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American Pacific Provides Palmer VMS Project Update

Corporate Updates

American Pacific Provides Palmer VMS Project Update

Vancouver, British Columbia / August 8, 2023 – American Pacific Mining Corp (CSE: USGD / OTCQX: USGDF

/ FWB: 1QC) (“American Pacific” or the “Company”) is pleased to provide an update on the ongoing

activities at its Palmer Project (“Palmer” or the “Project”) near Haines, Alaska, US.

Palmer is an advanced-stage, high-grade volcanogenic massive sulphide-sulphate deposit (“VMS”) located

in the Porcupine Mining District of the Haines Borough, Alaska. Constantine North Inc (“Constantine”), a

subsidiary of American Pacific, is the operator for the Project and the US$25.5 million 2023 program is

funded by joint venture partner Dowa Metals & Mining Co., Ltd (“Dowa”).

“Drilling progress is ahead of schedule, and we are pleased to report that semi -massive and massive

sulphide mineralization has been observed over drilled thicknesses of approximately 40 metres within the

upper (Zone 1) and lower (Zone 2 -3) VMS lenses of the Southwall Zone at the Palmer Deposit,” stated

Warwick Smith, CEO of American Pacific.

Plate 1: (left) Native copper in drillhole CMR23-152 at 177.6 m downhole (Southwall Zone 1).

Plate 2: (right) Massive sphalerite from CMR23-153 at 156.9 m downhole (Southwall Zone 1).

Highlights:

• 4,178 metres (“m”) of the planned 9,000 m resource definition program has been drilled

representing 46% of the planned 2023 program.

• 1,022 m of the planned 2,550 m geotechnical drill program has been drilled, representing 40% of

the planned program . Hydrogeologic testing and monitoring well installations are ongoing to

determine the hydrogeological characteristics and rock mechanics of the hanging wall and footwall.

• The fi rst 378 samples for assays were recently shipped to the laboratory with results expected

during Q3, 2023.

Program Goals and Drill Program Overview:

One of the 2023 program goals is to build the foundation of people, infrastructure, and resources needed

to operate through the advanced exploration and evaluation stages and complete feasibility -level

engineering studies on the Project in the coming years.

“The 2023 field season started with snow clearing along Porcupine Road, providing construction access for

a safe and modern 60-person camp, scheduled for occupancy in August. The addition of these facilities is a

major milestone and will support an ex panded field season, year -round environmental monitoring and

maximize productivity going forward, ” commented Peter Mercer, VP of Advanced Projects for American

Pacific.

The 2023 diamond drill program is targeting high-priority areas in two unique mineralized lenses, which

make up the Southwall Zone of the Palmer deposit. The knowledge gained from this program will provide

insights to support feasibility-level studies of the Palmer deposit and future discovery focused drilling

throughout the mineralized district. Two diamond drill rigs dedicated to the infill drill program have collared

14 holes, with good productivity and 46% of the program now complete. The third diamond drill rig, focused

on hydro-geotechnical drilling in the immediate deposit area, has collared five holes, to date.

The 2023 drilling builds upon the Company’s confidence in the current geologic modeling of the VMS lenses

within the Southwall Zone, while gaining valuable geotechnical insight into the surrounding wall rock.

Figure 1: Oblique view of the planned 2023 drill program at the Southwall Zone with topography.

Infill drillholes shown in white and grey; Geotechnical drillholes shown in pink.

Logging of drill core from Southwall Zone 1 indicates massive and semi-massive sulphide mineralization up

to 43 m in drilled thickness and defined by a sphalerite -rich eastern limb , a chalcopyrite -rich core and

increasing pyrrhotite-pyrite mineralization through the centre of the lens. Drilling will continue to test the

western portion of Zone 1 and the extent of the mineralization.

Directional drilling of Southwall Zone 2-3 has provided insight into the structural complexity of the deposit

at depth, allowing for precision targeting of desired intersections. Two distinct sphalerite -chalcopyrite-

pyrrhotite-barite massive sulphide horizons have been visually identified through c ore logging at

approximately 39 m in drilled thickness.

In addition, o ngoing analysis of historic al geochemical data continues to highlight areas with high-grade

potential near the Southwall Zone.

Team and Safety

The Company is building the team and facilities to fully evaluate the Palmer Project over the next several

years. This year's field program is being executed with 41 direct employees, 11 are year-round and 30 are

full-time until late October. The Company has built a hi gh-performing team, adding a Human Resources

Manager, Financial Controller, Health and Safety Superintendent, Site Manager, Exploration Manager and

several technical experts. The Project's ongoing hazard awareness and risk reduction focus will continually

aim for industry-leading safety performance. The Company’s safety record has remained excellent, with

zero reportable lost time injuries to date.

Environmental Programs

An important part of Palmer’s 2023 programs is broadening the understanding of environmental conditions

in and around the Project area. The environmental team has been planning baseline studies to properly

evaluate new areas for potential infrastructure. These studies include wetland mapping, noise monitoring,

measuring ambient light, and fish and wildlife surveys.

A continued priority for the environmental team is ensuring Palmer’s environmental studies and monitoring

provide community confidence in the Project above and beyond regulatory compliance.

Geotechnical Studies

The 2023 geotechnical program will be focused on data acquisition to evaluate potential locations for

Project infrastructure. The company has been working with contractors to be field ready marking the

beginning of a multi-year effort to evaluate infrastructure locations and design. Overall, the focus of these

programs will be to identify the best location possible for site infrastructure from multiple perspectives,

allowing the Company to design the best project for the region.

Figure 2: Massive chalcopyrite-pyrrhotite-pyrite in directional

hole CMR23-157-01, Lower Southwall Zone 2-3.

Figure 3: Banded sphalerite-pyrite-chalcopyrite-barite in hole

CMR23-155, Southwall Zone 1.

Qualified Person Statement

The scientific technical information in this news release was reviewed and prepared under the supervision

of Michael Vande Guchte, P .Geo., Vice-President Exploration for the Palmer Project. Mr. Vande Guchte is a

Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Vande

Guchte has verified the data related to the exploration information disclosed in this press release through

his direct participation in the work.

About American Pacific Mining Corp.

American Pacific Mining Corp. is a precious and base metals explorer and developer focused on

opportunities in the Western United States. The Company has two flagship assets : the Palmer Project, a

Volcanic Massive Sulfide (VMS) project in Alaska, under joint -venture partnership with Dowa Metals &

Mining, owner of Japan’s largest zinc smelter ; and the Madison Project, a past-producing copper-gold

project in Montana partnered with Kennecott Expl oration, a division of the Rio Tinto Group. For the

Madison transaction, American Pacific was selected as a finalist in both 2021 and 2022 for ‘Deal of the Year’

at the S&P Global Platts Global Metals Awards, an annual program that recognizes exemplary

accomplishments in 16 performance categories. Also, in American Pacific’s asset portfolio are three high-

grade, precious metals projects located in key mining districts of Nevada, USA : the Ziggerat Gold project,

partnered with Centerra Gold; the Gooseberry Silver-Gold project; and the Tuscarora Gold-Silver project.

The Company’s mission is to grow by the drill bit and by acquisition.

On behalf of the American Pacific Mining Corp Board of Directors:

Warwick Smith, CEO & Director

Corporate Office: Suite 910 – 510 Burrard Street

Vancouver, BC, V6C 3A8 Canada

Investor relations contact:

Kristina Pillon, High Tide Consulting Corp.

604.908.1695 / [email protected]

Media relations contact:

Adam Bello, Primoris Group Inc.

416.489.0092 / [email protected]

The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its

Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the

adequacy or accuracy of this release.