Mr. Brian Stecyk reports

PEDRO RESOURCES LTD. SIGNS COLLABORATION AGREEMENT WITH BIOTECHNOLOGY COMPANY THAT PROVIDES CONTAMINATION REMEDIATION SERVICES

Pedro Resources Ltd. has executed a collaboration agreement (CA) dated July 13, 2023, with Fixed Earth Innovations Ltd. (FEI). FEI is a private biotechnology company engaged in the business of the development, testing and deployment of microbes for use in remediation of challenging resource extraction and industrial contaminants in soils and waters and enhancing plant growth in agriculture and ecosystem restoration. The CA follows a letter of intent announced March 20, 2023.

Under the CA, Pedro and FEI agree to collaborate in respect of the development and use of biotechnology for contaminant remediation in resource extraction projects, including mining. In particular, under the CA Pedro and FEI will focus on the development of heat-tolerating microbes, metals remediation microbes, tetrachloroethylene (commonly referred to as PERCs (perchloroethylene) or PCEs), and poly and perfluoroalkyl substances (PFAS, commonly referred to as forever chemicals).

The CA provides for the licensing of certain intellectual properties, projects and products to Pedro and, in return, Pedro will make a $200,000 cash payment to FEI, payable over six months. The first payment will be made within 21 days following regulatory approval of the CA. The CA also includes provisions for the future acquisition of FEI if warranted.

"Pedro began looking at biotechnology because of the major reclamation issues facing the mining industry. FEI is harnessing the earth's natural immune system to do what Mother Earth does naturally. The difference is FEI has found ways to dramatically shorten the time frame from decades or centuries to weeks or months," says Pedro chief executive officer Brian Stecyk. "We expect that Pedro's relationship with FEI, and our ability to finance their product development, will enhance FEI's ability to produce safe, cost-effective and timely solutions to many of the contamination challenges that companies encounter in the development of their projects."

"We are proud to enter this new relationship with Pedro. The biotechnology we are working on has a positive impact on the environment. As a small company we have limited resources to pursue expansion and continue the ongoing research and development of our biotechnology. This CA is a positive first step for both parties to further develop these technologies," says Timothy Repas, president of FEI.

Appointment of advisers

The company further announces that the principals of FEI, Tim Repas, Will McInnes and Dan Lanman, will be serving as biotechnology advisers to the board of directors and management of Pedro.

• Mr. Repas, MSc, PAg: Mr. Repas brings a diverse background in biotechnology, environmental consulting and laboratory research. As the co-founder and president of FEI, Mr. Repas has been involved in driving innovative solutions in the biotechnology sector. Mr. Repas holds an MSc in biology from the University of Saskatchewan and a BSc in biochemistry from Elmira College, New York. Mr. Repas's contributions to the field are reflected in numerous publications, patents and presentations, including a Canadian patent for the degradation of hydrocarbons using a filamentous fungus. He also has significant experience in environmental consulting, working as the contaminated sites manager at Roy Northern Environmental Ltd.
• Mr. McInnes: With a background in project management, certified by PMI (Project Management Institute) in 2019, Mr. McInnes has served as the primary field project manager for various projects across Canada, including the remediation of a former landfill on Vancouver Island, a highway road maintenance yard and an Edmonton pub/parkade. As a founding member of Fixed Earth, Oil-Out Ltd. and Dirty Dirt Services Ltd., he possesses a unique knowledge of various technologies and their customization for diverse project requirements. Mr. McInnes recently joined the board of directors of Pedro Resources.
• Mr. Lanman: As a co-founder and executive vice-president of FEI, Mr. Lanman has been instrumental in overseeing business operations and implementing financial controls, playing a key role in the company's growth since its establishment. Mr. Lanman has a diverse range of experience, including serving as a co-founder and director, president, director of operations, and buyer's team lead of FEI.

Private placement of convertible debentures

The company further announces its intention to complete a non-brokered private placement of $725,000 principal amount convertible debentures of the company. The debentures shall bear interest at a rate of 7.2 per cent per annum. The debentures will mature on the date that is 36 months from the closing of the offering. The debentures will be convertible into common shares in the capital of the company at a price of five cents per common share, in whole or in part, at the option of the holder at any time prior to the maturity date. All securities issued in connection with the offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation.

The proceeds from the offering will be used for general corporate and working capital purposes.

About Pedro Resources Ltd.

Pedro Resources is a Canadian exploration company listed on the Canadian Securities Exchange focused on mineral exploration and development.

We seek Safe Harbor.