Mr. Ranjeet Sundher reports

TACTICAL RESOURCES PROVIDES CORPORATE UPDATE ON FLAGSHIP PEAK PROJECT PROPERTY

Tactical Resources Corp. has provided a corporate update regarding the company's Peak project property, located 68 miles southeast of El Paso, Tex.

Key highlights:

• Established the Peak project property as its flagship asset as a result of initial findings as published in National Instrument 43-101 report published September, 2022;
• Promptly initiated a phase 1 work program to expedite preliminary economic assessment planning toward production feasibility;
• Implemented specific studies aimed at developing best practice production methods and anticipated yields;
• Commenced economic assessments to evaluate economic viability, sustainability and key drivers.

Property description

The Peak project is situated two miles southeast of the well-publicized Round Top rare earth element (REE) project co-owned by Texas Minerals Resources Corp. and USA Rare Earth LLC in a 20/80-per-cent ownership arrangement. It is situated within the Sierra Blanca quarry that allows, for a fee, access to and a right of first purchase option to tailings material on the property, together with certain rights related to development and processing of the tailing material. The Sierra Blanca quarry is currently operational and produces ballast (fill) material for the Union Pacific railway.

Company chief executive officer Ranjeet Sundher noted: "We are highly confident regarding our exciting West Texas rare earth opportunity. Once we established the Peak project property as our flagship asset, the Tactical Resources team promptly got busy and focused on working to move our phase 1 work plan ahead. We quickly established a technical focus as the key priority to advance our understanding of the project. As such, I am pleased to disclose the following outline of current and proposed activities."

Work plan outline

The various aspects of the phase 1 property work plan and integrated technical studies are outlined below:

1. Sample characterization;
2. Bench-scale leach testing;
3. Bulk-scale leach testing;
4. Permeability testing;
5. Desktop benchmarking and scoping study.

Sample characterization

Comprehensive sample characterization serves as the foundation of Tactical's phase 1 work program. Discrete samples were collected from various locations across the property and then blended to create composites representing potential feed blends for downstream processing. The purpose of the sample characterization studies is to establish an initial geometallurgical database to support current and future studies. The composite samples are being subjected to the following characterization testwork:

• Multielement analyses, base metals and fluoride;
• Multielement analyses, rare earth metals (REEs) and lithium;
• Mineralogical analyses;
• Particle-size analyses and assay-by-size analyses;
• Sulphur speciation and carbon speciation.

Bench-scale leach testing

Bottle-roll tests are being used to evaluate bench-scale leach extraction and to assess maximum extraction potential at fine particle sizes. Bottle-roll extraction tests will also be used to evaluate the suitability of the material to milling and agitated tank leaching processing scenarios. This test may also be used as a potential proxy to predict column leach test performance and to understand the particle size versus recovery relationship of the fine spectrum of the potential feed material. The bottle-roll test program is designed to understand the influence of the following metallurgical limits on leach extraction:

• Particle size;
• Leach time;
• Reagent type;
• Reagent concentration.

Bulk-scale leach testing

Column leach tests and flooded vat leach tests are being used to evaluate bulk-scale leach extraction and to assess leach recovery potential at coarse particle sizes. These tests will also be used to evaluate the suitability of the material to heap leach and vat leach processing scenarios and to generate technical data to predict potential operational outcomes. The test programs are designed to understand the influence of the following metallurgical limits on leach performance:

• Particle size;
• Leach time;
• Reagent concentration;
• Irrigation flow rate;
• Reagent consumption;
• Open circuit versus closed circuit leaching;
• Dissolution and diffusion limits;
• In series versus parallel circuit leaching.

Permeability testing

ASTM procedure D2434-22 is being used to evaluate the hydraulic conductivity characteristics of potential feed blends. The tests are also being used to evaluate the suitability of the material for irrigation leaching under stacked lift conditions and processing scenarios. The test programs are designed to understand the influence of the following limits on permeability performance:

• Particle-size distribution (coarse and fine);
• 250-micron content in feed blend;
• 500-micron content in feed blend.

Desktop benchmarking and scoping study

A desktop benchmarking and scoping study is being performed to evaluate the key value drivers and potential economic viability of the project. The purpose of the desktop study is to help highlight the potential technical scenarios and processing options that could generate the highest likelihood of yielding a potentially economically viable project and to subsequently inform future development studies. The study is designed to understand the influence of the following metrics on the project:

• Processing flow sheet;
• Metallurgical recovery;
• Preliminary process design criteria;
• Operating life;
• Production throughput;
• Product pricing;
• Capital and operating costs;
• Sensitivity analysis.

"Tactical Resources is bringing a detailed approach and level of technical rigour that such an advanced project deserves," added Mr. Sundher. "We are very pleased to advise that we have passed the crucial midpoint in our phase 1 work program and are increasingly excited by the trajectory of our phase 1 work program. We look forward to publishing conclusive results of the various tests as they become available. The market sector and investment community have long understood that project development and processing of critical elements found in rare earth mineralization encompasses a range of highly specialized, complex and multifaceted initiatives. We are fortunate to be supported by a world-class technical team and are proud of what we have achieved thus far. We believe that the value of the REE sector will continue to grow exponentially, especially as global conflicts continue to expand. With this in mind, we look forward to participating in providing an important domestic source of critical minerals while generating meaningful value for our shareholders."

Qualified person

The company's disclosure of metallurgical information in this press release has been reviewed and approved by Norman Chow, PEng, of Kemetco Research. Mr. Chow is a consultant to the company and is a qualified person as defined under the terms of National Instrument 43-101.

About Tactical Resources Corp.

Tactical is a mineral exploration and development company focused on rare earth elements based in Vancouver, B.C., and holds interests at the Lac Ducharme property located in Quebec and the Peak project in West Texas. The company is also actively involved in the development of innovative metallurgical processing techniques to further unlock REE development potential.

We seek Safe Harbor.