Mogotes Metals Secures Option to Acquire Advanced Beskauga Copper-Gold-Silver Project Resource-Stage Porphyry Cu-Au-Ag System in Kazakhstan with Near-Surface Higher-Grade Core, District-Scale Exploration Upside and Established Infrastructure
Mogotes Metals Inc.
#401, 217 Queen St. W., Toronto, ON M5V0R2, Canada
T +1(647) 846-3313 | [email protected]
NEWS RELEASE
Mogotes Metals Secures Option to Acquire Advanced Beskauga Copper-Gold-Silver Project
Resource-Stage Porphyry Cu-Au-Ag System in Kazakhstan with Near-Surface Higher-Grade Core, District-Scale Exploration
Upside and Established Infrastructure
February 27, 2026 – Toronto, Ontario – Mogotes Metals Inc. (TSXV: MOG, FSE: OY4, OTCQB: MOGMF)
(“Mogotes” or the “Company”) is pleased to announce that it has entered into a definitive option agreement (the
“Option Agreement”) to acquire a 100% interest in the Beskauga copper-gold-silver porphyry project (the
“Beskauga Project”) located in Pavlodar Province, Republic of Kazakhstan.
Transaction and Project Highlights
• Near-Surface, Potentially Low-Cost: The higher-grade Au-Cu-Ag core of the resource starts at approximately
40 metres below surface, beneath clay overburden, potentially amenable to open-pit mining (Figures 1& 2).
Highlight drill intercepts within the MRE include (Table 2):
◦ BG21001: 957.0m at 0.58 g/t Au, 0.34% Cu, 1.92 g/t Ag from 44m
Incl. 203.0m at 1.12 g/t Au, 0.67% Cu, 3.70 g/t Ag from 48m
◦ BG-033: 751.5m at 0.56 g/t Au, 0.25% Cu, 1.86 g/t Ag from 48.5m
◦ BG-064: 616.2m at 0.46 g/t Au, 0.23% Cu, 1.14g/t Ag from 47.7m
FIGURE 1. Plan of Beskauga Main Gold Block Model and Drill Hole Collars, High Grade Core
FIGURE 2. Cross Section SE Plunging Shoot – Gold Block Model and Cu-Au Drill Intercepts
• Significant Existing Resource: The Beskauga Main deposit has a 2022 National Instrument NI 43-101 (“NI
43-101”) mineral resource estimate6 (MRE) within a conceptual pit shell at a gross metal value (GMV) cut-
off of US$20/t (Table 1):
◦ Indicated: 111.2 Mt at 0.30% Cu, 0.49 g/t Au and 1.34 g/t Ag (containing 333.6 kt Cu, 1.8 Moz Au, 4.8
Moz Ag)
◦ Inferred: 92.6 Mt at 0.24% Cu, 0.50 g/t Au and 1.14 g/t Ag (containing 222.2 kt Cu, 1.5 Moz Au, 3.4 Moz
Ag)
◦ This represents a robust starting-point resource with expansion potential.
• Favourable Deal Terms: Deferred Consideration Under Option Agreement: Mogotes has the right to
purchase a 100% interest in the Beskauga Project with an initial US$2.5 million payment (of which US$1.5
million in cash and US$1.0 million in cash or shares), followed by annual payments of US$1.0 million in
2027, 2028 and 2029, with each payment up to 50% paid in common shares of Mogotes, and a final
payment of US$19.2 million on or before February 8, 2029, for total consideration of US$24.7 million
(US$17.2M in cash and up to US$7.5M of value in common shares of Mogotes).
• Considerable Resource Expansion Potential: Mogotes’ initial analysis suggests the higher-grade
mineralization within the MRE defines a large southeast-plunging shoot that remains open at depth (Figure
2). Post-MRE drilling totalling 18,657 metres in 28 holes has returned significant new mineralised
intercepts extending outside of the 2022 resource, confirming the potential to grow the deposit with
further drilling. Post-resource drilling highlights include (Table 3):
◦ BG21007: 1,124.1m at 0.40 g/t Au, 0.25% Cu, 1.69 g/t Ag from 46m
Incl. 107.0m at 0.68 g/t Au, 0.52% Cu, 3.86 g/t Ag from 50m
◦ BG22015: 955.0m at 0.29 g/t Au, 0.12% Cu, 0.97 g/t Ag from 45m
Incl. 17.0m at 1.05 g/t Au, 0.37% Cu, 1.70 g/t Ag from 337m
FIGURE 3. North-South Cross Section – Gold Block Model and Cu-Au Drill Intercepts
• District-Scale Exploration Upside: The Beskauga Project exploration licence covers a large tenure
package hosting multiple untested porphyry-style magnetic targets with similar geophysical signatures to
the Beskauga Main deposit. The Beskauga Central and Beskauga South prospects, among others, display
magnetic depletion signatures consistent with epithermal alteration within the broader intrusive complex
and have received limited to no modern exploration drilling, representing compelling satellite targets that
could host additional mineralised systems.
• Established Mining Jurisdiction: Kazakhstan is a globally significant mineral producer.
◦ The country is the world’s largest uranium producer (~40% of global output1), a top-10 copper
and gold producer, and holds the 3rd-largest chromite reserves globally2.
◦ Kazakhstan’s new Tax Code (effective January 2026) provides 100% capital deductions for
exploration expenditures and a 0% mineral extraction tax for five years on new sites, reinforcing
its investor-friendly credentials.3
◦ The government targets US$150 billion in foreign direct investment by 2029, and recent legislative
reforms (January 2025) further strengthen protections for foreign investors.4
◦ Since 2020, Rio Tinto, Ivanhoe, Fortescue, BHP (through its Xplor generative exploration
programme), Barrick Mining, First Quantum Minerals and Teck Resources have established
exploration programmes in the country.5 The willingness of these globally significant operators to
deploy capital into Kazakhstan validates both the geological prospectivity and the regulatory and
operating environment of the jurisdiction.
• Highly Developed Infrastructure: The Project is located approximately 370 km from the national capital,
Astana, and 70 km south-west of the provincial capital, Pavlodar, within the heart of Kazakhstan’s mining
and heavy industry belt. Established rail and sealed national highway infrastructure lie within 20 km, a
1,100 kVA powerline traverses the project7, and the region hosts a skilled workforce and large-scale Cu-Au
mining operations including the Bozshakol mine (1.1Bt at 0.34% Cu and 0.16 g/t Au)9 (Figures 4 & 5).
FIGURE 4. Beskauga Project and Infrastructure
FIGURE 5. Overview of Porphyry projects in Kazakhstan9
• Favourable Metal Price Environment: Mogotes’ analysis suggests that positive results from post-MRE
drilling, combined with significantly improved metal prices since the 2022 resource estimate was prepared
(the MRE used US$3.50/lb Cu and US$1,750/oz Au versus current prices well above those levels), offer
considerable potential to update and improve the MRE.
• Counter-Cyclical Exploration Calendar: The Beskauga Project exploration season is counter-cyclical to the
exploration season for Mogotes’ Filo Sur project in the Vicuña district, providing potential for year-round
exploration and news flow for the Company.
• Further Updates: Mogotes will provide further technical information on the Beskauga Project in coming
days as the Company prepares for the 2026 exploration season.
CEO Allen Sabet commented:
“The Beskauga Project acquisition marks a transformational step for Mogotes Metals. We have secured the right to
earn a 100% interest in a resource-stage copper-gold-silver project that combines scale, grade, near-surface
mineralisation and district-scale exploration upside – all in a jurisdiction that is increasingly recognised as one of
the most attractive in the world for responsible mineral exploration and development.
With over 200 million tonnes already delineated and a higher-grade core starting at just 40 metres below surface,
Beskauga Project offers a compelling foundation for value creation. The deposit remains open at depth and along
strike, with post-resource drilling confirming that the system extends well beyond the current resource boundary.
Equally exciting, the broader exploration licence hosts multiple untested targets with geophysical signatures
analogous to the main deposit - any one of which could represent a significant new discovery.
Kazakhstan’s combination of favourable geology, established mining infrastructure, competitive operating costs,
and a strengthened investor protection framework makes it an ideal environment for an exploration company of
our size to create outsized value. We are already on the ground preparing for the 2026 field season and look
forward to updating shareholders as we advance our integrated exploration and targeting program”
Strategic Rationale - A Complementary Portfolio
The addition of Beskauga Project is designed to complement the value of Mogotes’ flagship Filo Sur project in the
Vicuña district.
• Filo Sur remains the Company’s primary exploration asset and continues to receive priority funding and
technical focus.
• The Beskauga Project is being acquired under an option structure that preserves the Company’s financial
flexibility: all payments are discretionary and staged over three years, the initial cash outlay is modest
relative to the value of the resource being secured, and a portion may be settled in shares rather than
cash, protecting treasury for Filo Sur drilling programmes.
• Critically, the two projects operate on opposite seasonal calendars - the Kazakh field season runs during
the Northern Hemisphere summer while Filo Sur’s high-altitude Andean season is concentrated in the
Southern Hemisphere summer - allowing Mogotes’ technical team and management bandwidth to be
deployed year-round without competing for the same resources.
• The Beskauga Project cost of drilling is expected to run approximately US$100 per metre drilled, allowing
a small investment in exploration budget to go a long way.
• For shareholders, this means continuous exploration newsflow, reduced single-asset concentration risk,
and a second pathway to value creation through a resource-stage deposit with near-term development
optionality, all achieved with relatively low cost of operation and option payments in the first years.
Summary of Option Agreement Terms
Pursuant to the Option Agreement, Mogotes, through its wholly-owned subsidiary Mogotes Metals Kazakhstan Inc.
(the “Optionee”), has been granted the sole and exclusive option to acquire 100% of the participating interests in
Dostyk LLP (the “Target Company”), a Kazakh limited liability partnership that holds the Beskauga Project
exploration licence, from Copperbelt AG (the “Optionor”). Key terms are summarised below:
• Option Consideration: Total payments of US$24.7 million comprising US$17.2 million in cash payments
(“Cash Only Amounts”) and US$7.5 million payable in cash or Mogotes common shares at the Optionee’s
election (“Eligible Amounts”).
• Payment Schedule:
◦ US$2.3 million within two business days of execution (US$1.3 million cash, US$1.0 million in cash
or shares).
◦ US$1.0 million on January 1, 2027 (US$500,000 cash, US$500,000 in cash or common shares)
◦ US$1.0 million on January 1, 2028 (US$500,000 cash, US$500,000 in cash or common shares)
◦ US$1.0 million on January 1, 2029 (US$500,000 cash, US$500,000 in cash or common shares)
◦ US$19.2 million on or before February 8, 2029 (US$14.2 million cash, US$5.0 million in cash or
common shares)
• Share Pricing: The common shares issued in satisfaction of Eligible Amounts are priced at the greater of:
(i) the 20-day VWAP ending on the last trading day prior to the election notice; and (ii) the market price on
the execution date subject to a discounted market price of C$0.48 per share and TSXV approval.
• Minimum Expenditure Commitments: The Optionee must incur or fund minimum exploration expenditures
totalling US$860,000 over the Option Period.
• Mining Licence: The Optionee will prepare a Mining Licence application for submission by January 1,
2027.
• Discretionary Payments: All option payments and expenditure commitments are at the sole discretion of
the Optionee. The Optionee may accelerate payments at any time without penalty.
Location and Previous Exploration Summary
The Beskauga Project is located in Pavlodar Province in the north-east of the Republic of Kazakhstan,
approximately 370 km from the national capital, Astana. The Pavlodar provincial economy is largely driven by
mining and heavy industry, including large-scale open-pit and underground mining. The Beskauga Project is
located 70 km south-west of the provincial capital and is well serviced by established infrastructure, with the
project located within 20 km of rail and sealed national highway. A 1,150 kVA powerline also traverses the project7
(Figure 4).
Kazakhstan sits within the Central Asian Orogenic Belt (CAOB), one of the world’s most richly mineralised
metallogenic domains. The CAOB hosts numerous porphyry copper-gold deposits8. The Beskauga Project is
situated in the same geological terrane as the Bozshakol and Aktogai porphyry copper-gold operations, among
others, underscoring the district’s prospectivity.
The Beskauga Project area is covered by up to 40 m of post-mineral clay overburden. As a result, pre-discovery
exploration was driven by project-scale IP geophysics and magnetics, wide-spaced grid-based KGK drilling (similar
to “wet” reverse circulation drilling) through cover to collect basement geochemistry and geology samples.
Exploration drilling of anomalies generated by this process led to the discovery of the Beskauga Project deposit in
2007. For a detailed exploration and company ownership history of the project please see the NI 43-101 report6.
Mogotes is undertaking an integrated reprocessing and targeting programme of the Beskauga Project ahead of the
Kazakh field season and will provide a technical update on the Project in the coming weeks. The Company has
commenced engaging a local team and service providers to advance the 2026 programme at the Beskauga
Project.
TABLE 1. Mineral Resource Estimate for the Beskauga Main Project6
TABLE 2. Beskauga Select Intercepts From Drilling, from Drill Holes used in Mineral Resource Estimate6
TABLE 3. Beskauga Select Intercepts From Drilling Completed Post Mineral Resource Estimate
References
1 World Nuclear Association, “Uranium and Nuclear Power in Kazakhstan”, world-nuclear.org (accessed February 2026).
2 MINEX Kazakhstan 2024 Forum, “Shifting Dynamics in Kazakhstan’s Mining and Metals Industry”, 2024.minexkazakhstan.com.