Mr. Harry Barr reports

METALQUEST MINING TO SELL ITS MINORITY INTEREST IN ITS MURRAY BROOK PROJECT TO CANADIAN COPPER, BATHURST MINING DISTRICT, NEW BRUNSWICK

Metalquest Mining Inc. has provided an update on the sale of Metalquest Mining's minority share of the Murray Brook polymetallic project, located in the Bathurst mining camp, New Brunswick. By mutual agreement both parties, Metalquest Mining and Canadian Copper Inc. (CCI) have entered a binding letter of intent dated Monday, Sept. 11, 2023. CCI has the option to purchase all of Metalquest's 28.2-per-cent (as of February, 2023) interest in and to the Murray Brook mining lease 252 and claim block 4925 situated in Restigouche and Northumberland counties, New Brunswick (collectively, the mining asset). CCI signed a definitive purchase agreement with Votorantim Metals Canada (VMC) on Aug. 2 to acquire VMC's majority interest in Murray Brook.

Chairman and chief executive officer Harry Barr states: "We are pleased to have entered into agreement with Canadian Copper Inc (CCI) to sell our minority interest in the Murray Brook polymetallic project. Over the term of the agreement, we will receive up to $2.3-million in cash, 2.5 million units of the company's shares and a royalty of 0.33 per cent. CCI will have the right to purchase half of the 0.33-per-cent royalty for $1-million. A final instalment of $1-million will be paid to Metalquest within 31 days of the initiation of commercial production. As a reminder, we already have an additional 0.67 per cent of a royalty from an earlier transaction. The sale of this asset will constitute a non-dilutive financing for the company and still allow us to participate in the upside of this project through the ownership of CCI shares and our royalties."

Terms of binding letter of intent:

• A non-refundable deposit of $100,000 to be paid by CCI in favour of Metalquest credited to the purchase price;
• An initial instalment of $300,000 in cash to be paid by CCI to Metalquest on or before Jan. 30, 2024. The $100,000 deposit in will be credited against the initial instalment of $300,000;
• A final instalment of $1-million within 31 days of the initiation of commercial production from a mine located on the mining asset;
• The issuance of 2.5 million CCI units to Metalquest on or before Jan. 30, 2024, subject to exchange approval and a hold period of four months and a day from the date of issuance, after which 25 per cent of the total units shall be released to Metalquest every three months, resulting in 100 per cent of the units being released to Metalquest after four quarters from the conclusion of the initial hold period, each unit consisting of one common share priced using a 30-day volume-weighted average price ended on the date immediately prior to the signing of the APA and one non-transferable warrant of CCI, with each warrant exercisable for five years from the date of issuance at an exercise price that is 150 per cent of the deemed price;
• CCI shall grant Metalquest a net smelter return royalty (NSR) of 0.33 per cent on the mining asset, provided that 50 per cent of such NSR may be repurchased by CCI at its sole discretion for $1-million at any time.

About Metalquest Mining Inc.

Metalquest Mining owns 100 per cent of Otelnuk and is further looking to develop one of the largest iron ore projects in North America. The Lac Otelnuk iron ore project is located in Quebec's Labrador Trough and is approximately 165 kilometres by air northwest of the village of Schefferville, and 1,200 km northeast of Montreal by air. Given the size and scope of the Lac Otelnuk project, management of Metalquest is working with a Toronto-based engineering company familiar with the project to create a go-forward development plan. The Quebec government has recently transferred the claims into Metalquest's name and management is accumulating a vast amount of technical data as approximately $150-million has been expended on the project to date. Going forward, one of the company's primary objectives will be to work with Wasayao Strategy Group, a Quebec-based first nations consulting firm, that will work with Metalquest to secure a memorandum of understanding (MOU) with local first nations and other stakeholders. Management is continuing to develop its in-house iron ore database to enable the company to secure an option/joint venture partner from the iron ore industry. The company is diversified with an approximately 28.2-per-cent stake in Murray Brook preliminary economic assessment-stage zinc-polymetallic deposit, situated in the famous Bathurst mining district, New Brunswick, Eastern Canada, and has entered into binding letter of intent dated Sept. 11, 2023, to sell this interest to Canadian Copper (CCI), subject to cash payments, issuance of a royalty, issuance of units in CCI and a preproduction cash payment of $1-million.

We seek Safe Harbor.