Mr. Allen Sabet reports

MOGOTES METALS PROVIDE UPDATE ON OPTION AGREEMENT

Mogotes Metals Inc. has provided an update and clarifying disclosure regarding its option agreement dated July 29, 2025 (the effective date), with Ingenieria e Inversiones Cerro Dorado Ltd. (the optionor) and Mogotes Metals Chile SPA pursuant to which, the company was granted an option to purchase 100 per cent of certain mining concessions known as La Perla Uno a Diez, located in the municipality of Tierra Amarilla, province of Copiapo, Atacama region.

In order to exercise the option, the company shall make the following payments:

1. Cash payments in the aggregate amount of $200,000 (U.S.), payable to the optionor over a period of four years;
2. Issue an aggregate of 411,764 common shares in the capital of the company at a price of 20 cents per common share on or before July 25, 2025;
3. Issue such number of common shares to the optionor equal to $70,000 (U.S.) on or before July 29, 2026;
4. Issue such number of common shares to the optionor equal to $70,000 (U.S.) on or before July 29, 2027;
5. Issue such number of common shares to the optionor equal to $70,000 (U.S.) on or before July 29, 2028;
6. Issue such number of common shares to the optionor equal to $70,000 (U.S.) on or before July 29, 2029.

To determine the total number of common shares to be issued under the option agreement, the company shall use the Bank of Canada exchange rate for the date immediately before the common shares are to be issued, using an issue price of the greater of: (i) the closing price of the common shares on the exchange prior to the announcement of the corresponding payment; and (ii) 20 cents per common share (the minimum price).

In the event that, at the time of the announcement of the corresponding payment, the common shares are trading at a price per common share lower than the minimum price, then the number of common shares to be issued to satisfy the corresponding payment will be adjusted so that the number of common shares issued are issued at the minimum price. In the event of an adjustment resulting in the value of the common shares being less than the required payment amount, the difference between the value of the common shares issued and the corresponding payment amount may be paid in cash, or, at the option of Mogotes Chile.

About Mogotes Metals Inc.

Mogotes Metals is a mineral exploration company exploring for copper and gold in the prospective Vicuna district of Argentina and Chile. Mogotes flagship project, Filo Sur, adjoins the large Filo del Sol copper-gold-silver discovery, and is along the same north-south-trending belt as the Filo Del Sol -- Aurora and NGEx Minerals Lunahuasi and Los Helados copper-gold deposits.

We seek Safe Harbor.