Mr. David Tafel reports

PORTOFINO EXECUTES AGREEMENT TO ACQUIRE THE DRILL-READY 2,932HA YERGO LITHIUM PROJECT BY WAY OF OPTION BUYOUT

Portofino Resources Inc. has executed a binding letter of intent (LOI) to buy out the original option agreements (Yergo binding letter agreement (Feb. 15, 2019) and the binding letter agreement addendum (May 12, 2021)).

The binding LOI ensures all rights and concession ownership for the 2,932-hectare Yergo lithium project are transferred directly to Portofino. This enables Portofino to advance its previously submitted drill permit application and proceed thereafter with an initial, planned four-hole drill program.

David Tafel, chief executive officer of Portofino, commented: "This agreement is a very positive development for Portofino as it overcomes a legal hurdle created by the previous concession owner and secures 100-per-cent direct concession ownership. Our previously planned exploration activity can now recommence after an approximate one-year delay."

The formation of lithium-bearing brines for both the Yergo lithium project and Zijin's 3Q project are likely due to the historic volcanic activity located between the projects that occurred during the same time period.

Yergo lithium project -- Catamarca, Argentina

The project is 2,932 hectares in size, controlling the entire Aparejos salar, located approximately nine kilometres from the Salar Tres Quebradas (the 3Q project), previously developed by NeoLithium Corp. and acquired by Zijin Mining for $960-million in 2022.

Portofino previously completed and reported results of a geophysical survey identifying two large aquifers within the project measuring approximately 2.3 kilometres by one kilometre and 1.8 kilometres by 2.5 kilometres (see Portofino's news release dated April 6, 2021) as well as surface sampling programs returning values up to 373 milligrams per litre lithium and has advanced the project to a drill-ready stage.

Portofino's technical team has identified four priority drill targets and a drilling contract has been finalized for a minimum of 300 metres.

Acquisition terms

The binding LOI terms include concurrent:

1. Removal of the legal injunction granted in the favour of Portofino;
2. Transfer of all rights and title to the Yergo concessions to Portofino;
3. Payment of $600,000 (U.S.) by Portofino to the concession owner.

Note: Terms of the original option agreement consisted of escalating payments totalling $500,000.

Background:

• Portofino news release dated Sept. 22, 2022 -- Portofino receives and rejects notice of termination for Yergo property agreement;
• Portofino news release dated Oct. 20, 2022 -- Portofino granted injunction against Yergo property owner by Catamarca Mining Court.

Qualified person

The technical content of this news release has been reviewed and approved by Mike Kilbourne, PGeo, who is a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. The qualified person has not completed sufficient work to verify the historic information on the properties in Argentina and neighbouring companies.

About Portofino Resources Inc.

Portofino is a Vancouver-based Canadian company focused on exploring and developing mineral resource projects in the Americas. Portofino has an opportunity to earn a majority interest in several lithium projects in Salta, Argentina, and up to 100 per cent of the Yergo lithium property in Catamarca. The properties are situated in the heart of the world-renowned Argentine Lithium Triangle and in close proximity to multiple world-class lithium projects. The company also has the right to earn 100-per-cent interest in three lithium projects in Northwestern Ontario, Canada: Allison Lake North, Greenheart Lake and McNamara Lake.

Portofino's South of Otter and Bruce Lake projects are in the historic gold mining district of Red Lake, Ont., Canada, proximal to the Dixie gold project discovered by Great Bear Resources and now owned by Kinross Gold Corp. In addition, Portofino holds three other Northwestern Ontario gold projects: the Gold Creek property, located immediately south of the historic Shebandowan mine, as well as the Sapawe West and Melema West properties, located in the rapidly developing Atikokan gold mining camp.

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