Mr. Christian Timmins reports

PEGASUS RESOURCES 2024 OUTLOOK

Pegasus Resources Inc. is looking back on a year of accomplishments which sets the stage for an even more promising future in 2024. Under the leadership of Christian Timmins, chief executive officer, and the Pegasus team, the company has embraced a strategic vision that has significantly impacted its operational efficiency, financial sustainability and regional positioning.

Highlights of 2023:

1. Cost-cutting measures and investor confidence: Mr. Timmins, the new CEO, implemented effective cost-cutting measures, enhancing financial efficiency, and boosting investor awareness and sentiment, laying a solid foundation for Pegasus's future endeavours.
2. Permits for Pine Channel: Pegasus obtained crucial permits for the Athabasca basin property, Pine Channel. This achievement opens doors to valuable exploration opportunities, showcasing the company's commitment to responsible resource development.
3. Strategic land expansion: Recognizing growth potential, Mr. Timmins and the company seized an opportunity to stake additional land at its 100-per-cent-owned Energy Sands project in Utah. This strategic move increased the company's land package by 160 per cent, solidifying the company's position in the United States uranium sector.
4. Golden project success: A comprehensive work program at the Golden project in British Columbia yielded substantial results, expanding the company's understanding of the property and securing its good standing until fall 2025. Mr. Timmins's leadership has played a pivotal role in the success of this initiative.

Looking ahead to 2024

As Pegasus enters 2024, it stands poised to capitalize on the growing demand for uranium, especially in the United States. The recent announcement by the Department of Energy (DOE) regarding a final request for proposals (RFP) for uranium enrichment services and U.S.-sourced uranium supplies aligns with the company's commitment to exploring and discovering a commercial domestic supply of uranium for the North American markets.

The company's primary focus for the first half of 2024 is propelling its Utah-based past-producing Energy Sands project to drill-ready status by the end of Q2. The company will kick off the new year with a comprehensive mapping and sampling program, with these data being used to delineate drill targets leading up to drill permit application. This strategic move aligns with the DOE's emphasis on domestically sourced uranium, positioning Pegasus as a key contributor to the burgeoning uranium market.

Acknowledging challenges posed by unusually warm weather in Saskatchewan, Pegasus has postponed a proposed drill program on the Pine Channel property. Instead, the company is actively exploring a geophysical program to deepen its understanding of Pine Channel, ensuring the property's good standing and demonstrating the company's commitment to responsible resource management.

While the Golden project is not the current top priority, its potential is recognized, and Pegasus is evaluating the feasibility of a follow-up initiative as budgets allow.

Pegasus remains agile in the dynamic resource sector, committed to navigating challenges while seizing strategic opportunities. The company expresses gratitude to its investors for their continuing support and confidence as Pegasus embarks on this exciting journey in 2024.

Clarification: Dec. 28, 2023, news release. Finder's warrant terms: For 103,031 finder's warrants, each warrant entitles the holder to purchase one common share at the price of 20 cents per share warrant for a period of two years from the date of issuance. For 60,900 finder's warrants, each warrant entitles the holder to purchase one common share at the price of 28 cents per share warrant for a period of two years from the date of issuance.

About Pegasus Resources Inc.

Pegasus Resources is a diversified junior Canadian mineral exploration company with a primary focus on uranium, with exposure to 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.