Mr. Reagan Glazier reports

PACIFIC BAY MINERALS LTD FILES TECHNICAL REPORT AND SIGNS EXTENSION ON LETTER OF INTENT TO ACQUIRE PEREIRA-VELHO GOLD PROPERTY IN ALAGOAS STATE, BRAZIL

Pacific Bay Minerals Ltd. has signed an extension to the previously announced non-binding letter of intent (LOI) with Appian Capital Advisory LLP to acquire a 100-per-cent interest in the Pereira Velho gold project, located in Alagoas state, Brazil. The acquisition includes 11 mineral claims totalling 14,596 hectares. The company has also filed the related National Instrument 43-101 technical report related to the Pereira-Velho gold project.

The project

The Pereira Velho project lies in inland Alagoas state, an emerging gold and base metal jurisdiction in northeastern Brazil, where copper ores and concentrates rank as the state's second-largest export. The project is strategically positioned just 25 kilometres from the Serrote copper mine, which was recently acquired by Baiyin Nonferrous for $420-million (U.S.), underscoring the district's development potential and growing strategic importance.

With paved highway access, grid power nearby and proximity to the city of Arapiraca (population of 230,000-plus), Pereira Velho benefits from infrastructure and a skilled local work force that supports cost-effective exploration and development.

Established mineralization in a large, underexplored land package

The 14,596-hectare land position hosts a more-than-2.5-kilometre gold-in-soil anomaly and has seen 6,363 metres of diamond drilling across 47 holes from 2018 to 2022. Historical results confirmed widespread, near-surface gold mineralization hosted within fractured quartzite and gneiss units.

This work underpinned a historical resource estimate filed with the Brazilian National Mining Agency (ANM) in 2023. The estimate includes 23,700 ounces (1,156,000 tonnes at 0.64 gram per tonne (g/t) gold (Au)) of gold in the measured category, 44,200 ounces (oz) of gold (969,000 tonnes at 0.66 g/t Au) in the indicated category and 40,500 ounces (2,098,000 tones at 0.6 g/t Au) in the inferred category in oxidized materia, and highlights the presence of free gold, supporting the potential for low-cost, open-pit, heap-leach-style development.

This historical estimate was prepared and filed with the Brazilian National Mining Agency (ANM) in 2023 by Geologica Consultoria Ltda., in a report titled "Relatorio Final de Pesquisa -- Projeto Pereira Velho" (Geologica, 2023).

The historical estimate used a cut-off grade of 0.3 g/t Au for oxide material and 0.4 g/t Au for sulphide, based on gold price assumptions of $1,400 (U.S.) per oz, and preliminary metallurgical recovery factors of 80 per cent for oxide and 60 per cent for sulphide zones. The resource categories used in the historical estimate, namely measured, indicated and inferred, generally correspond with definitions outlined by the Brazilian ANM. However, these categories may not be directly comparable with those defined by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) under NI 43-101 standards and a qualified person has not validated their equivalency. To the best of the company's knowledge, no more recent resource estimate has been prepared for the Pereira Velho project since the 2023 filing with ANM.

Metallurgical testing highlights

Preliminary metallurgical testing conducted at SGS Geosol laboratories on oxidized mineralization from the Pereira Velho project yielded highly encouraging gold recoveries. Column leach tests returned 51.1 per cent (one-inch crush), 79.2 per cent (one-half-inch crush) and up to 94.8 per cent (three-millimetre crush) over a 31-day period. These results confirm the potential for low-cost, conventional heap leach processing, particularly in the oxide domain, which represents nearly 90 per cent of the total historical ounces. In contrast, sulphide-rich zones displayed refractory behaviour, underscoring the strategic importance of prioritizing oxide material for near-term development.

Next steps

Pacific Bay is preparing for a focused exploration and development program at Pereira Velho in 2025. The company plans to initiate a confirmatory and stepout drilling campaign aimed at validating historical results and expanding the known mineralized envelope along strike and at depth. In parallel, additional metallurgical optimization studies will be conducted to refine recovery parameters, particularly for heap leach processing of oxidized material. These efforts are designed to support the publication of a maiden NI 43-101 compliant resource estimate and to lay the groundwork for a preliminary economic assessment to evaluate potential project development scenarios.

"With gold prices continuing their upward trajectory and investor appetite returning to the junior resource sector, Pacific Bay is uniquely positioned to unlock significant near-term value at Pereira Velho," stated Reagan Glazier, chief executive officer and president of Pacific Bay Minerals. "This is a near-surface, oxide-dominant gold system with excellent infrastructure, strong initial metallurgy and a historical resource already in hand, and it remains wide open for expansion. We believe this combination gives us a clear runway for discovery, development and value creation in a tightening gold market."

Notes to investors

Historical exploration data and analytical results featured in this news release were taken from assessment reports filed with the department of Mines Brazil. Neither Pacific Bay nor a qualified person has verified the historical sampling, analytical and test data contained in this news release. Historical work and results include a gold-in-soil anomaly across some of the 11 claims totalling 14,596 hectares, drill testing and an initial phase of metallurgical testing. The company is providing these historical data for informational purposes only, and gives no assurance as to their reliability and relevance to the company's potential exploration program on the project. The company has not completed any quality assurance program or applied quality control measures to the historical data.

Investors are cautioned that there can be no assurance that the parties to the LOI will come to agreement and execute a binding, definitive agreement, or that the acquisition will be completed as proposed or at all. In addition, the company can give no assurances at this time that the project will contain economic-grade mineralization and reserves that would be required for any profitable mining or will fulfill the company's business development goals described herein. Trading in the securities of the company should be considered highly speculative.

The company will issue additional news releases related to execution of definitive documentation in respect of the acquisition and other material information as it becomes available.

All technical information, including the historical resource, can be found in the NI 43-101 report. A copy of the NI 43-101 technical report can be found on the company's website or SEDAR+. The NI 43-101 report was completed by Rodrigo Mello, of Brazil, an independent and qualified person as defined in NI 43-101.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by David Bridge, PGeo, a consultant of the company, who is a qualified person as defined in NI 43-101.

About Pacific Bay Minerals Ltd.

Pacific Bay, a Canadian-based junior mineral exploration company, currently has a portfolio of properties in British Columbia, including the Haskins Reed and Sphinx Mountain rare earth element project. Focus will be directed to actively exploring and developing all three projects.

About Appian Capital Advisory LLP

Appian Capital Advisory is the investment adviser to the Appian natural resources funds, which are long-term, value-focused funds that invest in metals, mining and adjacent industries.

Appian is a leading investment adviser with global experience across South America, North America, Australia and Africa. It has a successful record of supporting companies in metals, mining and adjacent industries to achieve their development targets, with a global operating portfolio overseeing nearly 5,000 employees.

Appian has a global team of 85 experienced professionals with presences in London, New York, Hong Kong, Toronto, Vancouver, Lima, Belo Horizonte, Montreal, Dubai, Johannesburg and Perth.

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