EDM Announces New US$58 Million Gypsum Offtake Agreement
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NEWS RELEASE JUNE 9, 2025
EDM ANNOUNCES NEW US$58 MILLION GYPSUM OFFTAKE AGREEMENT
Halifax, Nova Scotia, June 9, 2025 – EDM Resources Inc. (TSX-V: EDM; FSE: P3Z) (“EDM” or the “Company”) is
pleased to announce that it has entered into a definitive gypsum offtake supply agreement with a large vertically-integrated
gypsum producer and Canadian wallboard manufacturer (“Gypsum Offtaker”) which is valued at approximately US$58
million.
Highlights of the Gypsum Offtake
• Large vertically integrated Gypsum producer and Canadian Wallboard manufacturer who is an arm’s length private
subsidiary of a publicly listed global leader .
• The Gypsum Offtaker has agreed to make an advance payment of US$250,000 for a 5-year exclusivity on Gypsum
produced at the Scotia Mine. The advance payment is unsecured and non-refundable should the Scotia Mine not
commence production before December 31, 2026.
• The Offtake Agreement only represents half the total mineral reserve of Gypsum and is based on projected volumes
over a 10 -year period.
• The Scotia Mine has 5.1 million tonnes of Gypsum as a defined NI 43-101 Mineral Reserve, comprised of Proven
Mineral Reserves of 1,530,000 tonnes with a Gypsum grade of 92.8 percent and Probable Mineral Reserves of
3,650,000 tonnes with a Gypsum grade of 91.4 percent, as disclosed in the 2021 Pre-Feasibility Study of November
16, 2021 (“PFS”) .
• The PFS indicated an expected Gypsum revenue of US$43.9M based on 2021 prices of US$8.60/t for Gypsum.
• The Company has been moving forward to create cash flow streams from minerals beyond the original Zinc and
Lead mineral resource s; all of this points to the robustness of the cash flows at the Scotia Mine.
“We are very pleased to secure the third revenue stream opportunity for our Scotia Mine, which is in addition to the forecast
zinc and lead revenue streams. With the execution of the new Gypsum offtake agreement, the Scotia Mine secures market
rate payment s for at least 2.5 million tonnes of G ypsum .” said, Mr. Mark Haywood, President & CEO.
Gypsum is a soft sulfate mineral composed of calcium sulfate dihyd rate (CaS042H2O), and is an evaporite mineral most
commonly found in layered sedimentary deposits in association with halite, anhydrite, sulfur, calcite, and dolomite.
Gypsum’s main uses include the manufacture of wallboard (crude Gypsum), drywall cement, plaster of Par is, soil
conditioning, and as a hardening retardant in Portland cement. Gypsum is also used in fertilizer, sidewalk chalk, and in
many other specialty products. The average price for crude gypsum in 2024 was US$13.00/tonne (Source: Statistica.com
average price of crude gypsum in the United States) , and is expected to increase due to increasing demand for gypsum
products in North America.
Gypsum and Anhydrite have been produced for exportation in Nova Scotia for over 200 years. Nova Scotia is the world’s
most productive gypsum mining area, and is known for the quality and size of its Gypsum deposits, as well as access to
economical ocean cargo transport. Nova Scotia’s gypsum resources are second to none in North America in terms of quantity
and quality. Annual production, at its peak in 2005, amounted to about 9.6 million tonnes, accounting for more than 90%
of Canada’s total gypsum output. In that year, Canada ranked fourth (by weight) among gypsum-producing nations of the
world. (Source: Nova Scotia Department of Natural Resources and Renewables – Geoscience and Mines Branch ).
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Gypsum Offtake Terms
The Gypsum Offtake Agreement was signed on June 3, 2025 and provides for the sale of 50% of Gypsum and 50% off-
spec Gypsum (and Anhydrite) expected to be permitted and produced at the Scotia Mine, for an initial contract period of 5
years. The Gypsum Offtaker will make an advance payment of US$250,000 for a 5-year exclusivity on Gypsum produced
at the Scotia Mine. The advance payment is unsecured and non-refundable should the Scotia Mine not commence production
before December 31, 2026. There are no penalties if commercialization is not achieved. The Offtake Agreement includes
industry standard payment terms, delivery, quality, warranties, penalty charges and remedies. Either party may terminate
the agreement. The Gypsum Offtaker will pay Gypsum delivered FOB trucks at the Scotia Mine on a take-or-pay contract
basis. No finder’s fees are payable in connection with the Gypsum Offtake Agreement.
Either party pay terminate the Gypsum Offtake Agreement upon the occurrence of uncured breaches of material provisions
of the agreement by the other party which remain uncured after 30 days written notice, upon the occurrence of force majeur
events preventing performance by the non -terminating party which persist for longer than two months, if commercial
production has not commenced by December 31, 2026, or immediately upon the insolvency of the other party. The Gypsum
Offtaker may also terminate if there are defects or shortages in product which are not remedied within 14 days of written
notice to the Company .
The Company is still in the exploration and evaluation stage, has not generated any revenues from operations, and the ability
of the Company to carry out its objectives depends, among other things, on its ability to raise additional financing.
Generating proceeds from the sale of gypsum under the Gypsum Offtake Agreement is subject to the commencement of
production at the Scotia Mine, which is subject to a variety of risks and uncertainties described in “Risk Factors” in EDM’s
management’s discussion and analysis of the Company’s annual financial statements for the period ended December 31,
2024 .
Qualified Persons
Mr. Mark Haywood, B. Eng. (Mining Engineering) Hons, LLB of Scotia Mine Limited and EDM Resources Inc., and a
Qualified Person as defined under NI43-101, has approved the technical information contained in this news release .
About EDM Resources Inc.
EDM is a Canadian exploration and mining company that has full ownership of the Scotia Mine and related facilities near
Halifax, Nova Scotia. Through its wholly owned subsidiary, EDM also holds several prospective exploration licenses near
its Scotia Mine and in the surrounding regions of Nova Scotia.
The Company’s common shares are traded on the TSX Venture Exchange under the symbol “EDM”. For more
information, please contact:
Mark Haywood President & Chief Executive Officer
Arnab De Chief Financial Officer
Manish Grigo Corporate Development
Telephone +1 (902) 482 4481
Facsimile +1 (902) 422 2388
Email & Web info @EDMresources.com & www.EDMresources.com
The Company’s corporate filings and technical reports can be viewed on the Company’s SEDAR+ profile at
www.sedarplus.ca. Further information on EDM is also available on Facebook at
http://www.facebook.com/EDMresources.inc , Twitter at http://www.twitter.com/EDMresources , LinkedIn at
http://www.linkedin.com/company/EDMresources and Youtube at
https://youtube.com/@edmresources?si=Bvyighil3mSoOKnD
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CAUTIONARY STATEMENTS
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release includes certain forward-looking statements which are not comprised of historical facts. Forward-
looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including
words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking
statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “should”, “could”,
“would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events
and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based
on information currently available to the Company, the Company provides no assurance that actual results will meet
management’s expectations. Risks, uncertainties, and other factors involved with forward-looking information could
cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied
by such forward- looking information. Forward-looking information in this news release includes, but is not limited to,
the Company’s objectives, goals or future plans, statements, potential mineralization, exploration and development
results, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of
operations and estimates of market conditions. There can be no assurance that forward-looking statements will prove to
be accurate and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from EDM’s expectations include, among others, the
degree to which mineral resource and reserve estimates are reflective of actual mineral resources and reserves, the degree
to which factors are present which would make a mineral deposit commercially viable, the price of zinc, lead and gypsum,
uncertainties relating to availability and costs of financing needed in the future, changes in equity markets, risks related
to international operations, the actual results of current exploration activities, delays in the development of projects,
conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future
prices of metals, ability to predict or counteract potential impact of COVID-19 coronavirus on factors relevant to the
Company’s business, as well as those factors discussed in the section entitled “Risk Factors” in EDM’s management’s
discussion and analysis of the Company’s annual financial statements for the period ended December 31, 2024. Although
EDM has attempted to identify important factors that could cause actual results to differ materially, there may be other
factors that cause results to be not as anticipated, estimated or intended. 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 not place undue reliance on forward-looking statements.