Mr. Tim McNulty reports

MAX RESOURCE COMPLETES STRATEGIC REVIEW - PLANS TO SPIN OUT IRON ORE ASSETS TO "MAX IRON BRAZIL LTD" AND SEEK LISTING ON ASX

As a result of an internal strategic review of its asset portfolio, Max Resource Corp. has determined that the optimal pathway to maximize shareholder value is to spin out its Brazilian Floralia hematite iron ore assets into a new Australian entity, Max Iron Brazil Ltd., and seek listing on the Australian Stock Exchange. In connection with the proposed spinout, Max Brazil will complete a reorganization of its current structure and complete prelisting financing directly into Max Brazil to finance the proposed transaction and to advance drilling at the Floralia project. The spinout is anticipated to complete during the first quarter of 2025. The proposed spinout is the current intention of the company, and there in no assurance that the spinout will be completed or completed on the terms currently contemplated by the company.

Following the reorganization, Max Brazil, an Australian entity, will be solely owned by the company, and following completion of the spinout, it is expected that the company will own a majority of the shares of Max Brazil. In addition, the company will manage and administer all exploration activity on the Floralia project.

The Floralia hematite project is centrally located within a prolific iron ore mining region in Minas Gerais, Brazil's largest iron-ore-producing state. Numerous iron ore buyers lie within 20 kilometres of Floralia, providing a local ready market requiring minimal transportation, upon successful exploration and development.

In 2023, Jaguar Mining conducted a program consisting of 41 channel samples collected over a 151-metre accumulated length. This resulted in the definition of a geological target estimated at 2,971,233 cubic metres to 4,496,333 cubic metres or 8,052,041 tons to 12,184,160 tons using a density of 2.71 grams per cubic centimetre at an average grade of 58 per cent iron* (predry screening).

* The source of the exploration information on the Floralia property is "Deposito Floralia Oportunidade para minerrio de ferro by Jaguar Mining Inc." The document is undated. Max Resource cautions investors the potential quantity and grade of the iron ore are conceptual in nature, and further cautions there has been insufficient exploration to define a mineral resource and Max Resource is uncertain if further exploration will result in the target being delineated as a mineral resource.

The Floralia hematite open cut is of significant size consisting of five benches rising to 48 metres and 160 metres in width, revealing plunging bands of hematite iron ore at the base, and subhorizontal banding at the top of the open cut, and is open in all directions.

2024 Floralia exploration program

The objective is to outline the subhorizontal footprint and estimated thickness of the mineralization extending beyond the current geological target of eight to 12 metric tonnes at 58 per cent Fe* (predry screening):

• High-resolution drone magnetic and lidar survey, 140-line-kilometre/50-metre spacing (awaiting interpretation);
• Channel sampling across roads cutting through the hematite iron ore mineralization (awaiting assays);
• Bulk sample for metallurgical testwork (under way);
• Scoping study (under way);
• Infill auger drilling;
• Diamond drilling.

About Max Resource Corp.

Max Resource is a mineral exploration company advancing the newly discovered district-scale wholly owned Sierra Azul copper-silver project in Colombia and its wholly owned Floralia hematite iron ore project in Brazil.

The Sierra Azul project sits along the Colombian portion of the world's largest producing copper belt (Andean belt), with world-class infrastructure and the presence of global majors (Glencore and Chevron). Max Resource has an earn-in agreement with Freeport-McMoRan Exploration Corp., a wholly owned affiliate of Freeport-McMoRan Inc. relating to the Sierra Azul project. Under the terms of the EIA, Freeport has been granted a two-stage option to acquire an up-to-80-per-cent ownership interest in the Sierra Azul project by financing cumulative expenditures of $50-million and making cash payments to Max Resource of $1.55-million. Max Resource is the operator of the initial stage. The $4.2-million (U.S.) 2024 exploration program for the Sierra Azul project is financed by Freeport.

The Floralia hematite iron ore project is located 70 kilometres southeast of Belo Horizonte, Minas Gerais, Brazil's largest iron-ore-producing state. Numerous iron ore buyers lie within 20 km of Floralia, providing a local ready market requiring minimal transportation, upon successful exploration and development. The 2024 exploration objective is to outline the subhorizontal footprint and estimated thickness of the mineralization extending beyond the 2023 estimated geological target of eight to 12 mt at 58 per cent Fe* (predry screening). The program consists of a high-resolution drone magnetic/lidar survey (140 line kilometres of 50-metre spacing), channel sampling, comment of the feasibility study, and auger and diamond drilling.

* The source of the exploration information on the Floralia property is "Deposito Floralia Oportunidade para minerrio de ferro by Jaguar Mining Inc." The document is undated. Max Resource cautions investors the potential quantity and grade of the iron ore are conceptual in nature, and further cautions there has been insufficient exploration to define a mineral resource and Max Resource is uncertain if further exploration will result in the target being delineated as a mineral resource.

Qualified person

The company's disclosure of a technical or scientific nature in this news release was reviewed and approved by Tim Henneberry, PGeo (British Columbia), a member of the Max Resource advisory board, who serves as a qualified person under the definition of National Instrument 43-101.

We seek Safe Harbor.