Ms. Laura Duffett reports

TRES-OR UPDATE ON BRAZIL DIAMOND PROPERTIES

Tres-Or Resources Ltd. has acquired the exclusive right to develop kimberlite diamond occurrences in the Coromandel diamond district of Minas Gerais state, Brazil. Through Tres-Or's wholly owned Brazilian subsidiary, Vaaldiam do Brasil Mineracao Ltda. (VBM), the company has entered into an exclusive development agreement with Vendome Mine Mineracao Importacao Exportacao E Pesquisa Ltda. and Antonio Ione Teixeira De Jesus (collectively referred to as Vendome) that provides Tres-Or with the exclusive right to develop kimberlite diamond deposits on the Vendome properties.

Vendome's Coromandel properties

Diamonds have been produced from the river gravels in the Coromandel district for over 200 years, and small-scale production continues to this day. The largest gem diamond ever found in Brazil, the Presidente Vargas, weighing 726.6 carats, was discovered in 1938 within the Coromandel district. Other very large gem diamonds recovered within the Coromandel district include 602 carats, 460 carats, 400.7 carats, 400.5 carats and 377.5 carats, all among the largest gem diamonds ever produced in Brazil. All the diamonds produced thus far in the Coromandel district have been produced from alluvial gravel deposits found along the rivers and drainages. These diamonds were likely eroded from kimberlite, the primary source rock of diamonds. Numerous kimberlites have been discovered in the district, but few if any have been properly sampled to evaluate their diamond content and diamond value, to determine their economic potential. The fact that large valuable diamonds continue to be recovered from gravel deposits that lie adjacent to some of the 27 kimberlites that are situated on Vendome's properties suggests that there is potential for an economic primary diamond source kimberlite deposit. The evaluation of these kimberlites will be the principal focus of Tres-Or's exploration work.

The Vendome properties comprise seven blocks of mineral licences, covering an area of roughly 29,175 hectares. Tres-Or plans to initially focus its exploration on five of the blocks where the 27 kimberlites are situated and where there has been a long history of diamond recoveries from the alluvial gravels found along the rivers that crosscut the district. Tres-Or's geologists have prioritized these five claim blocks based on the prevalence of diamond recoveries from the alluvial gravels and the proximity of these recoveries to the known kimberlite pipes.

Vendome's alluvial diamond operations, which are situated within the Vendome -- P1 block, have produced some high-value diamonds including the 2016 recovery of a large white diamond which weighed 25 carats. Vendome reported that it sold this diamond for $600,000 (U.S.), pointing to a high sales value of $24,000 (U.S.) per carat for this stone. The district also has a history of producing fancy-coloured diamonds. Vendome reported that it recovered an 8.88-carat pink diamond in 2020 which was reportedly sold for $2.5-million (U.S.) ($284,000 (U.S.) per carat). This sales price is extremely high, considering that the average sales price for diamonds produced in Brazil in 2022 was $192 (U.S.) per carat.

Summary of the terms of the Vendome agreement

Under the terms of the arrangements, Tres-Or will proceed to carry out a preliminary technical evaluation of the primary diamond occurrences, through its Brazilian subsidiary VBM, to assess the mineral potential of the 27 kimberlites on the Vendome properties. Vendome operates exclusively in secondary alluvial diamond occurrences and if these overlap with potential primary sources, Vendome would retain the right to the surficial portion of the deposit to a depth of 20 metres below surface. Tres-Or would have the exclusive right to develop and mine the kimberlite below that depth. Tres-Or's studies will include comprehensive research for evaluating potential targets through fieldwork, analysis of indicator minerals, geophysical surveys, geochemical sampling, drilling and testing primary kimberlite sources for economic potential.

In the event that studies result in favourable conclusions based on Tres-Or's criteria and the identification of a potential target for large-volume sampling (defined as sampling of kimberlite with a volume exceeding 1,000 cubic metres; bulk sample), then Vendome commits to entering into a mining rights assignment agreement for partial assignment of mining rights by submission to the government to allow for VBM to install a kimberlite processing plant to treat and recover macrodiamonds from bulk sampling operations on the kimberlite pipe.

Should Tres-Or's work produce favourable results, then a definitive agreement would be entered into within a two-year period from the commissioning of the kimberlite processing plant. Vendome shall then transfer a 100-per-cent interest in its mining rights to VBM.

As a result of the transfer of mining rights, Tres-Or has the right to market and sell 100 per cent of the diamond production derived from the kimberlite(s). Tres-Or shall pay a royalty fee of 2 per cent to Vendome. The value of the royalties corresponds to the royalty fee multiplied by the gross sales value of the diamonds sold. If special stones are produced, defined as those weighing over 10.8 carats or stones over one carat, classified as fancy colour in the sale (according to Gemological Institute of America definitions and standards for fancy-coloured diamonds), the royalty fee payable to Vendome for that specific production will be 5 per cent.

Tres-Or completed a preliminary on-site field visit to selected Vendome properties on signing of the agreement in August, 2023. The purpose of the technical team's visit was to prioritize certain kimberlites associated with the Vendome properties as well as Tres-Or's mineral claims in Minas Gerais. Fieldwork is continuing on Tres-Or's properties and prospects in Matto Grosso, Brazil.

Qualified persons

Disclosure of a scientific or technical nature related to the company's diamond project exploration was prepared under the supervision of Dr. Harrison O. Cookenboo, PhD, PGeo, an independent qualified person (as such term is defined in National Instrument 43-101), and Laura Lee Duffett, PGeo, the company's president and chief executive officer, who is a non-independent qualified person, and both have reviewed and approved the technical and scientific portions of this news release.

Further details of the priority diamond projects in Brazil will be disclosed once Tres-Or's initial fieldwork investigations are complete. An updated Tres-Or website is under construction.

About Tres-Or Resources Ltd.

Tres-Or Resources is a Canadian diamond exploration company with mineral exploration claims and diamond discoveries in Quebec and Ontario, Canada, and exploration permits for primary diamond sources in Brazil through its wholly owned subsidiary Vaaldiam do Brasil Mineracao.

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