Mr. Andrew Maloney reports

THEMAC RESOURCES GROUP LIMITED ANNOUNCES COURT RULING REGARDING WATER RIGHTS

New Mexico Copper Corp. (NMCC), owned by Themac Resources Group Ltd., has received the decision from the State of New Mexico Third District Court on Aug. 23, 2023, to reinstate certain water rights for the Copper Flat project in southern New Mexico.

In September, 2021, the company received a decision from the New Mexico State Court of Appeals with respect to a decision made by the court in December, 2017, which ruled that the company's full set of inchoate water rights were extinguished due to an interruption in a plan to develop the rights as required under the state's Mendenhall doctrine, and that the company's vested water rights at several mine site wells were forfeited or abandoned due to non-use. In an appeal of the district court's ruling brought by NMCC and Frost & Gray, the New Mexico State Court of Appeals affirmed the district court's ruling in favour of Frost & Gray, granting it 861.84 acre feet per year (afy), and reversed in part the district court's rulings regarding the loss of vested rights in the mine site wells, as well as the ruling measuring water rights at the Copper Flat open pit at 34 acre feet for dust control. The appeals court remanded the matter to the district court to consider NMCC's vested rights in certain mine site wells and the open pit.

In the most recent hearing, held June 16, 2022, NMCC and Frost & Gray sought the reinstatement of approximately 898 afy. In a ruling entered Aug. 23, 2023, the district court recognized the vested rights in seven wells totalling 195.92 afy, as shown in the attached table.

Well               Amount                           Purpose              Priority

LRG-4652-S-4        3 afy                     Livestock use         Dec. 31, 1943
LRG-4652-S-6       39 afy                     Placer mining         Dec. 31, 1963
LRG-4652-S-7        3 afy                     Livestock use         Dec. 31, 1943
LRG-4652-S-8        3 afy        Domestic and livestock use         Dec. 31, 1943
LRG-4652-S-9     72.6 afy    Placer mining and construction         Dec. 31, 1974
LRG-4652-S-10    72.6 afy    Placer mining and construction         Dec. 31, 1975
LRG-4652-S-17    5.52 afy                      Dust control        March 31, 1982
                34.65 afy                       Evaporation

The court found that NMCC and Frost & Gray did not have any vested rights in the McCravey-Grayback well and the Dolores (Old El Oro) well.

The company's current water rights are shown in the attached table.

                     Mining       Pit evaporation     Livestock and domestic       Total

2017 adjudication    861.84                 34.45                       6.00      902.29
2021 appeal          189.72                  0.20                       6.00      195.92
NMCC additions         0.00                  0.00                       4.00        4.00
Total              1,051.56                 34.65                      16.00    1,102.21

About Themac Resources Group Ltd.

Themac is a copper development company with a strong management team and, as of May 18, 2011, a 100-per-cent ownership interest in the Copper Flat copper-molybdenum gold-silver project in New Mexico, United States. Themac is continuing to advance the closed copper mine, Copper Flat, in Sierra county, New Mexico, toward production with innovation and a sustainable approach to mining development and production, local economic opportunities, and the best reclamation practices for its unique environment. The company is listed on the TSX Venture Exchange (ticker: MAC).

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