Mr. Tim McNulty reports

MAX RESOURCE ANNOUNCES PRIVATE PLACEMENT FUNDING IN AUSTRALIAN SUBSIDIARY

Further to Max Resource Corp.'s news releases on Dec. 12, 2024, and Jan. 2, 2025, Max Iron Brazil Ltd. (Max Brazil), formerly a wholly owned subsidiary of the company, for the intended non-brokered private placement, has issued 21,264,000 ordinary shares in the capital of Max Brazil at a price of 10 Australian cents per ordinary share for aggregate gross proceeds $2,126,400 (Australian). Following the completion of the issue, the company owns approximately 81 per cent of the issued and outstanding ordinary shares.

The net proceeds of the offering will be used for the advancement of the Floralia DSO (direct shipping ore) hematite project, located 67 kilometres east of Belo Horizonte, Minas Gerais, Brazil, and for general working capital purposes. There were no finders' fees paid in connection with the completion of the offering.

Max Brazil has now commenced inaugural drill programs at its Floralia DSO hematite project, consisting of approximately 1,200 metres of diamond and 800 metres by a mobile power auger rig.

About Max Resource Corp.

The company's wholly owned 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. (Freeport), 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 (Canadian) and making cash payments to Max of $1.55-million (Canadian). 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's Floralia DSO hematite iron ore project is located 67 kilometres east of Belo Horizonte, Minas Gerais, Brazil's largest iron ore and steel producing state. Max's technical team has significantly expanded the Floralia hematite geological target from eight million to 12 million tonnes at 58 per cent iron (Fe) to 50 million to 70 million tonnes at 55 per cent to 61 per cent Fe, with an additional hematite/itabirite geological target of 130 million to 170 million tonnes at 51 per cent to 55 per cent Fe.

The company has added an Australian entity, Max Brazil, to hold the Floralia DSO hematite project through the existing Canadian and Brazilian holding entities. Max Brazil plans to seek listing on the Australian Securities Exchange.

Max 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 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 and 61 per cent Fe. Hematite/itabirite mineralization tonnage potential estimation is based on in situ hematite/itabirite outcrop interpreted and modelled magnetic anomalies. Density value used for the estimate is 2.5 tonnes per cubic metre. Hematite/itabirite sample grades range between 51 and 55 per cent Fe. The 58 channel samples were collected for chemical analysis from in situ outcrops in previously mined slopes of industrial materials. Channel samples weighed in average 14 kilograms. Chemical analysis was performed at ALS Laboratories. Metal oxides are determined using XRF 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 QA/QC (quality assurance/quality control).

We seek Safe Harbor.