Mr. Frank Marasco reports
WEST HIGH YIELD (W.H.Y.) RESOURCES LTD. SIGNS DEFINITIVE FORWARD SALES AGREEMENT TO SELL MAGNESIUM ORE FROM ITS RECORD RIDGE PROJECT
West High Yield (W.H.Y.) Resources Ltd. has executed a definitive forward sales agreement with Galaxy Trade and Technology LLC, a United States-based international magnesium supply company, for the purchase and sale of magnesium-rich serpentine ore produced by West High Yield from its Record Ridge industrial mineral mine project located near Rossland, B.C., Canada.
The agreement, stemming from the letter of intent signed between Galaxy and the company news released on Dec. 7, 2022, establishes a long-term commercial partnership between the two companies, secures a committed market for the ore produced from the RRIMM project, and supports the company's transition toward mine development and production.
Under the agreement, among other things, Galaxy will purchase the ore from the RRIMM project over an initial two-year period with an option to extend to a nine-year term. The agreement requires an initial $5-million (U.S.) deposit to be placed with the company, in trust, to finance the initial ore deliveries. The agreement further establishes a unit price of $500 (U.S.) per metric tonne of ore during the initial two-year period, with delivery quantities of ore expected to range between approximately 6,600 and 7,700 metric tonnes per week during operating months once production at the RRIMM project begins.
The agreement represents potential revenue exceeding $30-million (U.S.) per year for the company during the initial two-year period and production stage. The agreement marks a major milestone in the commercialization of the RRIMM project and establishes the first long-term supply relationship for the ore to be produced at the RRRIM project.
Frank Marasco Jr., president and chief executive officer of West High Yield, stated: "This agreement with Galaxy represents a significant step forward for our RRIMM project. With permitting in place and construction preparations under way, securing a committed long-term purchaser provides a strong commercial foundation as we move toward production. Record Ridge hosts one of the largest and highest-grade magnesium deposits of its type globally, and we are pleased to partner with Galaxy to bring this strategic resource to international markets."
Michael North, board chairman and chief executive officer of Galaxy, stated: "Galaxy executives have followed West High Yield and talked to its executives regularly for more than five years as West High Yield advanced through challenging permit processes in Canada. We congratulate West High Yield, its management, shareholders and stakeholders on today's announcement, and look forward to supporting the continued success of West High Yield in the years to come."
The RRIMM project received its Mines Act permit from the Province of British Columbia in October, 2025, and is advancing toward construction, with initial production expected following completion of site development.
The Record Ridge deposit contains magnesium-rich serpentine mineralization located approximately 7.5 kilometres from the town of Rossland in southeastern British Columbia and approximately five kilometres from the U.S. border. The company holds 100-per-cent mineral rights of the deposit.
Magnesium is strategically recognized as a critical mineral due to its growing importance in aerospace, automotive lightweighting, energy systems, defence applications and advanced manufacturing. The RRIMM project positions West High Yield as a potential future supplier of magnesium feedstock to global markets.
The company will provide further updates as it advances postpermit compliance activities, completes remaining project permitting and construction preparations, and finalizes additional commercial arrangements related to the project.
About West High Yield (W.H.Y.) Resources Ltd.
West High Yield is a publicly traded junior mining exploration and development company, established in 2003, and focused on acquiring, exploring and developing mineral resource properties in Canada. Its primary objective is to develop its Record Ridge critical mineral (magnesium, silica and nickel) deposit using green processing techniques to minimize waste and carbon dioxide emissions.
The company's Record Ridge critical mineral deposit, located 10 kilometres southwest of Rossland, B.C., has approximately 10.6 million tonnes of contained magnesium based on an independently produced National Instrument 43-101 (Standards of Disclosure for Mineral Projects) preliminary economic assessment technical report (titled "Revised NI 43-101 Technical Report Preliminary Economic Assessment Record Ridge Project, British Columbia, Canada") prepared by SRK Consulting (Canada) Inc. on April 18, 2013, in accordance with NI 43-101, which can be found on the company's profile at SEDAR+.
Qualified person
Rick Walker, BSc, MSc, PGeo, the company geologist, is a qualified person as defined in National Instrument 43-101, and has reviewed and approved the technical information in this press release.
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