SolGold announced the signing of the Exploitation Contract for the Cascabel Project, its flagship copper-gold project in Ecuador. This milestone follows the successful contractual negotiations and approval of the term sheet by the Government of Ecuador in July 2023 (see SolGold release dated 20 July 2023). The EC and existing legislation and regulations establish the legal and financial terms and conditions required for the Cascabel Project's development.

Exploraciones Novomining S.A. ("ENSA"), SolGold's wholly-owned subsidiary in Ecuador, embarked on a rigorous exploration journey at Cascabel in 2012, leading to the major discovery hole at Alpala in early 2014, and the subsequent discovery of Tandayama-Ameríca deposit in later drill programs. SolGold has since drilled over 300,000 metres of cored exploration, resource definition, and geotechnical drill holes and has conducted numerous resource, mining, metallurgical, environmental, and social studies on the Project. This extensive work has transformed the Project into one of the world's largest undeveloped copper-gold porphyry deposits, with the potential to significantly boost the Ecuadorian economy and serve as a blueprint for the exploration and discovery of other resources on SolGold's extensive regional targets throughout Ecuador. Key Exploitation Contract Terms(All monetary amounts are stated in United States Dollars): Share of Cumulative Benefits: The EC provides that the Government of Ecuador's share of cumulative discounted benefits derived from SolGold's Cascabel Project will be at least 50%.

The Government of Ecuador's benefit will be calculated as the present value of the cumulative sum of taxes paid, including corporate income taxes, royalties, labour profit sharing paid to the State, non-recoverable VAT, and any previous sovereign adjustment payments. Development and Production Rights: ENSA ("Mining Concessionaire") has secured the right to develop the Cascabel Project and produce copper, gold, and silver from the contract area for 33 years, which may be renewed for the life of the mine. Advance Royalty Payment: SolGold will make an advance royalty payment totalling $75 million, with the first payment of $25 million due upon the concentrator construction start date.

The remaining two payments, each of $25 million, will be made on the first and second anniversary, respectively, from the date of the first payment. The advance royalty will be deductible against the Government Royalty (defined below). Government Royalty & Taxes: Once the Government of Ecuador approves the new Investment Protection Agreement, the Company expects a corporate income tax rate of 20% during the Project's life.

Based on this corporate income tax rate, the Mining Concessionaire, the State, and SolGold have agreed to a variable royalty on net smelter revenues by Ecuadorian Mining Law ("Government Royalty"). The Government Royalty on net smelter revenues will follow a variable percentage rate from 3% to 8%, depending on the type of mineral and its price. Economic Imbalance Mechanism: The EC includes a mechanism for correcting any economic imbalance for the Mining Concessionaire due to changes in fiscal policy, taxes, laws, and regulations.

This provision removes significant uncertainty for the future economic environment governing the Project. Investor Autonomy: One of the most crucial principles that the EC develops is the autonomy and freedom of the Company to make its commercial decisions. The technical design of the mine, investment amount, production capacity, etc., are decisions of the Company and respond to its business strategy.

This freedom and autonomy ensure development that aligns with SolGold's philosophy and principles. Investor Protection Rights: The EC addresses various investor protection rights, ensuring the protection of the investment, including a dispute resolution mechanism through international arbitration.