Hayasa Metals Announces Initial Drill Results from Phase 2 Drill Program at Urasar Project

On October 14, 2025, Hayasa Metals announced initial results from six of eleven holes from its Phase 2 drill program at the Urasar Project in Armenia. Key intercepts include: * UDD-013: 26.5 meters grading 0.37% Copper (Cu), including a higher-grade zone of 5.5 meters at 0.96% Cu and 0.116 ppm Gold (Au). * UDD-016: 24 meters grading 0.424 g/t Au with 0.18% Cu.

Critically, the company disclosed a significant QA/QC (Quality Assurance/Quality Control) issue. Copper results from several holes appeared lower than visual estimates, which the company suspects is due to a problem with sample preparation procedures. Coarse rejects from selected intervals are being sent to another lab for re-analysis, with results expected alongside the next batch of assays in approximately five weeks.

This news is a mixed bag, leaning slightly positive due to the very low bar set by previous drilling, but it is heavily overshadowed by a significant operational red flag.

The Positive: * Improved Grades: Management states the results are a "marked improvement" over the 2024 maiden campaign, which was described as "subeconomic." Intercepts like 5.5m of nearly 1% copper and 24m of 0.424 g/t gold are tangible hits and a step in the right direction. They provide proof of concept that the geological model is improving after the targeting errors of 2024. * Porphyry Potential: Observations of mineral assemblages and molybdenum values tracking copper and gold continue to support the thesis that they are on the margins of a larger, concealed porphyry copper system.

The Negative (and more important): * Major QA/QC Failure: The disclosure of a potential sample preparation issue that may be suppressing copper grades is a major red flag. It casts doubt on the validity and accuracy of all reported results. Until the check assays from the second lab are received and reconciled, these copper grades cannot be relied upon. This suggests a potential breakdown in procedural oversight. * Pattern of Technical Errors: This QA/QC issue follows a previously disclosed "rotational error" in IP survey data from February 2025, which led to the 2024 drill program being misdirected. A pattern of significant technical errors is concerning for a junior exploration company whose value is derived almost entirely from its technical competence. * Modest Intercepts: While an improvement, the overall intercepts (e.g., 26.5m of 0.37% Cu) are not yet indicative of an economic deposit and are unlikely to generate significant market excitement on their own, even if validated.

In context, the market was awaiting these results following the company's successful C$1.89 million financing in September. The results keep the exploration story at Urasar alive but do not materially de-risk the project. The uncertainty created by the QA/QC issue neutralizes much of the positive geological news. The impact is therefore assessed as non-material but positive, as hitting any grade is better than the subeconomic results from the prior campaign.

Hayasa Metals is a junior exploration company focused on two copper-gold projects in Armenia: Urasar and Vardenis.

• Urasar Project (100% owned): This is a district-scale copper-gold project acquired in 2023. The 2024 maiden drill program was largely a failure due to targeting errors. The 2025 Phase 2 program, for which results are now being released, was designed to test corrected targets based on reinterpreted historical and geophysical data. The project is royalty-free after the company sold a 1.25% NSR to Franco-Nevada and EMX Royalty Corp. in January 2025.
• Vardenis Project (Optioned to Teck): This appears to be the company's premier asset. In August 2025, Hayasa granted major miner Teck Resources an option to earn up to an 80% interest. Teck must fund USD$15 million in exploration and deliver a pre-feasibility study, significantly de-risking the project for Hayasa shareholders. A minimum 3,500-meter drill program commenced in September 2025, fully funded by Teck.