Element 29 Adds Third Drill Rig to Accelerate the Ongoing Drill Program at its Elida Porphyry Cu-Mo-Ag Deposit in Peru

The October 15, 2025 news release from Element 29 Resources announces two key developments for its flagship Elida project in Peru: 1. Operational Acceleration: The company has mobilized a third drill rig to accelerate its ongoing 7,000-metre diamond drill program. This will allow for parallel testing of multiple high-priority targets. The release details the status of the three active drill holes (ELID037, ELID036, and the new ELID038), all targeting resource expansion, grade improvement, and testing geophysical anomalies. 2. Financial Strengthening: The company reports that 99.2% of warrants from a September 13, 2023 financing have been exercised at a price of $0.25 per share. This resulted in gross proceeds of approximately $4.6 million. These funds will be used for the current Elida drill program and general working capital.

This news is materially positive for two fundamental reasons: it demonstrates accelerated operational execution and a significantly strengthened financial position, directly addressing the key risks for a junior explorer.

Operational Progress: The addition of a third drill rig is a clear signal of management's confidence and intent to fast-track the exploration of Elida. The drill program, which began on September 4, 2025, was already a major catalyst. Accelerating it means key results will be delivered to the market sooner. This follows a systematic build-up of positive news throughout 2025, including excellent drill results in January (hole ELID033: 1039.6m of 0.54% CuEq), positive geophysical survey results in June identifying new targets, and the renewal of a 5-year community access agreement. The company is executing its stated plan, and now, it's doing so faster.

Financial De-risking: The more significant impact comes from the financial update. As of the June 30, 2025 financials, the company had only $302k in cash, posing a serious going-concern risk. This risk has now been completely mitigated. The company first raised $6.3 million in a private placement in August 2025. Now, the exercise of these warrants adds another $4.6 million to the treasury. This brings total cash injections over the last two months to nearly $11 million. This fully funds the expanded 7,000-metre drill program and provides a substantial working capital buffer, removing any near-term financing overhang. The fact that 99.2% of the warrants were exercised shows strong support from the 2023 financing participants.

In context, this news confirms the company has successfully transitioned from a capital-constrained entity to a well-funded explorer aggressively advancing its flagship asset. While not a discovery, it materially reduces risk and increases the probability of achieving the company's exploration objectives in a timely manner.

Element 29 Resources Inc. is a mineral exploration company focused on its portfolio of copper projects in Peru. Its flagship asset is the 100%-owned Elida Porphyry Copper-Molybdenum-Silver Deposit, located in a prolific mining belt in central Peru. Elida hosts a 2022 pit-constrained Inferred Mineral Resource Estimate of 321.7 million tonnes grading 0.32% Copper (Cu), 0.029% Molybdenum (Mo), and 2.61 g/t Silver (Ag). The company is currently engaged in a resource expansion drill program to test the deposit's continuity at depth and explore for a potential higher-grade core.