Mr. Warwick Smith reports

AMERICAN PACIFIC REGAINS 100% INTEREST IN THE MADISON COPPER-GOLD MINE PROJECT IN MONTANA, USA

Kennecott Exploration Company, a subsidiary of the Rio Tinto Group, in collaboration with American Pacific Mining Corp., has agreed to discontinue the 11-year Madison earn-in agreement to acquire a 70-per-cent interest in American Pacific's Madison mine project. American Pacific would like to thank the regional Kennecott team for its collaborative approach at Madison over the years. The company has regained 100-per-cent ownership and control of Madison, which now becomes the company's lead solely owned property.

Warwick Smith, American Pacific's chief executive officer, stated:

"I'd like to start by emphasizing what an excellent partner Rio Tinto has been. We would have naturally liked to see the partnership continue with Rio funding exploration more aggressively, but given the dynamics of the underlying option term and Rio's broader corporate priorities, regaining 100-per-cent control of the Madison project is a positive development, as it provides American Pacific with an excellent opportunity to advance the project more rapidly with shareholders now having 100-per-cent exposure to new drill results and project success. We recently collaborated to define a series of shallow priority targets and have a permitted drill program targeting high-grade copper and gold that American Pacific plans to commence as soon as weather permits."

The Madison project was host to small-scale production, which concluded in 2012 with 2.7 million pounds of copper produced at grades ranging from 20 to 35 per cent copper. Subsequent drilling at Madison in 2017 included 30.18 metres of 24.50 grams per tonne gold and 0.39 per cent Cu and 10.97 m of 41.65 g/t Au and 0.38 per cent Cu (UG17-05 and UG17-06, respectively). Full disclosure can be found in the company's National Instrument 43-101 43-101 technical report for the Madison project.

Drilling in 2017 also included a drill hole (C17-24) completed to 377 m depth, which intersected altered latite porphyry material at 301 m and has yet to be followed up on. The final drill hole from the last drill campaign completed by Rio intersected 6.53 m of 14.44 g/t Au and 0.11 per cent Cu in an area that remains open approximately 100 m down plunge from the known skarn mineralization (see press release dated Jan. 12, 2022).

The company intends to proceed with the 2024 drill program as planned in collaboration with Kennecott. The program has been designed to include drill holes within the skarn that will aim to confirm and extend mineralization encountered in historical drilling (C05-06: 14.69 m of 12.10 g/t Au and farther down hole 61.63 m of 6.97 per cent Cu. Full disclosure can be found in the company's NI 43-101 43-101 technical report for the Madison project. The 2024 drill program is also expected to include one to two shallow drill holes within a regional target area that has yet to be tested since the completion of geophysical surveys (see press release Jan. 19, 2022).

Qualified person statement

Technical aspects of this press release have been reviewed and approved by the designated qualified person under National Instrument 43-101, Eric Saderholm, PGeo.

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-sulphate (VMS) 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. 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 high-grade, precious metals projects located in key mining districts in Nevada, United States, including the Ziggurat gold project, partnered with Centerra Gold, and the Tuscarora gold-silver project. The company's mission is to grow by the drill bit and by acquisition.

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