Mr. Nick Appleyard reports

TRISTAR GOLD STRENGTHENS CASE AND PROVIDES CORPORATE UPDATE FOR CASTELO DE SONHOS GOLD PROJECT

Tristar Gold Inc. has provided an update on activities related to the Castelo de Sonhos project, in Para state, Brazil. Tristar and State Environmental Secretariat of Para (SEMAS), the primary regulator, have both now filed their responses to the Aug. 6, 2025, announced civil public action from the federal prosecutor's office (MPF) defending the environmental licensing process that has been undertaken at the Castelo de Sonhos project. While this action is continuing, the Licenca Previa (preliminary licence or LP) for Castelo de Sonhos remains in place, with no restrictions.

Tristar will participate in a webinar on Tuesday, Sept. 30, at 2 p.m. ET.

Nick Appleyard, Tristar's president and chief executive officer, stated: "The strength of our legal case and the support of SEMAS gives us confidence that we will prevail. The strength of our case is a testament to the high quality of technical and environmental study work that was completed during permitting and all our time and efforts as custodians of this special project. Future drilling will remain in the planning stages while clarity is sought on the legal challenge and project permitting is advanced."

Legal responses to public civil action -- Castelo de Sonhos project

The summaries below reflect the central legal positions advanced by both the state of Para and Tristar, highlighting that the project remains in an early licensing phase, with further assessments to be conducted before any construction or operation begins.

State of Para's response

The state, through SEMAS, has requested denial of the court injunction, dismissal of the MPF claims and proposes judicial expert evidence to confirm the project's compliance and lack of impact on indigenous territories. The state of Para has defended the legality and technical soundness of the environmental licensing process challenged by the federal public prosecutor's office (MPF), which seeks to suspend the project's preliminary licence (LP No. 2016/2024). The state argues that:

1. Licensing process compliance: The LP was issued following all legal and technical requirements, including a robust environmental impact assessment (EIA/RIMA) aligned with CONAMA Resolution No. 01/1986 and approved by the State Environmental Council (COEMA).
2. Scope of LP: The LP only establishes locational feasibility and does not authorize construction or operations; further assessments (for example, dam safety, hydrological studies) are scheduled for later phases (construction licence LI/operating licence (LO)).
3. No impact on indigenous lands: Bau and Menkragnoti Indigenous Lands are over 10 kilometres from the project's directly affected area, exceeding the threshold in Interministerial Ordinance No. 60/2015. No hydrological, ecological or socioeconomic links justify indigenous consultation at this stage.
4. No basis for injunction: The request for urgent relief lacks legal and factual justification. There is no demonstrated harm or urgency.
5. Respect for technical authority: SEMAS, the licensing agency, has jurisdiction and expertise. MPF's unilateral reports cannot override the participatory and transparent administrative process.
6. Preservation of legal certainty: Suspending the LP would create legal instability without environmental benefit. Any necessary adjustments should occur during later licensing phases.

Tristar's response

Tristar also rejects the prosecutor's claims, defending the integrity of the licensing process and EIA/RIMA. Key arguments include:

1. EIA/RIMA adequacy: Prepared by independent experts, reviewed over two years by SEMAS and unanimously approved by COEMA. The study correctly defined areas of influence based on technical criteria.
2. No indigenous impact: Hydrological and socioeconomic studies confirm no link or impact on indigenous lands, which lie beyond the 10 km thresholds.
3. Tailings facility safety: Designed with a downstream method. Emergency and residue management plans are legally due at the LI phase, not at LP.
4. Water and air impact: Hydrological studies show strictly local and minor effects, with no mercury use and advanced treatment systems in place. Air emissions will be addressed in the LI stage.
5. Cultural and archaeological findings: Surveys found no overlap with indigenous cultural areas. Minor precolonial remains within the project site will be rescued under IPHAN oversight.
6. No urgency; reverse risks: There is no imminent threat warranting injunctive relief. On the contrary, suspending the LP would harm ongoing compliance, social and environmental programs, employment (1,600-plus jobs), and future tax revenues critical to the state of Para's development.

Webinar registration

The company will participate in a webinar on Sept. 30, 2025, at 2 p.m. ET hosted by Adelaide Capital. Questions can be submitted during the session or in advance to deborah@adcap.ca.

A replay will be made available on the Adelaide Capital YouTube channel.

About Tristar Gold Inc.

Tristar Gold is an exploration and development company focused on precious metals properties in the Americas that have the potential to become significant producing mines. The company's current flagship property is Castelo de Sonhos in Para state, Brazil. The company's shares trade on the TSX Venture Exchange under the symbol TSG and on the OTCQB under the symbol TSGZF.

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