Cerro de Pasco Resources Inc. Announces Execution of Settlement Agreement with Trevali Monitor

Executive Summary

• Cerro de Pasco Resources Inc. entered into a settlement agreement with Trevali Mining Corp. and its court‑appointed monitor, agreeing to pay CAD 2 million to resolve all claims related to the 2021 Santander Mine acquisition.
• Upon court approval, CDPR will eliminate recorded purchase‑price payable (USD 1,584,164) and contingent consideration payable (USD 2,500,000), removing a total of USD 4,084,164 from its balance sheet and generating a material gain on settlement.
• The settlement clears all remaining exposure from the historic Trevali transaction, allowing CDPR to focus on core operations and development projects in Peru.

Key Details

• Settlement Amount: CAD 2,000,000 payable by CDPR within 10 days of arbitrator’s termination order.
• Cost Recovery: CAD 700,000 security for costs will be released back to the Monitor after court approval.
• Liability Removal: Elimination of USD 1,584,164 purchase‑price payable and USD 2,500,000 contingent consideration payable (total USD 4,084,164).
• Financial Impact: Expected material gain on settlement when reflected in CDPR’s financial reporting.
• Legal Process: Settlement subject to court approval; arbitration termination application scheduled for hearing before the Supreme Court of British Columbia on 2025‑12‑16.
• Legal Costs: Each party bears its own legal costs; arbitrator fees split equally.
• Management Quote: “We are pleased to have reached a definitive resolution that removes the remaining exposure associated with the historic Trevali transaction,” said Guy Goulet, CEO.

Notable Quotes

“This settlement, once approved by the court, provides clarity for all parties involved and allows the Company to move forward with a clear focus on advancing our core projects in Peru.” – Guy Goulet, CEO, Cerro de Pasco Resources Inc.