Mr. David Brett reports

PACIFIC BAY ANNOUNCES NON-BROKERED FINANCING

Pacific Bay Minerals Ltd. has arranged a non-brokered private placement offering of up to two million flow-through (FT) units at 10 cents per unit, for gross proceeds of $200,000, and 1.5 million non-flow-through (NFT) units at seven cents per unit, for gross proceeds of $105,000, totalling $305,000 in gross proceeds. The financing is subject to the acceptance of the TSX Venture Exchange.

The FT units will consist of one flow-through share and one-half warrant to purchase one non-flow-through share at 15 cents for a period of one year.

The NFT units will consist of one common share and one full warrant to purchase one common share at 10 cents for a period of one year.

The proceeds of the FT units will be used to explore the company's British Columbia critical minerals projects and such expenditures with qualify as critical mineral flow-through mining expenditures within the meaning of the Canadian Income Tax Act.

The NFT unit proceeds will be used for general working capital purposes.

The company reserves the ability to pay a finder's fee of up to 8 per cent of the gross proceeds of the financing.

Brazil update

The company also announces that Pacific Bay's $2-million private placement announced July 2, 2025, will not be proceeding. The July 2 financing was arranged in connection with the acquisition of the Pereira-Velho gold project in Alagoas state, Brazil. The company remains fully committed to closing the acquisition of Pereira-Velho and expects to announce an alternative financing in the future to achieve this goal. The acquisition of Pereira-Velho was deemed a fundamental acquisition by the exchange, requiring detailed review and approval of the transaction. The preparation of a National Instrument 43-101 technical report on Pereira-Velho was an exchange requirement, and this report has been prepared and filed on SEDAR+, but remains subject to further review and approval by the exchange. The company will update and advise investors if and when a definitive agreement regarding Pereira-Velho is executed with the vendor, and other material information when it becomes available.

None of the proceeds of the current financing will be expended on the Pereira-Velho project.

We seek Safe Harbor.