Mr. Reagan Glazier reports

PACIFIC BAY BRAZIL GOLD PROPERTY UPDATE, TRADING RESUMPTION

Pacific Bay Minerals Ltd. will be reinstated for trading by the TSX Venture Exchange on commencement of trading, Monday, April 21, 2025. The shares of the company were halted upon the company disclosing in its Jan. 7, 2025, news release that it had signed a letter of intent to acquire a property in Brazil that was deemed to be a fundamental acquisition under exchange policies and, therefore, a reviewable transaction. The resumption follows provision to the exchange of certain information, such as a National Instrument 43-101-compliant technical report on the Pereira-Velho gold prospect in Alagoas state, Brazil, which report remains subject to further comment and review by the exchange, and a draft of the definitive option agreement with Appian Capital Advisory, whereby Pacific Bay proposes to acquire 100 per cent of the project. The agreement is nearing completion and has not yet been signed. Further details of the agreement and the project are outlined below. The transaction remains subject to final review and approval from the exchange.

"Pacific Bay looks forward to completing this transaction as soon as possible and opening an exciting new chapter of gold exploration in Brazil," said Pacific Bay president and chief executive officer Reagan Glazier. "The markets are volatile, but gold has remained strong and I believe this is a great time to be taking on such a promising property."

The Pereira-Velho gold prospect

The following are key findings from the technical report on the project, located in Coite do Noia, Alagoas, Brazil.

Covering 14,596 hectares in the gold-rich Borborema province, the project benefits from excellent road access and proximity to the commercial hub of Arapiraca, supporting year-round exploration in a tropical climate.

The technical report, prepared by RBM Servicos Tecnicos Ltda., highlights significant gold discoveries driven by past exploration, including soil sampling, trenching and two drilling campaigns totalling over 6,300 metres. These efforts confirmed gold in quartz veins and pyrite-rich zones, with continuous mineralization at depth -- pointing to a promising orogenic gold system. Sample testing followed strict industry standards, verifying reliable gold grades and visible gold in drill cores.

Metallurgical tests suggest strong gold recovery potential from oxidized ores using methods like cyanidation or heap leaching, though sulphide-rich ores may require additional processing to unlock their value. The project's geology features ancient metamorphic rocks -- gneisses, quartzites and banded iron formations -- ideal for hosting gold deposits.

The technical report recommends a $1.56-million (U.S.) budget, including further drilling studies to expand resources and assess economic potential. Continuing environmental and community efforts will ensure sustainable progress.

With an eight-month exploration plan proposed, Pacific Bay is poised to unlock the full promise of Pereira Velho, delivering value to shareholders and stakeholders alike.

Activity                      Cost (U.S.$)

Drilling                         $850,000   
Lab assaying                      150,000   
Metallurgical tests                25,000    
Resource statement report          38,000    
Vehicles/rent/facilities/IT        55,000    
G&A                               300,000   
Continency (10%)                  142,000   
Subtotal                       $1,560,000

The agreement

As previously announced, key terms of the agreement are the following.

Payment to Appian of $710,000 (Canadian) in cash and $700,000 (Canadian) in either common shares or cash at the company's discretion. These payments are structured in two tranches:

• Upon signing the definitive agreement and obtaining necessary approvals:
  • $280,000 (Canadian) in cash;
  • $250,000 (Canadian) in cash or common shares;
• On the first anniversary of the definitive agreement:
  • $430,000 (Canadian) in cash;
  • $450,000 (Canadian) in cash or common shares.

Appian is to retain a 1.5-per-cent net smelter royalty on production from the project. Pacific Bay has the option to buy back this royalty at any time for a total of $3.5-million (U.S.).

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by David Bridge, PGeo, a consultant of the company, who is a qualified person as defined in National Instrument 43-101.

We seek Safe Harbor.