Mr. Tim McNulty reports

MAX RESOURCE PROVIDES UPDATE ON ITS FLORALIA HEMATITE IRON ORE PROJECT, MINA GERAIS STATE, BRAZIL

Max Resource Corp. has provided an update in relation to the company's news release dated Nov. 4, 2024. The company has added a wholly owned Australian entity, Max Iron Brazil Ltd., to hold the Floralia Brazilian assets within the existing Canadian and Brazilian holding entities. The company plans to seek a listing on the Australian Securities Exchange prior to a prelisting financing directly into Max Brazil to finance the proposed transaction and to advance drilling.

Floralia hematite exploration update

Max Resource reports high-resolution drone magnetics at Floralia has identified a large anomalous zone of surficial outcropping high-grade mineralization associated with hematite/itabirite-type iron formation. The size of the anomalous area has far exceeded the approximate 160-metre-by-160-metre historic open cut to around 1,500 metres by 1,000 metres based on the drone magnetics, field activities and 58 channel samples.

Max's technical team has reviewed the new drone magnetics and channel sampling data and has significantly expanded the Floralia hematite geological target from eight million to 12 million tonnes at 58 per cent iron to 50 million to 70 million tonnes at 55 per cent to 61 per cent iron, with an additional itabirite geological target of 130 million to 170 million tonnes at 51 per cent to 55 per cent iron.

Max cautions investors the potential quantity and grade of the iron ore is conceptual in nature and further cautions there has been insufficient exploration to define a mineral resource, and Max is uncertain if further exploration will result in the target being delineated as a mineral resource.

Hematite mineralization tonnage potential estimation is based on in situ high-grade outcrops and interpreted and modelled magnetic anomalies. Density value used for the estimate is 2.8 tonnes per cubic metre. Hematite sample grades range between 55 per cent and 61 per cent iron. Itabirite mineralization tonnage potential estimation is based on in situ itabirite outcrop interpreted and modelled magnetic anomalies. Density value used for the estimate is 2.5 tonnes per cubic metre. Itabirite sample grades range between 51 per cent and 55 per cent iron. The 58 channel samples were collected for chemical analysis from in situ outcrops in previously mined slopes of industrial materials. Channel samples weighed on average 14 kilograms. Chemical analysis was performed at ALS Laboratories. Metal oxides are determined using XRF (X-ray fluorescence) analysis. Fusion disks are made with pulped samples and the addition of a borate-based flux. Max did not insert standards or blanks in the assay stream and is relying on ALS's lab quality assurance/quality control.

The Floralia hematite project is located 70 kilometres east of the city of Belo Horizonte, Minas Gerais, Brazil's largest iron ore and steel producing state. In addition, iron ore buyers lie within 20 kilometres of Floralia, providing a local ready market requiring minimal transportation, upon successful exploration and development.

The processed geophysical data from the drone survey also indicates a large portion of the magnetic anomaly lies at depth below the surface expressions of high-grade hematite oxide mineralization. Analysis indicates a highly deformed structural geological environment that is fundamental to the increase in iron ore grades and tonnages, a consequence of secondary crystallization of hematite and the development of supergene enrichment. Additionally, the geophysical survey was also crucial in revealing the potential of a secondary body covered by soil in the northwestern portion of the property. This zone was initially regarded as a minor occurrence; however, the magnetic signature and orientation recognizes it as extensions to the initial iron formation target.

The magnetometric geophysical survey utilized drones over the project area located in the Floralia region of Santa Barbara, Minas Gerais, Brazil, within the Quadrilatero Ferrifero region. The geophysical survey magnetometric maps were generated with multiples filters, along with a 3-D inversion that provided a high-resolution block model and isovalue surfaces from the interpreted source of the anomalies. These data have been fundamental in confirming the principal target area and the true potential of the Floralia high-grade hematite project.

The channel sampling across road cuts is now complete with assays pending. The next step is auger and diamond drilling.

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.

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.

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 has an earn-in agreement (EIA) 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 up to an 80-per-cent ownership interest in the Sierra Azul project by financing cumulative expenditures of $50-million and making cash payments to Max of $1.55-million. Max 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 company also owns the Floralia hematite iron ore project, located 70 kilometres southeast of Belo Horizonte, Minas Gerais, Brazil's largest iron-ore-producing state. The company has added an Australian entity, Max Iron Brazil Ltd., to hold the Floralia Brazilian assets through the existing Canadian and Brazilian holding entities. The company plans to seek listing on the ASX prior to a prelisting financing directly into Max Brazil to finance the proposed transaction and to advance drilling at the Floralia project.

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