Mr. Andrew Maloney reports

THEMAC RESOURCES GROUP LIMITED ANNOUNCES NEW MEXICO STATE ENGINEER'S DECISION ON SANTA TERESA WATER TRANSFER

Themac Resources Group Ltd. has provided the following update in relation to its Copper Flat project and application for the transfer of water rights.

In April, 2019, an agreement to lease 2,400 acre-feet of existing Santa Teresa water rights for use at the Copper Flat mine by the company's wholly owned New Mexico Copper Corp. was entered into. An application to change the point of diversion to the Copper Flat production wells and the place and purpose of use to the Copper Flat mine was filed in August, 2019, with the New Mexico State Engineer's Office, and an administrative hearing was held in August, 2023.

The New Mexico state engineer has handed down her decision denying the application. The company is currently reviewing the decision and considering its next steps in the process.

Since the application was originally filed with the NMSEO, the company has been investigating alternative options for more economically favourable and sustainable water management systems for implementation at the Copper Flat project that would alleviate the need to access any of the Santa Teresa water rights. Those options include dry stack tailings technology, allowing for safer and more sustainable waste management at the Copper Flat site. The feasibility of the dry stack technology is at an advanced stage of evaluation by the company, and is subject to continuing further detailed analysis in respect of both the implementation of the technology and permitting.

We seek Safe Harbor.