Mr. Fredy Salazar reports

SALAZAR RESOURCES WELCOMES REFORM EXEMPTING EXPLORATION FROM THE MINING OVERSIGHT AND CONTROL FEE AND STRENGTHENING ECUADOR'S COMPETITIVENESS

The government of Ecuador, through the Board of the Mining Regulation and Control Agency (ARCOM), has issued resolution No. ARcom-006/26, amending the Mining Oversight and Control Fee regime that has been in effect since 2025.

The reform represents a significant step forward for the sector: projects that remain in the exploration stage are now exempt from the fee. In addition, for the 2026 fiscal year, the fee established under the previous resolution will not be applied.

With this decision, Ecuador sends a clear signal that it seeks to incentivize the mining industry and, in particular, investment in exploration -- the stage that underpins the discovery of new deposits and the future of the sector. By removing an economic burden on the phases prior to production, the reform brings the country closer to the best practices of leading mining jurisdictions worldwide and reinforces its competitiveness to attract international risk capital. This will allow companies to allocate greater resources to prospecting, exploration, employment generation and investment in local communities.

In its news release dated June 19, 2025, Salazar had cautioned that the then-proposed fee would impose an unsustainable burden on exploration companies and would affect Ecuador's attractiveness as a destination for mineral investment. The new framework addresses many of the concerns raised by the exploration sector and recognizes the importance of maintaining a competitive environment for the discovery of new mineral deposits.

Fredy Salazar, executive president of Salazar Resources, commented: "We welcome this reform, which represents a positive step for Ecuador's exploration-focused mining industry -- and especially for Salazar Resources, a company with significant projects currently in the exploration stage. It will enable us to generate investment, employment, growth and development in the communities near our projects."

Salazar Resources reaffirms its commitment to working collaboratively with government authorities, industry associations and local stakeholders to advance the development of a modern, responsible, and sustainable mining industry that contributes to Ecuador's economic and social growth.

About Salazar Resources Ltd.

Salazar Resources is a Canadian junior exploration company focused on the discovery and development of mineral deposits in Ecuador. The company's strategy combines in-house geological expertise with a disciplined, systematic approach to project generation and advancement.

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