Chief Prosecutor Declares Sangihe Priority FOR Illegal Mining Enforcement; Prosecutorial Action Intensifies
News Release
June 3, 2026 Trading Symbol: “BARU: TSX.V | BARUF: OTCQB”
CHIEF PROSECUTOR DECLARES SANGIHE PRIORITY FOR ILLEGAL MINING
ENFORCEMENT; PROSECUTORIAL ACTION INTENSIFIES
VANCOUVER, B.C. - Baru Gold Corp. (BARU: TSX.V | BARUF: OTCQB) (“Baru” or the
“Company”) and its subsidiary PT. Tambang Mas Sangihe (“TMS” or the “Company”) are pleased
to inform shareholders that the Chief Prosecutor of North Sulawesi has designated Sangihe Island
a priority target for enforcement of illegal mining following a failed, large-scale mobilisation by
illegal miners.
Failed Illegal Mining Mobilisation:
From November 5, 2025, to May 18, 2026, Sangihe Island experienced a resurgence of illegal
mining. The mobilisation was undertaken and supervised by foreign nationals, with support from
Indonesians from outside Sangihe and local day labourers. All illegal operations have since ceased.
Until this recent attempted mobilisation, there ha s not been significant illegal mining on Sangihe
since November 2024.
The mobilisation of equipment was larger and more aggressive than the Company has ever seen.
The foreign nationals were using over 20 excavato rs to build and prepare processing facilities
capable of producing approxima tely $20 million CAD every 60 days. The work was being
undertaken in the exclusive mining concession of the Company under the false pretence of a local
cooperative mine.
Unfortunately, the failed mobilisation destroyed an additional section of protected forest and area
of mangroves. Tragically, a local Sangihe reside nt also died while improperly transporting
cyanide, a reagent used in gold processing. So fa r, at least four Sangihe residents have died
undertaking illegal gold mining on Sangihe Island.
Company management estimate the failed mobilisation resulted in a net loss of approximately $3.5
million CAD to the illegal miners.
Baru Gold Corp.
9th Floor 1021 West Hastings St
Vancouver, BC V6C 1L6
www.barugold.com
Enforcement Developments:
The Chief Prosecutor of North Sulawesi, Jacob Hendrik Pattipeilohy, visited Sangihe Island and
toured the illegal mining site with members of his enforcement team on May 18th.
All illegal mining stopped the day of the site inspection, and there has been no further activity.
During the visit, the Chief Prosecutor designated Sa ngihe Island as a priority target for illegal
mining enforcement. He further reported that he had a moral and lega l obligation to ensure
enforcement as President Prabowo had given a direct order to crack down on illegal mining.
The Chief Prosecutor of North Sulawesi, is the se nior law enforcement official responsible for
overseeing criminal prosecutions, coordinating legal enforcement activ ities, and supervising
prosecutorial offices across the province, including matters relate d to corruption, illegal mining,
public order, and protection of state interests.
In public comments, Mr. Pattipeilohy specifically stated that a non-negotiable starting point was
the complete end of illegal mining, criticized the lack of police enforcement, and emphasised the
importance of the integrity of law enforcement officers.
The Chief Prosecutor also stated his intentions was to pursue criminal charges from offenders,
seek damages equal to the gold previously illegally mined and pursue additional financial penalties
to fund land remediation. The Company intends to provide documentation and records that will
assist in calculating the financial damages they seek to recover.
The North Sulawesi High Prosecutor's Office app ears to be working towards dismantling the
network that is facilitating the illegal mining on Sangihe Island.
Company management understands that four foreign nationals allege d to be key or chestrators of
the illegal mining are deta ined in prison and that a multi-agency inves tigation is underway. In
addition, multiple excavators and an assortment of heavy equipment have been impounded and are
in police custody.
TMS management and staff have tirelessly worked and is cont inuously liaising with multiple
national enforcement agencies to end the illegal mining on Sangihe.
As enforcement and investigation of the illegal mining network is ongoing, further planned actions
and details cannot be shared. The Company anticipates additional arrests.
Mr. Terrence Filbert, Chairman an d CEO of Baru Gold, commented: “The persistence of illegal
mining on Sangihe Island underscores the local community’s desire for the economic benefits that
come from mining operations. There are fe w employment opportuni ties on Sangihe, and I can
understand the appeal of even limited work. However, the economic benefits to locals are largely
limited to low-paid, unsafe day labour.
“In contrast, our Company has paid millions of dollars in local and national taxes, has a
comprehensive Community and Social Improvem ent Program, pays workers good wages with
comprehensive benefits, and has significant plans for infr astructure development and
improvement on Sangihe Island. In addition, we hold a valid Environmental Permit and are legally
required and responsible for environmental reclamation.”
Ending Illegal Mining Requires the Start of the Company’s Production Operations:
Recently, Company management met with the senior leadership of the Ministry of Energy and
Mineral Resources (ESDM) and the Director of Special Crimes in the National Police of Indonesia.
The intention of the meeting was to coordinate methods to end illegal mining.
A key conclusion reached during the meeting was that the only enduring way to end illegal mining
is for a legal mining opera tion to begin, and the parties in atte ndance agreed to act expeditiously
to support this objective.
ABOUT SANGIHE GOLD PROJECT
The Sangihe Gold Project (“Sangihe”) is located on the Indonesian island of Sangihe, off the northern coast
of Sulawesi with a gold bearing area of approxima tely 25,000 ha. Sangihe has an existing National
Instrument 43-101 report suitable for mining planning and production schedules for an area within the 65-
ha area targeted for initial production. See the Comp any’s “Independent Technical Report on the Updated
Mineral Resource Estimates of the Binebase and Baw one Deposits, Sangihe Project, North Sulawesi,
Indonesia” (Mining Associates Pty Ltd, February 1st, 2025). Only 10% of the gold bearing area has been
explored.
Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated
economic viability. The Company intends to proceed to production without the benefit of first establishing
mineral reserves supported by a feasibility study. Th e Company cautions readers that the any production
decision made by the Company will not be based on a NI 43-101 feasibility study of mineral reserves that
demonstrates economic and technica l viability and as such, there may be involved increased uncertainty
and various technological and economic risks
The Company's 70-percent interest in the Sangihe-min eral-tenement Contract of Work (“CoW”) is held
through PT. Tambang Mas Sangihe (“TMS”). The remain ing 30-percent interest in TMS is held by other
Indonesian corporations. The term of the Sangihe CoW agreement is 30 years upon commencement of the
production phase of the project. Baru has met all the requirements of the Indonesian government and has
been granted its environmental permit.
ABOUT BARU GOLD CORP.
Baru Gold Corporation is a dynamic junior gold developer with NI 43-101 gold resources in Indonesia, one
of the top ten gold producing countries in the world. Based in Indonesia and North America, Baru’s team
boasts extensive experience in starting and operating small-scale gold assets.
On behalf of the Board of Directors
BARU GOLD CORP.
“Terry Filbert”
Terry Filbert
Chairman and Chief Executive Officer
604-684-2183
For investor contacts more information, please contact:
Kevin Shum
Investor Relations
647-725-3888 ext. 702
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