Baru Gold Announces Ongoing Police Action Against Illegal Mining Operations on Sangihe Island

Baru Gold Corp. announced that the North Sulawesi Provincial Police executed a multi-day law enforcement operation targeting industrial-scale illegal mining on its Sangihe Island concession. Authorities dismantled eleven active heap leach processing facilities, destroyed base camps, and immobilized heavy machinery linked to illicit operations.

The enforcement action provides evidentiary support for the company's ongoing civil lawsuit filed on October 19, 2026, seeking approximately CAD $74 million in damages against illegal mining operators. Securing the project area is a stated prerequisite for the company to commence formal production operations once final regulatory approval is granted. CEO Terrence Filbert highlighted the operation as a significant step forward, noting that disabling illegal infrastructure disrupts illicit activities and positions the company to move directly into production upon receiving final approval.

Baru Gold Corp. (BARU) reported the dismantling of illegal processing infrastructure, a move the company states aligns with its strategy to eradicate illegal mining through the commencement of legal production. This action reduces immediate competition for ore and mitigates environmental damage, supporting the company’s long-term asset value and regulatory standing. The development also directly supports the CAD $74 million civil claim filed in October 2026, potentially strengthening Baru Gold’s position in settlement negotiations or court proceedings.

The update does not introduce new financial data, alter the regulatory timeline for the ESDM production approval, or change the company’s liquidity position. It serves as an incremental follow-up to previously disclosed legal and operational strategies. Baru Gold continues to face severe liquidity constraints and has explicitly acknowledged going concern risks, meaning this operational progress does not immediately resolve funding needs or guarantee production commencement.

Baru Gold Corp. is a Canadian junior mining company focused on the Sangihe Gold Project in North Sulawesi, Indonesia. The company holds a 70% interest in PT Tambang Mas Sangihe (TMS), which controls the Contract of Work (CoW) valid until 2054 with a 20-year extension option. The project covers approximately 25,000 hectares, with only 10% explored. Initial production targets a 65-hectare area.

An existing NI 43-101 report estimates over 200,000 ounces of gold and over 3,000,000 ounces of silver in the initial production zone. The company plans to proceed to production without first establishing mineral reserves via a feasibility study, acknowledging increased technological and economic risks. A modular, automated processing plant is being fabricated in Indonesia, with site preparation underway to enable immediate construction upon regulatory approval.