production decision. Grab sample results included in any press release are not necessarily indicative of the mineralization in general for the deposit. James Turner, PGeo, a qualified person within the meaning of National Instrument 43-101, has prepared, supervised the preparation of and approved the contents of this news release.

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