Montero seeks CAD$ 90,000,000 in Damages from the Tanzanian Government for Expropriation of the Wigu Hill project

Montero seeks CAD$ 90,000,000 in Damages from the Tanzanian Government

for Expropriation of the Wigu Hill project

Toronto, Ontario – July 28, 2022 – Montero Mining and Exploration Ltd. (TSX-V: MON) (“Montero” or the

“Company”) provides an update on its fully funded arbitration proceedings against the United Republic of Tanzania

(“Tanzania”) over the expropriation of the Wigu Hill Rare Earth Element Project before International Centre for

Settlement of Investment Disputes’ (“ICSID”), part of the World Bank group.

Montero submitted its Memorial on the Merits (“Memorial”) to the ICSID arbitral tribunal in May 2022 as per the

time schedule agreed by the parties and the tribunal. The Memorial contains the basis for compensation to Montero

for CAD$ 90 million including interest up until May 2022 , which interest continues to accrue. The damages claimed

are for Tanzania’s unlawful expropriation and mistreatment of Montero’s investment, this is in breach of the

Agreement between the Governments of Canada and Tanzania for the Promotion and Reciprocal Protection of

Investments (“BIT”) signed in 2013.

Dr Tony Harwood, President and CEO of Montero commented: “Montero has submitted a claim to the ICSID for

damages of CAD$ 90 million. The Company ha s made repeated attempts to work with Tanzania n Government to

reach an amicable settlement without success , while t he discovery and development of the Wigu Hill project has

created significant value for Tanzania. We are committed to pursuing fair treatment of our shareholders and a return

on our substantial investment of time and money in Tanzania through a fully funded arbitration process governed by

ICSID, a part of the World Bank.”

Background to Claims

Montero commenced exploration activities on the Wigu Hill Rare Earth Element project in March 2008 under a

Prospecting License and spent over CAD$ 15.5 million on discovery and development of the project. In 2015 a five-

year Retention License was awarded by the Tanzanian Government on the property. The Wigu Hill Retention License

was expropriated by the Tanzanian Government in 20 18 when the Mining (Local Content) Regulations 2018,

cancelled all previously issued Retention Licenses. Since that time Montero has made repeated attempts to reach

an amicable solution with the Government with no success.

Montero filed a request for ar bitration with the ICSID on January 8, 2021. On February 9, 2021, ICSID registered

Montero’s request for the institution of arbitration proceedings to resolve the illegal expropriation matter. The

arbitral tribunal was constituted on November 18, 202 1, with the appointment of the President, and appointees

from Montero and Tanzania.

Montero has retained Mr. Thierry Lauriol of Jeantet AARPI as legal counsel and Dr. Neal Rigby of SRK Consulting (US)

Inc. as quantum expert. Mr. Lauriol is highly experienced i n international arbitration and has an excellent track

record of achieving successful outcomes for clients in Africa. Dr . Rigby has acted in this capacity and as mining and

valuation expert in many international mining disputes that have been resolved through ICSID arbitrations. Montero

also secured dispute funding from Omni Bridgeway, a leading global dispute funder.

Montero is one of a number of companies that have filed arbitration procedures with ICSID against the Government

of Tanzania for the expropriation of Retention Licenses. These include Winshear Gold Corp. with a claim of CAD $

124 million (https://winshear.com) for the loss of the SMP Gold Project and Indiana Resources Limited with a claim

of AUD$ 127 million for the loss of the Ntaka Hill Nickel Project (https://indianaresources.com.au).

Next Steps

According to the arbitral tribunal ’s Procedural Order No 1 dated February 18, 2022 , Tanzania will respond to

Montero’s Memorial by October 2022, after which a new round of written submissions will follow in Q2 and Q3

2023.

For further information, please see the Montero recent press releases (PR134 dated 12 April 2022, PR132 dated 29

November 2021 and PR119 dated 8 January 2021) and the ICSID website:

(https://icsid.worldbank.org/services/arbitration/convention/process/overview ).

Qualified Person's Statement

This press release was reviewed and approved by Mr. Mike Evans, M.Sc. Pr.Sci.Nat ., a qualified person for the

purpose of National Instrument 43 -101. It has also been reviewed by Mr Thierry Lauriol, avocat à la cour (Paris,

France).

About Montero

Montero is a junior exploration company focused on finding, exploring, and advancing globally significant gold, silver,

and base metal deposits in Chile. Montero’s board of directors and management have an impressive track record of

successfully discovering and advancing precious metal and copper projects. Montero t rades on the TSX Venture

Exchange under the symbol MON and has 38,647,485 shares outstanding.

For more information, contact:

Montero Mining and Exploration Ltd.

Dr. Tony Harwood, President and Chief Executive Officer

E-mail: [email protected]

Tel: +1 416 840 9197 | Fax: +1 866 688 4671

www.monteromining.com

Neither 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 release.

CAUTIONARY STATEMENT REGARDING FORWARD -LOOKING INFORMATION: This news release includes certain "forward -looking information"

within the meaning of applicable Canadian securities laws. Forward looking information includes, but is not limited to, statements, projections

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