Itafos - News Release - Jan 27
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Itafos - News Release - Jan 27
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TSX-V: IFOS, OTCQX: ITFS
News Release
ITAFOS COMPLETES UPDATED PRELIMINARY ECONOMIC ASSESSMENT FOR THE ARRAIAS PHOSPHATE PROJECT
HOUSTON, TX – January 27, 2026 – Itafos Inc. (TSX-V: IFOS) (OTCQX: ITFS) (the “Company”) is pleased to announce the results of
the updated Preliminary Economic Assessment (“PEA”) for its Arraias Phosphate Project (the "Arraias Project"), a phosphate mine project
located in Tocantins, Brazil.
Arraias Project 2026 PEA Highlights
Targeting high grade phosphate rock layers in breccia and conglomerate
Four individual deposits at the Arraias Project were evaluated for Mineral Resources: Domingos, Cana Brava, Coite, and Near
Mine
2 Mt Measured and Indicated Resource plus 3 Mt Inferred Mineral Resources including:
o Measured Mineral Resources include 1.1 Mt of breccia at an in-situ grade of 17.7% P 2O5 and 0.5 Mt of conglomerate
at an in-situ grade of 12.1% P2O5.
o Indicated Mineral Resources include 0.4 Mt of breccia at an in-situ grade of 16.4% P2O5 and 89,000 t of conglomerate
at an in-situ grade of 11.6% P2O5.
o Inferred Mineral Resources for the four deposits includ e 2.4 Mt of breccia at an in-situ grade of 15.4% P2O5 and 0.6 Mt
of conglomerate at an in-situ grade of 12.0% P2O5.
Itafos has been successfully mining breccia and conglomerate at the Domingos deposit since 2023 and selling a direct
application product (“DAPR”) as well as a partially ac idulated product (“PAPR”). The PEA mine plan includes continued
production of DAPR and PAPR, as well as processing the breccia to produce single superphosphate (“SSP”).
An estimated $8.0 million USD in capital expenditures will be required for beneficiation plant upgrades enabling the productio n
of SSP. The life-of-min e plan for the currently estimated resources is approximately 14 year s with an estimated after-tax net
present value ("NPV") 8% of $70.7 million USD, internal rate of return (IRR) of 85%, and payback period of around 2 years.
CEO Commentary
Chief Executive Officer David Delaney commented, “Itafos is pleased with the results of this PEA and believes it supports our f ertilizer
restart strategy at the Arraias Project. The results of this study point towards a project with robust economics and allow us to proceed to
the next stages of project development. Further exploration work will be focused on increasing resources and mine life.
Over the last four years, Itafos Brazil has focused on developing the market for its blend of non-traditional fertilizers and 2025 marked a
record year of profitability at Arraias. 2026 will represent a period of transition as we move to upgrade the beneficiation circuit in order to
produce SSP, with the goal of selling this product into the large and growing Brazilian market during 2027.”
Arraias Project Preliminary Economic Assessment
A technical report, entitled "NI 43-101 Technical Report Prelimina ry Economic Assessment Arraias Phosphate Operations, Tocantin s,
Brazil" (the "Arraias PEA") was prepared for the Company by WSP Canada Inc. (“WSP”) in accordance with National Instrument 43-101
- Standards of Disclosure for Mineral Projects ("NI 43-101"). T he Report was prepared to summarize the results of the PEA and
consolidate all project work to date. WSP was supported by Millcreek Engineering.
Data Verification
The Mineral Resource Qualified Person (“QP”), Jennifer Simper, P.Geo. considers sample preparation, analytical, and security protocols
employed by the Arraias Project to be acceptable. The QP has reviewed the QA/QC procedures used by the Company including the use
of certified reference materials, blank, duplicate, and umpire data, and considers the assay database to be adequate for Mineral Resource
estimation. The QP also carried out data verification both on site and on the database. This included a review of the assay database and
collar locations. The QP considers the assay database to be accept able for Mineral Resource estima tion. In addition, there are no
identified significant factors or concerns regarding the accuracy and reliability of the results from the exploration programs in the Arraias
Project area.
Arraias Project Mineral Resource Estimate
The Arraias Project’s current Mineral Resource estimate, as show n in Table 1, was completed by WSP and has an effective date of
November 14, 2025. The QP is not aware of any material changes between the November 14, 2025, effective date of the Mineral
Resource estimate and the January 27, 2026 publication date of t his news release that would affect the resource model or Minera l
Resource estimate. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability at this time.
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Table 1: Mineral Resource Statement, Arraias Phosphate Deposit, November 14, 2025
Notes:
1. The Mineral Resource estimate was c onstrained by a conceptual pit shell for t he purpose of establis hing reasonable prospects of eventual
economic extraction based on potential mining, processing grade parameters identified by studies performed to date on the Arraias Project.
2. Key constraint inputs included reasonable assumptions for oper ating costs, geotechnical slope parameters, processing costs and recovery, and
specific product pricing.
3. Variable cut-off grades for P 2O5 (wt. %) were assigned by deposit and domain based on sensitivity analyses and target feed grades for Breccia
of 16.0% and Conglomerate of 12.0%. Domingos (Breccia 10.0%, C onglomerate 10.0%), Cana Brava (Breccia 12.5%, Conglomerate 9.5%) ,
Coite (Breccia 11.0%, Conglomerate 11.0%), Near Mine (Breccia 12.5%, Conglomerate 8.5%)
4. Bulk density applied to Breccia (2.65 g/cm 3) and Conglomerate (1.45 g/cm3) based on results from the Itafos Arraias internal laboratory.
5. Tonnage estimates are rounded to the nearest 10,000.
6. Mt = Million tonnes; wt. % = weight percent.
7. Mineral Resources are reported in accordance with NI 43-101 and CIM Definition Standards for Mineral Resource and Mineral Reserves (2014)
and CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (2019). .
8. No mining recovery or dilution factors have been applied.
9. Mineral Resource estimates are not pr ecise calculations and may be materially affected by data quality, geological variabili ty, metallurgical
recovery, and the economic assumptions used to assess reasonable prospects for extracti on. They are also influenced by the esti mation
methodology and parameters applied, including outlier treatment a nd search or estimation strat egies.. . All figures are rounded to reflect the
relative accuracy of the estimates.
Mining Methods
The phosphate rock is mined by a free-dig, multiple-bench, open-pit, haul-back mine using excavators and trucks. Mining will be
accomplished using conventional loader, excavator, and truck materials handling operation. Overburden excavation will advance ahead
of the phosphate rock extraction in maximum 5 m height production benches.
Currently, the Domingos deposit is the only pit in operation. The Life of Mine Plan includes ongoing mining of Domingos while b lending
in material from the other deposits to achieve the desired plant feed grade. The C ana Brava deposit will be opened first, to be followed
by Coite, and then the Near Mine deposit. The 14-year Life of Mine Plan includes production of approximately 630,000 tonnes of DAPR,
760,000 tonnes of PAPR, and 2.3 Mt of SSP.
Metallurgy and Processing
The mineral processing facilities for the Arraias Project are designed to treat breccia from the Arraias mineral deposit. The primary product
will be phosphate concentrate, which will be further processed for fertilizer manufactu re. The unit operations in the breccia p rocessing
will include: primary crushing, screening, grinding, cyclone classification, column flotation, concentrate handling, and tailings handling.
Domain Deposit Classification Mass
(Mt)
P2O5
(wt. %)
Al2O3
(wt. %)
CaO
(wt.%)
MgO
(wt. %)
Fe2O3
(wt. %)
Measured 1.11 17.74 4.81 22.58 0.68 2.35
Indicated 0.13 15.82 3.36 16.43 0.68 1.64
Coité Indicated 0.27 16.70 4.94 22.41 1.02 2.24
Measured + Indicated 1.51 17.39 4.70 22.01 0.74 2.27
Domingos Inferred 0.68 14.46 3.21 14.19 0.92 1.50
Cana Brava Inferred 0.88 15.84 6.68 23.63 0.87 2.46
Coité Inferred 0.32 15.27 6.51 22.22 0.99 2.77
Near Mine Inferred 0.50 16.00 6.46 23.35 2.43 3.08
Inferred 2.37 15.40 5.62 20.69 1.23 2.36
Domain Deposit Classification Mass
(Mt)
P2O5
(wt. %)
Al2O3
(wt. %)
CaO
(wt.%)
MgO
(wt. %)
Fe2O3
(wt. %)
Measured 0.46 12.10 5.23 18.68 1.94 3.48
Indicated 0.06 11.19 6.95 16.53 1.36 3.48
Coité Indicated 0.03 12.27 4.59 15.59 0.67 2.48
Measured + Indicated 0.55 12.02 5.36 18.27 1.80 3.42
Domingos Inferred 0.01 10.71 5.32 10.23 0.63 2.30
Cana Brava Inferred 0.47 12.00 8.99 16.98 0.89 3.29
Near Mine Inferred 0.08 12.09 7.76 17.57 0.88 3.50
Inferred 0.56 11.99 8.76 16.98 0.88 3.31
Conglomerate
Breccia
Domingos
Domingos
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Phosphate rock will be hauled from the mine to the concentrator, where it will be dump ed into the primary crusher feed bin. An apron
feeder will move the rock onto a vibrating grizzly, separating undersized material from oversize. Oversize will be crushed furt her, and
both fractions will be conveyed to a stockpile.
Rock from the stockpile will be reclaimed and sent to a screening tower. A new transfer point will divert material for additional screening
and crushing before entering the auxiliary mill. Oversize will be crushed to finer sizes, and all material will be classified by a hydro-cyclone,
separating fines (-106 µm) from coarser fractions.
Coarse breccia (+106 µm) will be milled to achieve 90% passing 106 µm. The resulting slurry, combined with cyclone fines, will be
conditioned with reagents and pH modifiers to prepare for flotation.
The flotation circuit will include rougher and cleaning stages to produce concentrate. A scavenger stage will recover additiona l
concentrate. Dewatering will be performed us ing a plate and frame filter, with water recycled for process use. The final produc t will be
conveyed to a storage stockpile. Tailings will also be dewatered and stored via a radial stacker.
Project Infrastructure
Plant and administrative buildings are in place including a workshop, central warehouse, scale, administrative office, ambulance and fire
brigade building, restaurant, locker room, and laboratory. Electrical power is supplied to the main substation via a 60 kV transmission line
spanning 16 km from the substation in Campos Belos. Freshwater is gravity fed from a reservoi r located Northeast of the benefic iation
plant. A single overburden storage area is located to the west of the existing Domi ngos pit and access roads are available conn ecting
the 4 deposits to the main administrative facility and beneficiation plant.
A tailings dam was constructed on the Bezerra River to dispose of tailings from the phosphate beneficiation plant as part of th e original
tailings management plan. The proposed plant upgrades include a filter press for dewatering which will allow the tailings to be dry-stacked
rather than held in an impoundment. As a result, the existing tailings impoundment will be maintained in a care and maintenance status,
with no further deposition of tailings planned within the facility.
Capital Cost Estimate
The capital cost for the Arraias Project is primarily related to beneficiation and tailings disposal. The existing beneficiatio n plant was
designed to process the arenoso and argiloso siltstones and requires retrofitting to process the breccia and produce concentrate for SSP
production. The Arraias Project is also im plementing a dry stack tailings system to e liminate the need to ex pand the existing t ailings
storage facility. The overall cost of the beneficiation plant retrofit and dry stack tailings system is approximately $8.0 million USD.
A nominal amount of $3.5 million USD per year was included in the budget as sustaining capital. This allocation is intended to cover the
ongoing costs associated with replacements and rebuilds of both plant and Itafos-owned equipment. As the project advances beyond the
PEA stage, it will be necessary to develop a more detailed sustaining capital schedul e and budget through evaluation of equipme nt
lifecycles, anticipated replacement intervals, and specific rebuild requirements for plant and mine assets.
Operating Cost Estimate
Currently, mining at the Domingos pit is per formed under a mining contract and these cont ract mining costs represent the bulk o f the
mine operating costs. Cash operating costs include operating and maintenance labor, s upplies, repair parts, power, overheads an d
administration, government levies, and miscellaneous costs. The operating costs are summarized in Table 2.
Table 2: Operating Cost Estimate Summary
Description Value Unit
Variable
Phosphate Rock Mining (Contract Miner) 1.68 $/tonne mined
Phosphate Rock Mining (Owners' Cost) 0.19 $/tonne mined
Overburden Mining (Contract Miner) 0.43 $/tonne mined
Rehandle (Contract Miner) 0.19 $/tonne rehandled
Processing Cost
DAPR 36.22 $/tonne product
PAPR 74.42 $/tonne product
SSP 118.28 $/tonne product
Fixed
Mining 510,000 $/year
Processing Cost 2,560,000 $/year
Other 4,340,000 $/year
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Economic Analysis
The results of the economic analysis presen ted here represent forward-looking informati on as defined under Canadian securities law.
The results are subject to several known and unknown risks, uncer tainties, and other factors that may cause actual results to d iffer
materially from those presented here. See the section titled "Forward-Looking Information" below for further details. Salient financial data
for the Arraias Project is shown in Table 3.
Table 3: Preliminary Economic Analysis Summary
The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral
resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the preliminary economic
assessment will be realized.
A sensitivity analysis was conducted on the after-tax NPV of the project using the following variables: product sales price, operating cost,
and total capital cost. The analysis revealed that the project is most sensitive to changes in pr oduct sales price. The results of the
sensitivity analysis are presented graphically in Figure 1.
Figure 1: Arraias Project Sensitivity Analysis
Total Waste 30,449
Total Breccia + Conglomerate 4,981
DAPR Production 630
PAPR Production 760
SSP Production 2,255
Initial CAPEX 11,500
Sustaining CAPEX 49,000
Project Cash Flow excluding
Capital 184,519
Cash Flow 124,019
NPV 8.0% Discount Rate 70,667
Economic Analysis Summary
2026 - 2040
000s USD
000s tonnes
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Environmental and Permitting Considerations
An Environmental and Social Impact Assessment for the Itafos Arra ias site was prepared in 2010 and submitted to the environment al
agency of the state of To cantins (“Naturatins Environmental Agency”) as par t of the environmental permitting process to obtain the
preliminary license. The site currently holds the licenses required for operating at the current configuration. All permits were still valid at
the time this news release was prepared or had its renewal applicat ion filed in the Naturatins En vironmental Agency within the legal
deadline; according to the Brazilian legislation, in the latter case the permits are still valid until a final decision of the Naturatins
Environmental Agency is provided.
Risks and Opportunities
Costs have been estimated to +50% /-30%, a level of accuracy suit able for a PEA. Overall economic risks include financing, cost of
production increases, escalation, inflation, commodity sales price variability, and general global economic conditions. General technical
risks include reliance on RC drilling in some areas, geotechnical unc ertainties, dewatering and heavy inflow of surface water d uring the
rainy season, reduction in mining recovery, reduction in processing recovery when scaling up from bench scale testing.
Recommendations
It is recommended to continue developing the project through miner al resource infill drilling and expansion, and more advanced mining
studies to support further investment dec isions. Analysis of the results of the PEA suggests numerous recommendations for furth er
investigation to mitigate risks and/or improve the base case designs. Costs associated with future recommendations are included within
the Arraias Technical Report.
Recommended work for the next phase, based on the PEA, includes:
Conduct exploration diamond drilling to further delineate hi gh grade areas identified during correlation and geological modeling.
Conduct infill drilling to upgrade inferred mineral resources to indicated or measured mineral resources. Drilling should include
twinning of some historical drill holes in of Cana Brava, Coite and Near Mine deposits.
Collect additional density samples across each deposit area for breccia and conglomerate unit.
-$20,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
-25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25%After Tax NPV ($000s USD)
Change in Input (%)
OPEX CAPEX Product Selling Price
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Quantify appropriate modifying factors to c onvert mineral resources to mineral reserves.
Conduct additional phosphatic breccia testing to determine if lower feed grades can yield a 28% P 2O5 concentrate.
Conduct additional phosphatic conglomerate testing to determine if conglomerate with a minimum 12% P 2O5 grade can be used
to produce a concentrate with 28% P2O5.
Recent mining activity has revealed t hat the breccia from Domingos is displa ying increased hardness and a higher degree of
apatite crystallization. Comparat ive flotation testing is recommended to determi ne whether this harder rock type will perform
similarly to the materials tested previously.
Identify and quantify mining fact ors which will increase historical contract mining costs, such as higher overburden removal and
storage costs, longer truck haulage requirements, and pit dewatering requirements.
Arraias Technical Report and Qualified Persons
The Arraias Technical Report, prepared in accordance with NI 43- 101, will be filed on SEDAR+ ( www.sedarplus.ca) within 45 days.
Readers are encouraged to read the Arraias Technical Report in its entirety once it is available, including all quantifications, assumptions,
and exclusions that relate to the PEA. The Arraias Technical Report is intended to be read as a whole, and sections should not be read,
or relied upon, out of context.
Scientific and technical information contained in this news release was verified by:
Jennifer Simper, P.Geo., WSP Canada Inc., Geology and Mineral Resources
Terry L. Kremmel, P.E., WSP USA Inc. Mining Methods and Economic Analysis
Rainer Stephenson, P.E., Millcreek Engineering, Mineral Processing and Metallurgical Testing
Each of these persons are independent qualified persons as defined by NI 43-101 for the Arraias Project. Each of these qualified persons
has reviewed and approved the respective scientific and technical disclosure on the Arraias Project contained in this news release.
Further information about the Arraias Project, including a descripti on of the key assumptions, par ameters, description of sampl ing
methods, data verification and QA/QC programs, methods relating to resources and reserves and factors that may affect those estimates
will be contained in the Arraias Technical Report.
About Itafos
The Company is a phosphate and specialty fertilizer company with businesses and projects spanning three continents:
Conda – a vertically integrated phosphate fertilizer business lo cated in Idaho, US, with the following production capacity:
- approximately 550kt per year of MAP, MA P with micronutrients, superph osphoric acid, merchant grade phosphoric acid and
ammonium polyphosphate
- approximately 27kt per year of hydrofluorosilicic acid
Arraias – a vertically integrated phosph ate fertilizer business located in Tocantins, Brazil, with the following production capacity:
- approximately 500kt per year of SSP and SSP with micronutrients
- approximately 40kt per year of excess sulfuric acid (220 kt per year gross sulfuric acid production capacity)
Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau; and
Santana – a vertically integrated hi gh-grade phosphate mine and fertilizer plant project located in Pará, Brazil
The Company is a Delaware corporation headquartered in Houston, Texas. The Company’s shares trade on the TSX-V under the ticker
“IFOS”. The Company’s shares also trade in the US on the OTCQX® Best Market (“OTCQX”) under the ticker symbol “ITFS”. The
Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”). CLF is an affiliate of global private investment firm Castlelake,
L.P.
For more information, or to join the Company’s mailing list, please visit www.itafos.com.
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Forward-Looking Information
Certain information contained in this news release constitutes forward-looking information, including statements with respect to: the
successful development of the Arraias Project; the Company’s planned operations; capital expenditures; upgrading the beneficiation
circuit; operating costs; sustaining capital requirements; pre-tax and post-tax NPV, IRR, and payback period, and sensitivity analyses;
cash flows; estimates of mineral resources; development of mineral resources; regulation of mining operations; realization of mineral
resources estimates, including whether mineral resources will ever be developed into mineral reserves; timing and amount of future
production; expected results of testing of mineral resources and related materials; expected outcome and timing of permit applications
and other environmental and social matters; expected expenditures to be made by the Company; timing, cost, quantity, capacity and
product quality of production of the Arraias Project; and the ability to achieve capital cost efficiencies. All information other than
information of historical fact is forward-looking information. Statements that address activities, events or developments that the
Company believes, expects or anticipates will or may occur in the future include, but are not limited to, statements regarding estimates
and/or assumptions in respect of the Company’s financial and business outlook are forward-looking information. The use of any of the
words “intend”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “would”, “believe” and “potential”
and similar expressions are intended to identify forward-looking information.
The forward-looking information contained in this news releas e is based on the opinions, assumptions and estimates of managemen t,
some of which are set out herein, which management believes are reasonable as at the date the statements are made. Those opinions,
assumptions and estimates are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could
cause actual events or results to differ materially from those projected in the forward-looking information. These include the Company’s
expectations and assumptions with respect to the following: commodity prices; operating results; safety risks; changes to the Company’s
mineral resources; risk that timing of expected permitting will no t be met; changes to mine development and completion; foreign
operations risks; changes to regulation; environmental risks; the impact of weather and climate change; risks related to asset retirement
obligations, general economic changes, including inflation and fore ign exchange rates; the actions of the Company’s competitors and
counterparties; financing, liquidity, credit and capital risks; the loss of key personnel; impairment risks; cybersecurity risks; risks relating
to transportation and infrastructure; changes to equipment and su ppliers; concentration risks, adv erse litigation; changes to p ermitting
and licensing; geo-political risks; loss of land title and access rights; changes to insurance and uninsured risks; the potential for malicious
acts; market and stock price volatility; changes to technology, innovation or artificial intelligence; changes to tax laws; the risk of operating
in foreign jurisdictions; the risks posed by a controlling shareholder and other conflicts of interest; risks related to reputational damage,
the risk associated with epidemics, pandemics and public health; the risks associated with environmental justice; and any risks related
to internal controls over financial reporting risks. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions is
not exhaustive.
Although the Company has attempted to identify crucial factors that could cause actual actions, events or results to differ materially from
those described in the forward-looking info rmation, there may be other fa ctors that cause actions, events or results not to be as
anticipated, estimated or intended. Additi onal risks and uncertainties affecting the forw ard-looking information contained in t his news
release are described in greater detail in the Company’s Annual Information Form and current Management’s Discussion and Analysis
available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.itafos.com. There can
be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such information. The reader is cautioned not to place undue reliance on forward-looking information. The Company
undertakes no obligation to update forward-l ooking statements if circumst ances or management’s estimates, assumptions or opinions
should change, except as required by applicable securities law. The forward-looking information included in this news release is expressly
qualified by this cautionary statement and is made as of the date of this news release.
This news release contains future-oriented financial information and financial outlook information (together, “FOFI”) about the Company’s
prospective results of operations. FOFI is subject to the same assumptions, risk fact ors, limitations and qualifications as set forth in the
above paragraph. The Company has included the FOFI to provide an outlook of management’s expect ations regarding anticipated
activities and results, and such information may not be appropriate for other purposes. The Company and management believe that the
FOFI has been prepared on a reasonable basis, reflecting management’s reasonable estimates and judgements; however, actual results
of operations and the resulting financial results may vary from the amounts set forth herein. Any financial outlook information speaks only
as of the date on which it is made and the Company undertakes no obligation to publicly update or revise any financial outlook information
except as required by applicable securities laws.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-
V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Contacts:
For Investor Relations:
Matthew O’Neill
Executive Vice President & Chief Financial Officer
713-242-8446
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For Media:
Alliance Advisors IR
Fatema Bhabrawala
Director, Media Relations
647-620-5002
Cautionary Note Regarding Mineral Resource Estimates
This news release uses Mineral Resource classification terms t hat comply with reporting standards set forth in NI 43-101 for al l public
disclosure of scientific and technical information concerning mineral projects by Canadian registered issuers. NI 43-101 standards differ
significantly from standards set forth by the United States Securities and Exchange Commission (“SEC”). Therefore, information regarding
mineralization presented herein may not be di rectly comparable to similar information disclosed by companies in accordance with SEC
standards. The reader is cautioned not to assu me that any part or all of the Mineral Resources identified as “Mineral Resources ,”
“Measured Mineral Resources,” “Indicated Mineral Resources” and “Inferred Mineral Resour ces” in this news release will ever be
converted into Mineral Reserves as defined in NI 43-101, be upgraded to a higher category, or be economically or legally mineable.