Cerro de Pasco Resources Inc. Announces Execution of Settlement Agreement with Trevali Monitor
PRESS RELEASE
Cerro de Pasco Resources Inc. Announces Execution of Settlement
Agreement with Trevali Monitor
Montréal, Québec, Canada – December 12, 2025 – Cerro de Pasco Resources Inc. (“CDPR” or
the “Company”) announces that it has entered into a settlement agreement (the “Settlement
Agreement”) with FTI Consulting Canada Inc., in its capacity as court -appointed monitor of
Trevali Mining Corporation (the “Monitor”), and with Trevali Mining Corporation (“Trevali”),
resolving all claims and counterclaims in the arbitration relating to the Share P urchase
Agreement for Trevali Peru S.A.C. and the Santander Mine (the “Settlement”).
The Settlement is subject to court approval , as Trevali remains in creditor protection under the
Companies’ Creditors Arrangement Act. The Monitor is bringing an application in the Supreme
Court of British Columbia set to be heard December 16, 2025 for approval of the Settlement.
Background
As disclosed in the Company’s financial statements, CDPR recorded a purchase price payable
and a contingent consideration payable associated with the 2021 acquisition of the Santander
Mine. These amounts have been the subject of a dispute between CDPR and Trevali, as previously
disclosed. In December 2024 , the Monitor commenced arbitration proceedings related to this
dispute. CDPR responded to the claim in February 2025 and brought a counterclaim seeking to
set off any amounts found to be due and owing to T revali against losses incurred by CDPR in
relation to the Santander Mine acquisition.
Settlement Summary
Under the terms of the signed Settlement:
• Following court approval, the parties will jointly instruct the arbitrator to terminate the
arbitration and release the CAD 700,000 security for costs back to the Monitor.
• CDPR will pay CAD 2,000,000 in full and final settlement of all claims brought by Trevali
and the Monitor, within 10 days of the issuance of the arbitrator’s termination order.
• All claims and counterclaims between the parties will be mutually released.
• Each party will bear its own legal costs and both will share equally any remaining
arbitrator fees.
The Company believes this resolution is an important step in advancing its strategic objectives
and focusing fully on its core operations and development initiatives.
Strengthening CDPR’s Financial Position
After court approval, CDPR will eliminate all Trevali -related liabilities recorded on its balance
sheet, including a purchase price payable of USD 1,584,164 and a contingent consideration
payable of USD 2,500,000 as disclosed in the Company’s financial sta tements. The removal of
these items represents a total reduction of USD 4,084,164 and is expected to result in a material
gain on settlement when reflected in CDPR’s financial reporting.
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Management Commentary
“We are pleased to have reached a definitive resolution that removes the remaining exposure
associated with the historic Trevali transaction,” said Guy Goulet, CEO of CDPR . “ This
settlement, once approved by the court, provides clarity for all parties involved and allows the
Company to move forward with a clear focus on advancing our core projects in Peru.”
About Cerro de Pasco Resources
Cerro de Pasco Resources is focused on the development of its one hundred percent owned El
Metalurgista mining concession in central Peru. The concession hosts silver -rich tailings and
stockpiles accumulated over more than a century of mining. The Company’s strategy is to
reprocess and remediate historic mining waste, unlocking value while supporting sustainable
development.
CDPR is committed to advancing Quiulacocha as a model for responsible tailings reprocessing,
environmental remediation, and sustainable value creation in Peru.
For more information, please visit www.pascoresources.com.
Further Information
Guy Goulet, CEO
T elephone: +1 579 476 7000
Mobile: +1 514 294 7000
Email: [email protected]
Forward-Looking Statements and Disclaimer
Certain information contained herein may constitute “forward -looking information” under
Canadian securities legislation. Generally, forward-looking information can be identified by the
use of forward-looking terminology such as, “will be” , “expected” or variations of such words and
phrases or statements that certain actions, events or results “will” occur. Forward -looking
statements, including but not limited to statements the Corporation’s objectives, goals or future
plans, exploration results, potential m ineralization, estimates of mineral resources, cost
estimates, the timing of governmental authorizations and the expectations of the Corporation’s
management regarding the timing of court approval for the Settlement, are based on the
Corporation’s estimates and are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or achievements of the
Corporation to be materially different from those expressed or implied by such forward -looking
statements or forward-looking information. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should no t place undue reliance on
forward-looking statements and forward-looking information. The Corporation will not update any
forward-looking statements or forward -looking information that are incorporated by reference
herein, except as required by applicable securities laws.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this news release.