Element 29 Resources Inc. announced the Ministry of Energy and Mines of Peru (‘MINEM’) has issued authorization for the Company to start its exploration activities at its wholly-owned Elida copper project (‘Elida’). With this authorization, the Company has finalized the permitting process with the MINEM, which was a prerequisite to commencing its drill program. Element 29 has made preparations to start its 2021 Phase 1 drill program at Elida. The primary focus of the 2021 exploration program at Elida involves drilling up to 4,000 meters (‘m’) in and around the known copper mineralization at Elida target 1 to supplement data from the previous 18 drill holes (9,880 m) completed in 2014-2015. This will reduce the distance between six previously drilled holes that intersected Target 1, which is one of five exploration targets identified within the Elida porphyry cluster. A total of six holes are planned with depths from 450 to 1,000 m. The objectives of the current drill program are to: (i) Achieve a drill hole spacing that is appropriate for estimating a mineral resource in a portion of Target 1; (ii) Investigate the vertical continuity and zonation of mineralization in Target 1, and; (iii) Improve the confidence of mineralization boundaries interpreted from previous drilling and outcrops. A single hole will test the vertical extent of mineralization up to 1,000 m below surface. The depth of investigation from previous drilling was 400 m below surface. The remaining holes will be angled to provide intersections across the Target 1 mineralized zone and provide information between existing drill holes. The drill holes from current and previous drilling will result in a drill hole array with a spacing of approximately 100 m. A drilling contractor has been selected for the program and mobilization of equipment to the project will begin once preliminary site preparations, presently underway, are complete. Representatives of the drilling company completed a detailed examination of the site to assess equipment requirements and plan for mobilization. Personnel forming the technical team in Peru are being assembled, which includes project geologists, technicians, health and safety, and community relations personnel. In parallel with field mobilization and preparation, and following MINEM's authorization to initiate activities, the Company is applying for a Water Use Permit for use in drilling operations. This is a routine part of the overall permitting process and is not expected to impede the start drilling operations. Preliminary metallurgical studies were initiated in late April on samples from holes drilled previously. Samples representing the main styles of mineralization were selected from sample reject material available from the 2014-2015 drill program. The metallurgical study is expected to provide preliminary information on recovery of the economic constituents in Target 1 mineralization. An initial drill program, completed by Elida's previous operator, Lundin Mining Peru SAC (‘Lundin’), consisted of 9,880 m in 18 diamond drill holes. All holes intercepted Cu-Mo-Ag mineralization, with significant Cu-Mo-Ag mineralization at Target 1 intersected by six of the holes. Target 1 mineralization sub-crops beneath post-mineral unconsolidated colluvial cover, as indicated by some intersections that began in bedrock immediately below the colluvium. Of the six drill holes intersecting the Target 1 mineralized zone, four ended in mineralization to suggest the mineralized system is open at depth. The Company is pursuing an exploration target at Elida Target 1 of 200M to 500M tonnes, with grades ranging between 0.35%-0.45% Cu, 0.03%-0.05% Mo and 3.5 g/t to 4.5 g/t Ag. This exploration target is based on the high-quality data from the initial 18 drill hole diamond drill program (9,880 m) completed by Lundin, and the surficial mapping and detailed interpretations undertaken by Lundin and Globetrotters Resources Peru SAC. The potential quantity and grade of this exploration target is conceptual in nature. There is currently insufficient drilling data to define a mineral resource and it is uncertain if further exploration will result in this target being delineated as a mineral resource. Elida is a porphyry copper-molybdenum exploration project within a property composed of 28 mining concessions totaling 19,210 hectares that are 100% owned by Element 29. The property contains a large, 2 x 2 kilometre (‘km’) alteration system enclosing a cluster of porphyry centres that represent five distinct exploration targets. A first-pass drill program consisting of 18 diamond drill holes totaling 9,880 metres completed in 2014/15 identified significant copper, molybdenum, and silver mineralization associated with a quartz monzonite porphyry stock at Target 1. The remaining four large targets are untested. Under the current drill permit, the Company can elect to drill test all identified targets. The project is in central Peru, approximately 85 km inland from the Pacific coast at moderate elevation between 1,500 and 2,000 m and close to transportation and power infrastructure, including a 45 MW hydroelectric generation facility situated about 15 km from the project.