Mr. Ranjeet Sundher reports

TACTICAL RESOURCES ANNOUNCES SIGNIFICANT PROGRESS IN PHASE 1 TECHNICAL WORK PROGRAM AT PEAK PROJECT

Tactical Resources Corp. has provided an important update on its phase 1 technical work program at the Peak project property situated 68 miles southeast of El Paso, Tex.

Key highlights:

• Bench-scale bottle roll leach testing completed, with data analysis and reporting currently under way, demonstrating Tactical's commitment to advancing the Peak project;
• Continuing progress in remaining programs, promising further detailed insights and breakthroughs;
• Solidified stance as a key player in strengthening the U.S. rare earth supply chain, aligning with national strategic objectives.

Ranjeet Sundher, chief executive officer of Tactical, commented: "The completion and analysis of the bench-scale leach testing mark a significant milestone for Tactical Resources. Our focus on the Peak project contributes to our growth and works towards Tactical's commitment to play a vital role in reducing the nation's dependence on foreign critical mineral suppliers. As we proceed with our phase 1 work, we are continuing to explore new development opportunities and forging strategic partnerships to enhance shareholder value and establish a strong domestic rare earth supply chain."

Phase 1 technical work program overview

The phase 1 property work program is a multifaceted technical study designed to establish a robust foundation for the Peak project's development:

• Sample characterization: creating an initial geometallurgical database for continuing and future studies;
• Bench-scale leach testing: analyzing leaching processes and maximizing extraction potential at fine particle sizes;
• Bulk-scale leach testing: assessing leaching methods and extraction potential at coarser particle sizes;
• Permeability testing: exploring hydraulic conductivity characteristics of potential feed blends;
• Desktop benchmarking and scoping study: evaluating key value drivers and potential economic viability of the project.

Amid global shifts in the energy sector and heightened focus on securing domestic sources for critical minerals, Tactical's efforts at the Peak project are timely and pivotal. The International Energy Agency's report highlights the pressing need for increased rare earth supply to support the global energy transition, and Tactical is positioned to be at the forefront of this change.

Tactical's progression of the phase 1 work program is a significant stride in its commitment to bolstering the domestic rare earth supply chain. This initiative aligns with growing concerns, as expressed by U.S. energy secretary Jennifer Granholm, about the United States' reliance on foreign critical minerals suppliers, particularly China.

In response to the International Energy Agency's warning that current supply levels are insufficient to meet the demands of the energy sector transformation (as detailed in a report), Tactical is actively enhancing its efforts through its flagship Peak project. This project is poised to play a pivotal role in establishing a robust, independent supply of rare earth elements within the United States.

The company also announces that it proposes to enter into a convertible loan agreement with an arm's-length private lender in the aggregate principal amount of $200,000. The company is also pleased to announce that it has granted an aggregate of 2,395,000 stock options and 1,525,000 restricted share units pursuant to the company's omnibus incentive plan dated for reference, Aug. 28, 2023.

Convertible loan agreement

The note bears interest at a rate of 10.0 per cent per annum and matures 24 months from the date of issuance. Subject to TSX Venture Exchange approval, the principal loan amount and any accrued interest thereon are convertible into units of the company at a conversion price equal to the last closing market price of the common shares in the capital of the company on the TSX-V prior to the date of such conversion. Each unit shall be composed of one common share and one common share purchase warrant. Each warrant is exercisable into an additional common share at a price of 15 cents per warrant share for a period expiring on the date that is three years from the date of issuance.

The note and the certificate evidencing the warrants will contain blocker language restricting the conversion of the note and the exercise of the warrants, respectively, in the event such conversion or exercise results in the securityholder holding 10.0 per cent or more of the outstanding voting securities of the company.

The company may prepay the note and any accrued interest thereon at any time without penalty. The note and all securities issuable thereunder, including the common shares, warrants and warrant shares, shall be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities laws. Closing is subject to TSX-V approval.

Option and RSU grants

The options vest immediately upon grant and are exercisable into common shares at a price of 10 cents per common share for a 24-month term, expiring on March 20, 2026. The RSUs vest on March 20, 2025, and have a restriction period ending on March 20, 2027. The options and the RSUs were granted to certain directors, officers and consultants of the company.

The grant of options and RSUs is subject to the approval of the TSX Venture Exchange and applicable securities law hold periods.

Commitment to growth and value

Tactical is not only advancing its flagship project, but also actively pursuing potential project development options. The company is committed to increasing shareholder value and contributing significantly to the burgeoning sector of critical minerals.

About Tactical Resources Corp.

Tactical is a mineral exploration and development company focused on rare earth elements based in Vancouver, B.C., and the Peak project in West Texas. The company is also actively involved in the development of innovative metallurgical processing techniques to further unlock rare earth element development potential.

We seek Safe Harbor.