Pacific Bay Announces Sale of Sphinx Property, Critical Minerals Impact at Haskins-Reed and Financing Update

The latest news release from November 18, 2025, provides several corporate updates for Pacific Bay Minerals Ltd.: - Sphinx Property Sale: The company has completed the sale of its Sphinx property claims, a Rare Earth Elements project in British Columbia. No consideration details were provided. - Haskins-Reed Critical Minerals Impact: Tungsten and Bismuth, key commodities at the company's Haskins-Reed property in British Columbia, have been added to Canada's critical minerals list. This designation qualifies exploration expenditures for the Canada Critical Minerals Exploration Tax Credit (CCMETC). The news reiterates historical drilling results from 2011 on the property, including high silver, copper, zinc, and bismuth grades over 13.95 meters. - Weaver Gold Property: The company plans to mobilize an exploration crew to the Weaver Gold property in British Columbia. The release highlights historical drilling results from 1996 and 1975, showing various gold and silver grades over several core lengths. - Financing Update: The final tranche of the non-brokered private placement, previously announced on September 25, 2025, has been extended. The financing aims to raise $200,000 from 2,000,000 flow-through (FT) units at $0.10 per unit (each comprising one FT share and one-half warrant exercisable at $0.15 for 12 months) and $105,000 from 1,500,000 non-flow-through (NFT) units at $0.07 per unit (each comprising one common share and one full warrant exercisable at $0.10 for 12 months). Proceeds are for British Columbia critical mineral projects and general working capital. Conditional TSX Venture Exchange approval has been received, with final acceptance pending. - Pereira-Velho Gold Project (Brazil): The option agreement for the Pereira-Velho gold project in Brazil is still listed as "Pending," with an "UNKNOWN" effective date.

This news release presents a mixed bag of updates, with some positive developments that are offset by ongoing uncertainty.

The sale of the Sphinx property is a positive step towards streamlining the company's asset portfolio, allowing for a more focused approach on its core projects. While the financial details of the sale were not disclosed, divesting non-core assets can reduce holding costs and free up management attention.

The designation of tungsten and bismuth as critical minerals by the Canadian government is a material positive for the Haskins-Reed property. This qualifies future exploration expenditures for the CCMETC, which can significantly reduce the cost of exploration and attract further investment interest in critical mineral projects. This aligns with the company's recent focus on critical minerals in B.C., as evidenced by the crew mobilization to Haskins-Reed announced on September 23, 2025.

The planned mobilization to the Weaver Gold property is a routine update, indicating continued domestic exploration efforts. The historical drilling results provided for both Haskins-Reed and Weaver Gold are a re-statement of existing information and do not represent new discoveries or advancements.

The financing update is a necessary administrative step. The extension of the final tranche of the $305,000 private placement indicates the company is still working to close this financing, which, while small, is crucial for its short-term liquidity and funding its Canadian exploration activities. This financing was initially arranged on September 25, 2025, after a larger $2 million financing intended for the Pereira-Velho project was cancelled on July 2, 2025. The proceeds are explicitly for BC critical minerals projects and general working capital, and not for the Pereira-Velho project, which is a critical point.

The most concerning aspect is the status of the Pereira-Velho gold project in Brazil. This project, previously announced as a "fundamental acquisition" (January 7, 2025) and the reason for a trading halt (January 6, 2025), remains "pending." The company had stated its commitment to closing this acquisition and its expectation of alternative financing on September 25, 2025. However, the current news still shows it in limbo with an unknown effective date. This prolonged uncertainty surrounding what was previously positioned as a pivotal strategic acquisition represents a significant operational and strategic overhang and suggests difficulties in either financing the acquisition or finalizing the definitive agreement. The explicit exclusion of this project from the use of proceeds for the current small financing further underscores the stalled nature of this initiative.

Overall, the positive impact from the critical minerals designation and the property sale is somewhat diluted by the persistent ambiguity surrounding the "fundamental" Brazil acquisition and the company's precarious financial position (very low cash balance of $1,368 as of March 31, 2025). The financing provides a small amount of capital but does not resolve the larger funding needs, especially for Brazil if that project is still pursued.

Pacific Bay Minerals Ltd. (PBM) is a mineral exploration company. Historically, the company held several exploration properties in British Columbia. More recently, the strategic focus shifted significantly with the proposed acquisition of the Pereira-Velho gold project in Alagoas State, Brazil. This project, comprising 11 mineral claims over 14,596 hectares, was intended to be a "fundamental acquisition" and represents a major shift towards gold exploration in an emerging jurisdiction. Historical work on Pereira-Velho includes 6,363 meters of drilling and non-NI 43-101 compliant historical resource estimates (Measured: 23,700 oz Au @ 0.64 g/t; Indicated: 44,200 oz Au @ 0.66 g/t; Inferred: 40,500 oz Au @ 0.60 g/t for oxidized material). Metallurgical tests showed good recoveries for oxidized material (up to 94.8% via column leach). However, the acquisition of this "flagship" project remains pending and unfunded by recent capital raises.

Concurrently, the company maintains and is actively exploring its Canadian assets: - Haskins-Reed Critical Minerals Project (BC, Canada): This project focuses on tungsten, bismuth, silver, copper, and zinc. Recent news highlights the addition of tungsten and bismuth to Canada's critical minerals list, providing potential tax credit benefits. Historical drilling has shown significant grades, including 2.01% WO3 over 3.3 meters and 102.59 g/t silver, 0.52% copper, 4.96% zinc, 0.29% bismuth over 13.95 meters (historic 2011). - Weaver Gold Property (BC, Canada): An exploration program is planned for this gold and silver property, which also has historical drilling results, including 16.6 g/t gold over 1.52 meters and 383.7 g/t silver over 6.1 meters (historic 1975 and 1996).

The company recently sold its Sphinx Mountain Rare Earth Property in British Columbia, which was a newer acquisition (February 2024).