Baru Gold Provides Update on Sangihe Project Approval and Legal Action Against Illegal Mining Operators and Landowners

Baru Gold Corp. (BARU) announced that its Application for Production Operations at the Sangihe Gold Project in Indonesia has been recommended for approval by all regulatory committees and is now awaiting the final signature from the Minister of Energy and Mineral Resources (ESDM). The company has filed five civil lawsuits against key individuals involved in industrial-scale illegal mining on its concession, seeking a total of CAD $74.58 million in damages.

Management stated that it has spent CAD $2.4 million in the last year meeting ESDM technical requirements and tax obligations. The company asserts that commencing production is the only solution to end illegal mining and establish a regulated framework. Baru Gold intends to proceed to production without a feasibility study establishing mineral reserves, acknowledging increased technological and economic risks. Only 10% of the gold-bearing area, approximately 25,000 hectares, has been explored, with initial production targeting a 65-hectare zone.

Baru Gold Corp. (BARU) announced a procedural step in its regulatory approval process, aligning with management’s previously targeted timeline of October 2026. This development follows legal actions against illegal miners initiated in May 2026 and does not introduce new financial or operational variables.

The company continues to proceed toward production without a NI 43-101 feasibility study, a decision that bypasses standard economic viability validation and remains a significant structural risk. This update does not alter Baru Gold’s severe liquidity position or its immediate need for external capital to fund plant fabrication and site preparation. Market expectations for regulatory approval were already priced in, characterizing this as a routine incremental update.

Baru Gold Corp. is a Canadian pre-revenue junior explorer focused on the Sangihe Gold Project in North Sulawesi, Indonesia. The company holds a 70% interest in the Sangihe mineral-tenement Contract of Work (CoW) through its subsidiary PT. Tambang Mas Sangihe (TMS). The project covers approximately 25,000 hectares of gold-bearing area, with only 10% explored to date.

An NI 43-101 technical report covers a 65-hectare initial production area, estimating over 200,000 oz of gold and over 3,000,000 oz of silver. The company plans to use a modular, automated processing plant designed for local manufacturing, targeting an initial production rate of 1,500 oz/month, scaling to 3,000 oz/month. Management has explicitly stated the intention to commence production without establishing mineral reserves via a feasibility study, citing regulatory timelines and the need to combat illegal mining.