Mr. Jonathan Hamel reports

MOSAIC SIGNS OPTION AGREEMENT WITH CASTLEBAR CAPITAL TO SELL UP TO 100% INTEREST IN THE LICHEN PROJECT

Mosaic Minerals Corp. has entered into an option agreement dated June 7, 2024, with Castlebar Capital Corp., pursuant to which Castlebar will be granted an option to acquire up to a 100-per-cent interest in the Lichen project. The transaction is intended to be Castlebar's qualifying transaction for purposes of the TSX Venture Exchange's capital pool company program and was first disclosed in its news release on April 25, 2024, announcing the entering into of a letter of intent with Mosaic. The terms of the option agreement are the same as the LOI and are summarized below.

The Lichen project consists of 282 claims covering a total area of 15,622 hectares and is located approximately 100 kilometres west of the Chibougamau mining camp. The property is underlain by the volcanic rocks of the Obatogamau formation intruded by stocks and plutons of intermediate composition. The volcanic belt is parallel to two known gold-bearing volcanic belts, the Bachelor Lake gold area to the west and the Osisko-Windfall gold area to the south. The Nelligan gold project and the Monster Lake gold project are located at the eastern extremity of the volcanic belt.

Terms of the option agreement

Pursuant to the option agreement, Castlebar may acquire up to a 50-per-cent undivided interest (the first option) in the Lichen project from Mosaic by, among other things:

1. Making aggregate cash payments of $205,000 to Mosaic as follows:
   • $15,000 on the closing of qualifying transaction;
   • An additional $15,000 within six months following the effective date;
   • An additional $50,000 on or before the first anniversary of the effective date;
   • An additional $50,000 on or before the second anniversary of the effective date;
   • An additional $75,000 on or before the third anniversary of the effective date.
2. Issuing an aggregate of 1.35 million shares to Mosaic as follows:
   • 250,000 shares no later than seven days following the effective date;
   • An additional 350,000 shares on or before the first anniversary of the effective date;
   • An additional 250,000 shares on or before the second anniversary of the effective date;
   • An additional 500,000 shares on or before the third anniversary of the effective date.
3. Incurring at least $750,000 in qualifying expenditures on the property as follows:
   • At least $150,000 in qualifying expenditures on the property on or before the first anniversary of the effective date;
   • At least $200,000 in cumulative qualifying expenditures on the property on or before the second anniversary of the effective date;
   • At least $400,000 in cumulative qualifying expenditures on the property on or before the third anniversary of the effective date.

Upon exercise of the first option, Castlebar shall have 45 days to either (i) establish a joint venture with Mosaic in which each shall hold a 50-per-cent joint venture interest or (ii) exercise an additional option to acquire an additional 50-per-cent interest in the property by making a $150,000 cash payment and issuing 1.5 million shares to Mosaic within the 45-day period. If Castlebar exercises the additional option, then it will have earned a 100-per-cent undivided interest in the property free and clear of all encumbrances except for a 2-per-cent net smelter royalty to be retained by Mosaic. Castlebar may accelerate and carry forward any of the cash payments, share issuances or work expenditures.

The scientific and technical information of Mosaic Minerals included in this press release has been reviewed and approved by Gilles Laverdiere, PGeo, vice-president, exploration, of Mosaic Minerals and qualified person under National Instrument 43-101 respecting information concerning mining projects.

About Mosaic Minerals Corp.

Mosaic Minerals is a Canadian mining exploration company listed on the Canadian Securities Exchange focusing on the exploration of critical minerals such as nickel in the province of Quebec.

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