Mr. Christian Timmins reports

PEGASUS RESOURCES SAMPLES UP TO 4.7 G/T AU AND IDENTIFIES NEW GOLD BEARING QUARTZ VEIN AT PUNCH BOWL PROPERTY

Pegasus Resources Inc. has released the analytical results from its 2023 ground exploration program at the Punch Bowl property, Golden project, in east-central British Columbia (see news release Oct. 6, 2023).

Exploration highlights:

• Abbreviated late fall reconnaissance program included 25 rock samples, with seven having returned greater than 0.13 gram per tonne gold;

• Three samples returned values of 4.70 g/t Au, 3.87 g/t Au and 1.61 g/t Au;

• The 2023 samples extended mineralization of the gold-bearing quartz vein set to approximately 200 metres along strike;

• Located previously unsampled mineralized quartz vein(s) on McGillivray Ridge.

A late fall exploration program was carried out at the company's Punch Bowl property on Oct. 6 and 7, 2023, with a total of 25 grab samples collected. Due to the unprecedented forest fire activity across Canada in 2023, the company was limited to an abbreviated exploration program which had been scheduled for earlier in the field season.

Samples targeted pyrite-bearing quartz veins within northwest-southeast trending recessive phyllitic lenses that have historically returned elevated gold values of up to 573.7 g/t Au (Shaw, 1989). Over all, the program was successful in extending mineralization along strike of known auriferous veins, in addition to locating a previously unsampled mineralized quartz vein.

"The company is greatly encouraged by the results from the exploration campaign at the Punch Bowl property," stated Chris Timmins, president and chief executive officer of Pegasus. "The assays show that the mineralization observed within the quartz veins is relatively continuous along strike, and the newly discovered quartz vein displays the potential for multiple mineralized zones on McGillivray Ridge. We look forward to continuing to advance this project during the summer of 2024."

About the Golden project

The Golden project comprises three distinct claim groups, from south to north: Gold Mountain, Vertebrae Ridge and Punch Bowl.

Punch Bowl

The Punch Bowl property consists of three mineral claims totalling 3,079 hectares and is approximately 90 kilometres northwest of the company's Gold Mountain property and 140 kilometres northwest of Golden, B.C. The property surrounds the historic Punch Bowl showing, where discrete gold in quartz veins are hosted within quartzites and pelites of the Early Cambrian McNaughton formation.

Vertebrae Ridge

The Vertebrae Ridge property comprises four claims encompassing about 5,324 hectares (13,156 acres) roughly 81 kilometres northwest of Golden, B.C. During August, 2021, ground exploration resulted in the extension of known polymetallic mineralization trends, the confirmation of significant mineralization continuity at historically sampled locations and the discovery of the Canon Cu-Au zone. The company believes the newly discovered Canon zone may be related to a large oval, alkaline intrusion located a short distance west of the mineralized area.

Gold Mountain

The Gold Mountain property is an early-stage gold/silver property located approximately 50 kilometres northwest of Golden, B.C., just north of Highway 1. The property comprises two mineral claims encompassing 802 hectares and covering the historic Grizzly occurrence, which consists of gold and silver mineralization within polymetallic quartz/carbonate veins.

Quality assurance/quality control

All samples were collected in the field using a hammer and chisel. Locations were obtained using a hand-held Global Positioning System or tablet, with samples placed in prelabelled sample bags. Metal tags with the sample numbers and flagging tape were left at each sample location. A quality assurance/quality control protocol was incorporated into the program and included the insertion of silica blanks at a rate of approximately 15 per cent.

Samples were transported to SGS Canada's laboratory in Burnaby, B.C., for standard sample preparation (code PRP89), which includes drying at 105 degrees C, crushing to 75 per cent passing two millimetres, riffle splitting 250 grams and pulverizing to 85 per cent passing 75 microns. They were analyzed for multielement (code GE_ARM3V25) and Au by fire assay (code GE_FAA30V5).

Management cautions that prospecting surface rock samples and associated assays, as discussed herein, are selective by nature and represent a point location and, therefore, may not necessarily be fully representative of the mineralized horizon sampled.

NI 43-101 disclosure

The technical content of this news release has been reviewed and approved by Nathan Schmidt, PGeo, senior geologist for Dahrouge Geological Consulting Ltd., and a qualified person under National Instrument 43-101, who has prepared and/or reviewed the content of this press release.

Correction/clarification Oct. 26, 2023, news release should read:

Under this agreement, RCSI will provide market-making services in accordance with TSX Venture Exchange Policy 3.4. This engagement initially spans 12 months and is subject to renewal on a month-to-month basis thereafter, allowing flexibility in the company's collaboration.

In recognition of RCSI's services, Pegasus will compensate RCSI with an aggregate fee of $5,000 per month during the 12-month term, paid quarterly.

About Pegasus Resources Inc.

Pegasus Resources is a diversified junior Canadian mineral exploration company with a focus on uranium, gold and base metal properties in North America. The company is also actively pursuing the right opportunity in other resources to enhance shareholder value.

We seek Safe Harbor.