Mr. David Brett reports

PACIFIC BAY ANNOUNCES SALE OF SPHINX PROPERTY, CRITICAL MINERALS IMPACT AT HASKINS-REED AND FINANCING UPDATE

Pacific Bay Minerals Ltd. has provided an update on several corporate initiatives, including the sale of its 100-per-cent-owed Sphinx property north of Dease Lake, amendments by the recent government of Canada budget to include tungsten and bismuth as critical minerals, which positively impact its Haskin-Reed property, the initiation of a work program at the Weaver gold project, and the receipt of an extension from the TSX Venture Exchange with respect to its previously announced private placement.

Financing update

The company is pleased to report it has received an extension from the TSX Venture Exchange until Dec. 12, 2025, to close the company's previously announced non-brokered private placement offering of up to two million flow-through units at 10 cents per unit for gross proceeds of $200,000 and 1.5 million non-flow-through units at seven cents per unit for gross proceeds of $105,000, totalling $305,000 in gross proceeds. The financing has received conditional approval from the TSX Venture Exchange but remains subject to final acceptance.

Each FT unit 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.

Each NFT unit 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 B.C. critical mineral projects, and such expenditures will 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.

Haskins-Reed critical mineral project update

The company was pleased to learn that the recent policy and infrastructure developments made by government of Canada 2025 budget announcement revealed that both tungsten and bismuth have been added to the list of critical minerals that qualify for the Canadian critical mineral exploration tax credit. These initiatives, spanning fiscal incentives announced in the 2025 federal budget, the launch of the G7 Critical Minerals Alliance and provincial investments in transmission infrastructure in British Columbia, highlight the evolving landscape for responsible development of projects such as the company's 100-per-cent-owned Haskin-Reed property.

Two thousand eleven drilling at the Della B zone (DH-BZ11-10) intercepted 102.59 grams per tonne silver, 0.52 per cent copper, 4.96 per cent zinc and 0.29 per cent bismuth over 13.95 metres. High-grade tungsten skarns at the Mount Reed prospect returned historical drill values of 2.01 per cent WO3 over 3.3 metres, 0.37 per cent WO3 over 5.18 metres and 0.17 per cent WO3 over 54.8 metres.

The company is currently developing a significantly expanded exploration program and budget for 2026 exploration at Haskins-Reed, subject to permitting and financing.

"We're pleased that tungsten and bismuth exploration has been further incentivized by the government of Canada," said Pacific Bay chairman David Brett. "We also welcome the increased focus on critical minerals exploration in the northwest of British Columbia and that significant new infrastructure to support mining is being contemplated."

Program planned for Weaver gold project in Southern British Columbia

The company plans to mobilize crews to Pacific Bay's 100-per-cent-owned, high-grade Weaver gold property near Harrison Lake in Southern B.C. in the near future.

The Weaver gold property is considered a high-grade, underground gold target with potential to host volcanogenic massive sulphide deposits. Historic drilling by the company at Weaver gold in 2019 returned two g/t gold and 13.71 g/t silver over 4.61 metres.

Historic work at Weaver gold includes underground workings including a number of historic drilling campaigns which encountered shear-hosted gold-silver-quartz-carbonate-vein mineralization with encouraging gold grades.

A 1996 seven-hole diamond drilling program intersected:

• 8.61 grams per tonne gold and 46.2 grams per tonne silver over 3.05 metres;
• 4.68 grams per tonne gold and 383.7 grams per tonne silver over 6.10 metres.

An earlier drill program in 1975 yielded some significant intercepts, including:

• 2.13 metres of 11.79 grams per tonne gold and 44.57 grams per tonne silver;
• 2.13 metres of 6.86 grams per tonne gold and 27.08 grams per tonne silver;
• 5.18 metres of 4.14 grams per tonne gold and 25.03 grams per tonne silver;
• 1.52 metres of 16.6 grams per tonne gold and 91.88 grams per tonne silver.

Note: The drill intercepts in this news release are core lengths only as the geometry of the mineralized structure has not yet been definitively determined.

Sphinx rare earth claims sold

The company is pleased to announce it has sold 100 per cent of certain mineral claims comprising the Sphinx property located north of Dease Lake in northwestern B.C. Pursuant to the purchase agreement, the company received $100,000 in cash from an arm's-length individual. Recent exploration by the company, including soil and silt samples, had yielded inconclusive results.

Pereira-Velho property update

The company has not yet been able to conclude a definitive agreement with respect to the Pereira-Velho gold property in Alagoas state, Brazil, nor secure the concurrent financing contemplated by the proposed option agreement but remains hopeful that the transaction will be achievable in the future. The company expects to be in a position to provide a more definitive update in early 2026.

The technical disclosures in this news release were reviewed and approved by David Bridge, PGeo, a qualified person as defined by National Instrument 43-101.

We seek Safe Harbor.