Mr. David Watkinson reports

RISE GOLD PROVIDES LITIGATION UPDATE

The U.S. District Court, Eastern District of California, has ruled in favour of Community Environmental Advocates and has granted summary judgment against Rise Gold Corp. in case No. 2:24-cv-03643. As previously disclosed in the company's regulatory filings, CEA brought suit against Rise Grass Valley Inc., a subsidiary of the company, alleging that Rise is responsible for pollutants entering into a local creek without a permit, in violation of the Clean Water Act, 33 U.S.C. 1311(a), 1365(a) and 1365(f).

The suit alleges that three discharges containing metals, including arsenic, come from water from historic Idaho-Maryland mine shafts. Rise does not own the surface drains. Nor does Rise own the top 200 vertical feet of ground where the shafts are located. The mine shafts in question were decommissioned long ago and covered up with buildings located on top of them. No sampling of water in the mine shafts has occurred below 200 feet of the surface where the alleged discharges are occurring. Rise has sampled water in the mine at the New Brunswick shaft, and no arsenic was detected. The bedrock near the alleged discharge locations points is composed of serpentinite, which contains significant quantities of naturally occurring arsenic. The near-surface bedrock is highly fractured, allowing rain and groundwater to dissolve the arsenic. The bedrock becomes more competent at depth, where the Rise mine workings are located. Rise's water samples also show that the water at depth is deoxygenated. Since acid rock drainage requires oxygen, it is unlikely that water in the mine is picking up arsenic and other metals. The alleged discharges also notably include other pollutants like E. Coli, coliform and toluene, none of which could have originated from the mine.

A summary judgment proceeding requires the judge to construe any disputed facts in favour of the non-moving party. Rise disputes the allegation that the water in the mine below 200 feet is causing any discharge that violates the Clean Water Act. Rise also notes that there is no evidence that the culvert alleged to have discharged the water is connected to the shaft. There is no evidence that the shaft, which was decommissioned a century ago, remains connected to the mine workings.

David Watkinson, chief executive officer of Rise Gold, commented: "The Clean Water Act requires an addition of pollutants to create liability. The CEA did not show nor even attempt to show that the metals being deposited into the creek originated from mining operations. The plaintiff also ignores that known pollutants that are allegedly being added could not have come from the mine. By assuming that the CEA's allegations are true, the judge misapplied the standard for summary judgment."

Rise acquired the Idaho-Maryland property and its mineral estate in 2017, and the discharges at issue were allegedly occurring prior to Rise acquiring the property and mineral estate. Rise submitted a permit application to dewater and reopen the Idaho-Marland mine in November, 2019. The project would include an NPDES permit and a water treatment plant. Nevada county denied the project's environmental impact report and conditional use permit in 2024.

Rise management and its lawyers are reviewing the ruling.

About Rise Gold Corp.

Rise Gold is an exploration-stage mining company incorporated in Nevada, United States. The company's principal asset is the historic past-producing Idaho-Maryland gold mine located in Nevada county, California, United States.

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