Emerita Provides Response to Demand Letter

• Emerita Resources Corp. received a demand letter dated May 14, 2026, from legal counsel representing PM Super Fund and trustee Wayne Peters.
• The demand relates to the Company's Falcon Litio property and requests initiation of legal proceedings.
• A Special Committee comprised of independent directors has been formed to review allegations and determine the appropriate course of action expeditiously.
• This follows a broader regulatory enforcement proceeding announced by the Ontario Securities Commission (OSC) on April 9, 2026, regarding historical disclosures about Plaza Norte and Falcon Litio MG property.
• Management change occurred in April 2026 with CEO David Gower and Chairman Larry Guy resigning to mitigate distractions from OSC allegations; Joaquin Merino appointed Interim CEO.

• The demand letter represents a continuation of the legal risks identified in the April 9, 2026 OSC enforcement proceeding rather than a new fundamental shift.
• Given the stock price crash from $1.65 to $0.26 following the initial OSC news and Denarius offer rescission in April, this litigation update is largely priced into the current valuation.
• The formation of a Special Committee indicates governance response but does not resolve the underlying allegations regarding legacy projects (Falcon Litio/Plaza Norte).
• While the core business focus remains on the Iberian Belt West (IBW) Project, legal uncertainty over legacy assets creates reputational risk and potential distraction for management.
• The news is negative in tone but lacks immediate material financial impact compared to the April regulatory shock; therefore it is categorized as Routine - Negative rather than Material - Negative.

• Flagship Project: Iberian Belt West (IBW) Project located in Huelva Province, Spain.
• Asset Type: Three Volcanogenic Massive Sulfide (VMS) deposits: La Romanera, El Cura, and La Infanta.
• Status: Development / Pre-production; advancing towards Exploitation License.
• Metallurgy: Two viable processing routes identified (Albion Process & CLEVR); Albion shows 96% silver recovery vs 50-64% for CLEVR.
• Jurisdiction: Spain offers strategic critical metal status and EU incentives, though permitting remains complex.
• Legacy Projects: Aznalcóllar (under litigation), Falcon Litio (Brazil - under demand letter), Plaza Norte (Spain - OSC allegations).