Element79 Provides Updates on ASM Formalization and Progress Towards Long-Term Surface Rights Access Agreements

Element79 Provides Updates on ASM Formalization and Progress Towards Long-

Term Surface Rights Access Agreements

December 31, 2024 - Vancouver, BC - Element79 Gold Corp. (CSE: ELEM, FSE: 7YS0, OTC: ELMGF)

("Element79 Gold" or "the Company") is pleased to share a summary of progress on Federal -level

Peruvian small scale mining Formalization, a final 2024 update on its negotiations relative to renewing its

surface access rights at its past -producing Lucero mine in Chachas, Arequipa, Peru and a glance at what

to expect into 2025 with this project.

Quick Review of Peru ASM Formalization

By means of a simplified explanation, in Peru, the mineral rights in the country are held by the federal

government and they are leased out to third parties on an annual basis. Separately, as a generalization,

surface rights in and around communities are held by those communities for their use, distribution and

development as the local community sees fit.

Over the past several years, there has been a Federal-level initiative to Formalize ~80,000 REINFO permit

holders ( Translation: Artisanal small -scale production or processing). The Federal objective is to bring

greater order, control, working and operating standards, fair taxation and infrastructure development for the

Artisanal and Small-Scale Mining (ASM) segment of the Peruvian mining industry. REINFO permit holders

that Formalize will be allowed to keep operating.

The Federal deadline for Formalization has shifted several times, with the most recently planned date being

December 31, 2024. Without a final formal structure to enact this change, the Federal Government recently

pushed this Formalization date out to June 30, 2025.

Review of Lucero Mine Social Since Acquisition

Lucero is a past producing mine project (1989 -2005) encompassing 10,813 hectares of contiguous land

located in Chachas, Arequipa, Peru. Element79 Gold Corp completed a full corporate acquisition of Calipuy

Resources Ltd., a private company that held the mineral rights to the Lucero project, as well as a small -

scale production permit (REINFO, permitting underground exploration and production) in June 2022.

Through the end of 2022 and start of 2023, the Company worked with past Chachas administrations (“the

Community”) to obtain access to the Lucero mine and execute two exploration and sampling programs in

2023. [1], [2]

At the end of 2023, the terms of both the former mayor of Chachas and the former head of the local artisanal

miner’s association, Lomas Doradas ended. Past representations from the Community buoyed the

Company’s perspective on the probability of permit re newals through the first half of 2024. However, the

new administration has been slow to enact new permits.

Through 2024, the Company continued with several community-development focused initiatives, opened a

field office in Chachas, and carried out ongoing community efforts with its highly-reputable and well-known

community team, GAE Peru. This intensifying community relations work has helped the Chachas -region

community at large to understand the Company’s vision and ‘we all win together’ mentality.

These efforts yielded a greater-community vote of over 75% approval on October 6th, 2024 to have the local

administration complete long -term surface access contracts with the Company for mutual benefit and

growth as the mine is brought back to commercial production. Large parts of this approval are centered

around the community understanding that there will be greater win -win benefits as Element79 Gold Corp

continues developing the mine to restart productio n. In line with the newly extended deadline for the

formalization of REINFOS is June 30, 2025, Lomas Doradas has requested to formalize 65 REINFO

exploitation contracts with the Company, each with five-year terms.

Since this approval on October 6, 2024, the Company via its community relations team have been meeting

with the Community leadership, and state -level authorities. The Community indicated that its goal was to

have these contracts executed before the end of the year. Despite best efforts and getting closer to final

agreements on terms, the Community has now pushed the completion of the contracts to the next General

Assembly of April 2025.

The Company holds the Lucero Project including the mineral rights to the mine and exploration assets, and

has signed a LOI for exclusive purchase rights to the Tailings as a significant business investment. The

Company maintains their value as a significant opportunity for generating revenue in the near term.

Next Steps

Following guidance from the Company’s field team at GAE, which has spent months in Chachas, holding

face-to-face meetings with the various community leaders and heads of Lomas Doradas, as well as state -

level administration, the Company plans to finalize agreements from both a legal and social perspective.

It has become clear that formally requesting Arequipa GREM (Development for Energy & Mines) and ARMA

(State Environmental body) to act as institutional mediators is required to bring final long-term agreements

between Element79 Gold Corp (via its wholly -owned subsidiary Minas Lucero del Sur), the Chachas

Community, and the Lomas Doradas Association to completion.

It is currently estimated that within the first quarter of 2025, a few mine site visits and two to three mediation

sessions by the GREM team in the same timeline, final agreements will be achieved. The Company is

coordinating with legal counsel for these efforts and looks forward to having these key contracts complete

for the General Assembly in April, as the rainy season ends. After the agreements are completed, the

Company’s core focus would shift to exploration and mining-related matters, preparing for 2025 campaigns

to kick off.

About Element79 Gold Corp.

Element79 Gold is a mining company actively exploring and developing its portfolio of assets, including the

high-grade, past -producing Lucero project in Arequipa, Peru, and properties along the Battle Mountain

Trend in Nevada. The Company also holds an opt ion to acquire the Dale Property in Ontario and is

advancing the Plan of Arrangement spin-out process for its wholly owned subsidiary, Synergy Metals Corp.

For further details on this announcement and the Company’s projects, please visit www.element79.gold.

Contact Information

For corporate matters, please contact:

James C. Tworek, Chief Executive Officer

E-mail: [email protected]

For investor relations inquiries, please contact:

Investor Relations Department

Phone: +1.403.850.8050

E-mail: [email protected]

Cautionary Note Regarding Forward Looking Statements

This press contains "forward ‐looking information" and "forward -looking statements" under applicable

securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the

Company's future performance, business prospects or opportunities that are based on forecasts of future

results, estimates of amounts not yet determinable and assumptions of management m ade considering

management's experience and perception of historical trends, current conditions and expected future

developments. Forward-looking statements include, but are not limited to, statements with respect to: the

completion of the Spin -Out Arrangement, the completion of the Amalgamation, the completion of the

Concurrent Financing, the Company's business strateg y; future planning processes; exploration activities;

the timing and result of exploration activities; capital projects and exploration activities and the possible

results thereof; acquisition opportunities; and the impact of acquisitions, if any, on the C ompany.

Assumptions may prove to be incorrect and actual results may differ materially from those anticipated.

Consequently, forward-looking statements cannot be guaranteed. As such, investors are cautioned not to

place undue reliance upon forward -looking statements as there can be no assurance that the plans,

assumptions or expectations upon which they are placed will occur. All statements other than statements

of historical fact may be forward ‐looking statements. Any statements that express or involve dis cussions

with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or

performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue",

"estimate", "expect", "may", "will" , "project", "predict", "forecast", "potential", "target", "intend", "could",

"might", "should", "believe" and similar expressions) are not statements of historical fact and may be

"forward‐looking statements". \

Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies

of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.