Mr. Warwick Smith reports

AMERICAN PACIFIC REPORTS ADDITIONAL ASSAY RESULTS FROM 2023 DRILLING AT ITS PALMER VMS PROJECT, INCLUDING 30.7 METRES AT 2.59% COPPER AND 11.21% ZINC

American Pacific Mining Corp. has released further assay results from the 2023 resource definition and geotechnical drilling program at the Palmer project. Palmer is an advanced-stage, high-grade volcanogenic massive sulphide-sulphate (VMS) deposit located in the Porcupine mining district of the Haines borough, Alaska, United States. Constantine North Inc., a subsidiary of American Pacific, is the operator for the project and the $25.5-million (U.S.) 2023 program has been financed by joint venture (JV) partner Dowa Metals & Mining Co. Ltd.

Assay results released herein are from five drill holes targeting the Southwall zone of the Palmer deposit and one geotechnical drill hole located in the RW zone. The five resource definition drill holes within the Southwall zone 1 continue to return thick intercepts of significant copper (Cu) and zinc (Zn) mineralization. As with the initial drill holes (see news release dated Oct. 18, 2023), the company continues to see mineralized intervals extending beyond the current mineral resource model, highlighting the potential for a broader mineralized envelope (see the table entitled "Significant assay results - Southwall zone 1"). Highlights include:

• 30.7 metres of 2.59 per cent Cu and 11.21 per cent Zn, including 6.53 per cent Cu over 2.9 m (CMR23-162B);
• 39.1 m of 1.44 per cent Cu, 5.87 per cent Zn and 25 per cent barite (CMR23-165);
• 18.4 m of 1.61 per cent Cu, and 14.7 m of 2.66 per cent Cu and 2.93 per cent Zn (CMR23-161).

The 2023 assay results to date have exceeded expectations in Southwall zone 1; the current resource model is well supported by the infill drill intercepts and initial interpretations also suggest the potential for additional lenses below the model, and potential extensions to the northeast and downdip of zone 1.

The company is also pleased to report significant assay results from a geotechnical drill hole (GT23-024) that intersected 10.8 m of 1.28 per cent Cu, 13.13 per cent Zn and 110.25 grams per tonne (g/t) silver (Ag) in the RW oxide zone, which is not included in the current Palmer deposit mineral resource estimate (MRE). The GT23-024 intercept is located approximately 100 m from the known MRE and the company looks forward to receiving assay results from the other geotechnical holes drilled from the UM pad to better assess the mineralization potential in this area (see the table entitled "Significant assay results - RW zone").

"We have received approximately half of the assays from this year's program and we are very pleased with the Southwall zone 1 extensions and significant Cu-Zn-Ag mineralization encountered in the RW oxide zone with one of our geotechnical drill holes," stated Warwick Smith, chief executive officer of American Pacific. "This year's work, led by Peter Mercer, has established a solid foundation and technical vision for resource expansion and derisking the project. We look forward to more assay results later this year and our continued collaboration with Dowa Metals and Mining in 2024."

Two thousand twenty-three drilling program

The 2023 diamond drill program targeted high-priority areas in two unique mineralized lenses, zone 1 and zone 2-3, which make up the Southwall zone of the Palmer deposit. Two diamond drill rigs dedicated to the resource definition drill program completed 7,791 metres in 27 drill holes (including three abandoned drill holes for 280.4 m) as well as an end-of-season exploration drill program of 466 m in two drill holes by one rig at Christmas Creek. A third diamond drill rig focused on hydro-geotechnical drilling in the immediate Palmer deposit area, with 2,365 m completed in 10 drill holes.

The company has now received assay results for 12 of the 24 sampled infill drill holes completed during the 2023 drilling program in the Southwall zones of the Palmer deposit. Additional assay results from the resource definition and geotechnical drilling programs are pending.

Geotechnical drilling -- 10 geotechnical diamond drill holes (2,365 m) were completed at three sites (Marmot, Stryker and UM drill pads) in the Palmer deposit area to provide hydrological information, including estimates for water volume and water quality. The drill core was evaluated for specific geotechnical parameters and to identify structural features. Five water monitoring wells were installed (two shallow and three deep) to complement the 12 existing water monitoring wells from previous year's programs.

Geotechnical drill hole GT23-024 (UM pad), located approximately 100 m from the RW zone mineralization, intersected semi-massive sulphide and massive barite in the RW oxide zone, with significant copper, zinc, silver, gold and barite assay results (see the table entitled "Significant assay results –- RW zone"). Oxidized parts of the RW zone typically contain negligible copper and zinc, whereas lead, gold and silver grades remain similar or higher than those of non-oxidized areas. Locally, remnant blocks or lenses of weakly oxidized to unoxidized RW zone sulphide mineralization are present in the RW oxide zone. The RW oxide zone is not included in the current resource model and represents a compelling exploration target.

Quality assurance/quality control (QA/QC)

There are strict quality assurance and quality control protocols at Palmer covering: the planning and placing of drill holes in the field; drilling and retrieving drill core; drill hole surveying; core transport to the Palmer camp; core logging, sampling and bagging of core for analysis; transport of core from site to ALS Laboratory in North Vancouver, B.C., for sample preparation and analysis; and recording and final statistical vetting of results.

Sampling procedures -- the company's QA/QC drill core sample protocol consists of collection of samples over a minimum 0.3 m interval to a maximum 1.5 m interval (depending on the lithology and style of mineralization) over the mineralized portions of the drill hole. The drill core sample is cut in half with a diamond saw, with half of the core placed in individual sealed polyurethane bags and the remaining half securely retained in the original core box for permanent storage. Drill core samples are shipped by transport truck in sealed woven plastic bags to ALS Geochemistry Analytical Lab facility in North Vancouver, B.C., for sample preparation and analysis. ALS Geochemistry meets all requirements of International Standards ISO/IEC 17025:2017 and ISO 9001:2015. ALS Global operates according to the guidelines set out in ISO/IEC Guide 25.

Gold was determined by fire-assay fusion of a 30-gram subsample with atomic absorption spectroscopy (AAS). Various metals, including silver, gold, copper, lead and zinc were analyzed by inductively-coupled plasma (ICP) atomic emission spectroscopy (AES), following multiacid digestion. The elements copper, lead and zinc are determined by ore-grade assay for samples that return values greater than 10,000 parts per million (ppm) by ICP analysis. Silver is determined by ore-grade assay for samples that return greater than 100 ppm by ICP analysis. Barium (BaO) analysis utilized lithium borate fusion into fused discs for XRF (X-ray fluorescence) analyses, with BaO converted to BaSO4 (barite) using a conversion factor of BaO times 1.52217. Density measurements were determined at the project site by Constantine personnel on cut core for each assay sample.

The company maintains a robust QA/QC program that includes the collection and analysis of duplicate samples, and the insertion of blanks and standards (certified reference material). In addition, prepared samples, sample replicates, duplicates and internal reference materials are routinely used as part of ALS Geochemistry's internal quality assurance program.

Qualified person statement

The technical information in this news release regarding the Palmer project has been reviewed and approved by Michael Vande Guchte, PGeo, vice-president of exploration for the Palmer project and a qualified person (QP) as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

About American Pacific Mining Corp.

American Pacific Mining is a precious and base metals explorer and developer focused on opportunities in the Western United States. The company has two flagship assets: the Palmer project, a volcanic massive sulphide project in Alaska, under joint venture partnership with Dowa Metals & Mining, owner of Japan's largest zinc smelter; and the Madison project, a past-producing copper-gold project in Montana partnered with Kennecott Exploration, a division of the Rio Tinto Group. For the Madison transaction, American Pacific was selected as a finalist in both 2021 and 2022 for Deal of the Year at the S&P Global Platts Global Metals Awards, an annual program that recognizes exemplary accomplishments in 16 performance categories. Also in American Pacific's asset portfolio are three high-grade precious metals projects located in key mining districts of Nevada, U.S.: the Ziggerat gold project, partnered with Centerra Gold; the Gooseberry silver-gold project; and the Tuscarora gold-silver project. The company's mission is to grow by the drill bit and by acquisition.

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