Auxico Resources Canada Inc. announced that the Minastyc Project, a Company-controlled property, has received a Mining Registration Certificate from the National Mining Agency as it relates to the property mining title, which secures the Company's rights to the exploration and exploitation of the property until 2040. The Company has furthermore executed an Exclusive Operating Agreement and Security Interest Contract for Future Production with the mining title holder, Mr. Climaco Unda; the execution of these agreements assures the Company's rights to commence production during the mining title transfer period, allowing Auxico to advance an exploitation plan which includes mining key areas of the Minastyc property related to high-grade samples of tin collected during previous work programs. The Security Interest Contract assigns to the Company the rights to perform mining activities and enter into production on the Minastyc property, as well as collateralizes the obligation of Mr. Climaco Unda's assignment of the mining title to Auxico. The Minastyc Project mining title covers a total area of 188 hectares in Puerto Carreño, department of Vichada, Colombia, a prolific critical mineral property with sampled grades up to 62.13% tin, among rare earth elements, tantalum, niobium, and others.

The Company has started operational planning for small-scale mining production with the intention to achieve a volume of up to 300 tonnes per month, commencing with Phase 1 (area of 18.4 hectares) production of tin concentrates from targeted high-grade sections of the property delineated through previous sampling programs. Auxico previously announced the discovery of a high-grade tin-tantalum target area on the Minastyc property with titanium, niobium, scandium and hafnium credits that has been subject to pit sampling; for reference, please refer to the news release published by the Company on June 24th, 2021. Samples previously taken from the tin-tantalum target area were the result of pan concentration and screening, and were subsequently analyzed by Coalia Research Institute in Thetford Mines, Quebec. These samples indicated grades up to 62.13% tin, 25.08% tantalum, 15.50% titanium and 8.15% niobium, along other critical minerals such as rare earth elements and scandium (Sample Ref: #1-#3 in Table 1).

A third sampling campaign analyzed by Coalia Research Institute in 2021 likewise indicated concentrate grades up to 47.2% tin, 9.49% neodymium, 31.09% cerium, 42.85% titanium, 30.41% tantalum and 25.44% niobium. The goal of the Company is to produce and export rare-earth elements, transition metals and post-transition metals such as tin, in the form of concentrates, from its Minastyc property. Registration Details: The Minastyc Project is a Company-controlled property, registered under the title holder Mr. Climaco Unda, with total assignment of rights, licenses and all related registrations to the concession legally assigned to Auxico, as filed under the ANM.

As a result of the executed operator and security agreements, the current mining title holder, Mr. Climaco Unda, holds the obligation to transfer the mining title to the exclusive operator of the concession, Auxico, and in the meantime, the Company retains the rights to carry out any mining activities at its discretion, including but not limited to the installation of the necessary infrastructure and mineral production. The Mining Registration Certificate (#CRM-202308221848-479897), as it relates to the mining title (No. LFH-14431X), holds a validity period until August 21, 2040, and provides Auxico with the rights to exploit the property and start mineral production.

This approval follows the grant of a 2-year environmental license for small-scale open-pit mining received in June 2023, the authorization of the Company's work plan ("PTO") by the ANM, as announced in May 2022, and the approval of EIA for the Temporary Environmental License in April 2023 from the Regional Autonomous Corporation of the Orinoquia. This is a significant development for Auxico given the recent legislative moves towards more responsible and sustainable mining practices in Colombia proposed by the ANM, which include ceasing the issuance of licenses for open-pit mining as announced during August and September 2023, requiring mining firms to get environmental licenses for exploration in order to protect the environment, increased state control, and the prevention of conflict between communities and extractive companies. The issuance of the required licenses and permits to date, and in a timely manner, is a testament to the Company's efforts to maintain responsible operations within the State of Vichada.

The approval of the Global Environmental Licence for the Minastyc Project is a subsequent step for the Company; this license will allow for a greater mineral production capacity from the property. The Company has furthermore applied for an export license.