Dr. Tony Harwood reports

MONTERO COMMENTS ON SHARE PRICE MOVE

Montero Mining and Exploration Ltd. has provided an update on the move in Montero's share price. Montero has a fully financed arbitration case under way for the expropriation of its Wigu Hill rare earth element project against the United Republic of Tanzania. The hearing on the merits in Montero's arbitration proceedings will be held in December, 2023, in Washington, D.C. On July 14, 2023, Australian Securities Exchange-listed Indiana Resources Ltd. was awarded $109.5-million (U.S.) in its International Centre for Settlement of Investments Disputes (ICSID) arbitration case against Tanzania, in addition to an order for Tanzania to repay $3,859,161 (U.S.) in legal costs and expenses. Indiana's arbitration proceedings were concluded in early February, 2023.

Indiana previously held the Ntaka Hill nickel project under retention licence, which was unlawfully expropriated by Tanzania, in breach of the Bilateral Investment Treaty (BIT) between the United Kingdom and Tanzania. Details of the judgement can be found in Indiana's news release.

Montero's dispute with Tanzania is also subject to ICSID arbitration. Montero seeks compensation in excess of $90-million for the loss of its investment in Tanzania (including interest which continues to accrue). Montero is also seeking reimbursement of its arbitration costs and fees by Tanzania. The damages claimed are for the unlawful expropriation of Montero's investment in Tanzania, which is in breach of the BIT between Canada and Tanzania.

Montero is represented by Timothy Foden of Boies Schiller Flexner LLP and Thierry Lauriol of Jeantet AARP. Mr. Foden is leading the ICSID arbitration for Montero and represented Indiana in its successful case. Montero has retained Dr. Neal Rigby of SRK Consulting (USA) Inc. as quantum expert, with full dispute financing secured from Omni Bridgeway, a leading global dispute financier.

Dr. Tony Harwood, president and chief executive officer of Montero, commented: "I am pleased that the ICSID tribunal in the case of Indiana versus Tanzania has recognized the damage done to Indiana's shareholders, investors and companies after Tanzania unlawfully expropriated retention licences. Value is created by exploration and development using investor funds and professional expertise that companies (Montero) legitimately brought to Tanzania. Montero is seeking to recover its investment and damages due to the loss of its Wigu Hill retention licences. The arbitration hearings will be held in December, 2023, after which an award will be rendered."

The ICSID convention has been ratified by 158 states, including Tanzania. An award issued by an ICSID tribunal is enforceable in any one of those 158 member states as if it were a judgment of one of their own courts. Partly because of this, states often comply voluntarily with the payment terms of such awards.

Background to claims

Montero commenced exploration activities on the Wigu Hill rare earth element project in March, 2008, under a prospecting licence and spent over $17-million on exploration works in the discovery and development of the project. In 2015, a five-year retention licence was awarded by the Tanzanian government on the property. This retention licence was expropriated by the Tanzanian government in 2019, when all previously issued retention licences, which had been cancelled by the Mining (Local Content) Regulations 2018, were put to tender. Montero has made repeated attempts to reach an amicable solution with the government of Tanzania, with no success since that date. Montero filed a request for arbitration with the ICSID on Jan. 8, 2021. On Feb. 9, 2021, ICSID registered Montero's request for the institution of arbitration proceedings to resolve the illegal expropriation matter. The arbitral tribunal was constituted on Nov. 18, 2021, with the appointment of the president, and appointees from Montero and Tanzania.

Qualified person statement

This press release was reviewed and approved by Mike Evans, MSc, PrSciNat, a qualified person for the purpose of National Instrument 43-101. It has also been reviewed by Thierry Lauriol, avocat a la cour (Paris, France), and Mr. Foden.

Disclaimer

While the facts and the grounds of the Indiana case are similar to those of Montero's, the cases are heard by different tribunals, which does not guarantee the same outcome for Montero's case.

About Montero Mining and Exploration Ltd.

Montero is a junior exploration company focused on finding, exploring and advancing globally significant gold, silver and base metal deposits in Chile. Montero's board of directors and management have an impressive record of successfully discovering and advancing precious metal and copper projects.

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