Homerun Resources Inc. Completes District Control Strategy with Purchase Agreement for 582 Hectares of Land and Surface Rights over Santa Maria Eterna High Purity Silica Sand District, in Belmonte, Bahia, Brazil

Executive Summary

• Homerun Resources Inc. signed a purchase agreement for the 582‑hectare Fazenda Conjunto São José e Nova Esperança in Brazil, completing its “District Control Strategy” for the Santa Maria Eterna (SME) Silica Sand District.
• The US$1.1 million consideration consists of US$500,000 cash payable in five monthly installments (first due 2026‑06‑25) and US$600,000 worth of Homerun common shares at CA$1.00 per share, subject to TSX Venture Exchange approvals and a statutory hold period.
• The acquisition secures long‑life economic interests, surface rights, and mineral lease/royalty rights, providing supply security for the company’s planned high‑purity silica sand processing and antimony‑free solar glass industrial complex.

Key Details

• Asset Acquired: Fazenda Conjunto São José e Nova Esperança (582 ha) in the Municipality of Belmonte, Bahia, Brazil – contiguous with previously secured 99‑year renewable surface rights over Fazenda São José.
• Strategic Significance: Final component of Homerun’s SME District Control Strategy initiated Q1 2023; now holds mineral leases, long‑term supply agreements, surface rights, and direct land ownership across the district.
• Purchase Price: US$1,100,000 total
• Cash Portion: US$500,000 via wire transfer in five equal monthly installments (first installment due 25 June 2026).
• Equity Portion: US$600,000 in Homerun common shares priced at CA$1.00 per share, subject to TSX Venture Exchange approval and a four‑month statutory hold period; includes repurchase and anti‑dumping provisions.
• Transfer of Rights: Agreement also conveys standard Brazilian mineral lease/royalty rights for exploration with third parties within the acquired land/surface area.
• Operational Impact: Provides secured, long‑term feedstock for planned high‑purity silica sand processing plant and 1,000 t/d solar glass manufacturing facility; enhances scale and location control for downstream industrial use.
• CEO Quote (Brian Leeners): Emphasized the three‑year journey from identifying the SME district’s value to achieving full control through land ownership, partnerships, and mineral leases, positioning the company for next phases of high‑margin silica processing and antimony‑free solar glass production.

Notable Quotes

“That original plan has manifested today into Homerun obtaining that desired control of the SME Silica Sand District through direct resource ownership, resource partnership and direct land ownership.” – Brian Leeners, CEO & Director

Materiality Assessment: Material – Positive (the acquisition materially advances Homerun’s strategic positioning and supply security for its core silica‑based businesses).