Mr. Marcel Robillard reports

PUMA EXPLORATION UPDATES ON COPPER TRANSACTION WITH MELIUS METALS

Puma Exploration Inc. has provided an update on progress on the transaction with Melius Metals Corp. As was stated in the press release of July 6, 2021, the main objective of the transaction is to unlock value from its copper property portfolio through Melius's option to acquire all Puma's copper exploration and development projects.

Transaction summary

Puma granted to Melius the option to acquire 100 per cent in its copper projects in consideration of $3.5-million payable by the issuance of an initial 12 million Melius shares, of which up to six million will be distributed to Puma's shareholders in Q1 2022. The remaining $2.3 million is payable in cash or in Melius shares over a period of three years. Puma's commitments for the Chester property was also assumed by Melius (see press release July 6, 2021). As of Nov. 24, 2021, the Chester option has been executed and the mining claims have been transferred to Puma.

Progress achieved to date

• Melius appointed Simon Quick as chief executive officer;
• Melius completed qualifying technical reports (National Instrument 43-101) on Chester and Turgeon as required for public listing purposes;
• Melius closed private placement financings for a total of $1.5-million;
• Launch of a 2,000-metre drilling program on Chester, execution of a final $100,000 cash payment and acquisition by Puma of a 100-per-cent interest on Chester;
• At Puma's annual and special meeting of shareholders, approval of resolutions approving the sale of the copper assets reduction of stated capital.

Considering all the achievements that Melius has made so far, Puma has agreed to extend the satisfaction date from Oct. 31, 2021, to Jan. 31, 2022, to file a preliminary prospectus and the current deadline to be listed on a Canadian Exchange to be extended to April 30, 2022, from March 1, 2022.

Currently, Melius is finalizing the audited financial statement to be included in the preliminary prospectus and is proceeding with an additional round of financing, which is expected to close in the next few weeks. Melius is currently preparing its preliminary prospectus with the intention of listing shares on the Canadian Stock Exchange.

As a result of this additional round of financing by Melius, Puma intends to hold a special meeting of shareholders in January, 2022, to seek shareholder approval for an increase in reduction of stated capital already approved at the previously held annual and special meeting, from $600,000 to a maximum of $2.1-million.

The objective is to reduce any potential fiscal impact on Puma's shareholders considering anticipated changes to the listing price of Melius shares. More details about the date of the special meeting and the record date will be provided shortly.

Appointment of Mr. Quick as chief executive officer of Melius

Mr. Quick has more than 12 years as a well-regarded mining leader, with a record spanning the United States, Mexico, Argentina and Canada. His specific experience includes early stage permitting, project development through to design engineering, and construction. Mr. Quick joins Melius from McEwen Mining Inc. where he was vice-president of projects. He has an honours degree in economics from Bishop's University and an executive MBA from the Kellogg School of Management at Northwestern University.

Exploration update at Chester copper deposit

The new drilling program at Chester has commenced and consists of approximately 40 drill holes totalling approximately 2,000 metres. The Chester copper deposit contains three known zones: the Central zone, the East zone and the West zone (Copper Stringer), which are all located near surface.

There are three strategic objectives for this drilling campaign:

1. Validate historical resource and geological model for the three primary zones, Central, East and West (Copper Stringer), all located near surface;
2. Test resource gaps between the Central and East zone;
3. Each hole will also test for presence of gold and silver mineralization given historical drilling did not assay for these minerals.

Significant previous drill results at Chester:

West zone (surface to 50 m)                        Central zone (surface to 50 m)
     
4.8 per cent Cu over 20.3 m     10.8 per cent Zn plus 4.5 per cent Pb over 5.6 m
3.4 per cent Cu over 25.0 m      7.4 per cent Zn plus 2.3 per cent Pb over 6.1 m 
6 per cent Cu over 13.1 m        8 per cent Zn plus 3.9 per cent Pb over seven m 
8 per cent Cu over 5.2 m         8.5 per cent Zn plus 4.0 per cent Pb over 7.9 m 
4.9 per cent Cu over 14.2 m       7 per cent Zn plus 2.6 per cent Pb over 15.6 m

Qualified person

Dominique Gagne, PGeo, independent qualified person as defined by Canadian National Instrument 43-101 standards, has reviewed and approved the geological information reported in this news release.

About Puma Exploration Inc.

Puma Exploration is a Canadian-based mineral exploration company with precious and base metals projects in early to advanced stages located in the famous Bathurst mining camp in New Brunswick, Canada. Great efforts will be made by the company in the coming years to deploy its DEAR strategy (development, exploration, acquisition and royalties) in order to generate maximum value for shareholders with low shares dilution.

We seek Safe Harbor.