Element 29 receives environmental OK for Paka

Executive Summary

• Element 29 Resources received environmental certification (DIA) for its Paka project in Peru, advancing the application for a new drilling permit (PIA) allowing up to 40 platforms for five years.
• Drilling at the Elida project is ongoing with two rigs active; five holes totaling over 4,700 meters have been completed, with the remaining 2,300 meters expected before the end of Q1 2026.
• The company plans an additional 5,000 meters of follow-up drilling in H1 2026, subject to receiving the PIA permit, and preliminary metallurgical testwork is scheduled for Q2 2026.

Key Details

• Paka Project Permitting:
  • Received Declaracion de Impacto Ambiental (DIA) from MINEM.
  • Certification covers up to 40 drilling platforms for a period of up to five years.
  • This is a critical step toward securing the Programa de Inicio de Actividades (PIA) drilling permit.
  • Company is preparing a collective impacts report for the prior consultation (consulta previa) process with the Ministerio de Cultura.
• Elida Project Drilling Status:
  • Two diamond drill rigs currently operating.
  • Five drill holes completed and reported on Jan. 26, 2026.
  • Total drilled: >4,700 meters.
  • Planned program total: 7,000 meters.
  • Remaining: 2,300 meters expected to be completed before the end of Q1 2026 under existing environmental certification (authorizing up to 20 platforms).
• Elida Exploration Strategy & Results:
  • Current focus: Follow-up on long, higher-grade Cu-Mo-Ag continuous intercepts from holes ELID037, ELID033, ELID035, and ELID025 along the northern side of the deposit.
  • Objective: Expand mineralized footprint beyond previous constraining pit shell and target significant resource expansion.
  • New Targets: Testing a large, low-resistivity magnetotelluric anomaly interpreted to correlate with higher-grade, sulphide-rich carbonate replacement deposit and skarn-type copper mineralization.
  • Additional drilling planned along the southern side to evaluate resource growth potential with low strip ratio.
• Future Plans:
  • Drilling: Subject to PIA receipt, an additional 5,000 meters of follow-up drilling is planned for the first half of 2026.
  • Metallurgy: Preliminary metallurgical testwork planned for Q2 2026 to evaluate Cu-Mo-Ag concentrate recoveries and assess deleterious elements.
• Corporate Events:
  • Company exhibiting at PDAC 2026 (March 1-4) at booth No. 2739.
  • CEO Richard Osmond presenting at 2 p.m. ET on Tuesday, March 3, 2026, in the Investment Hub Theatre.

Notable Quotes

• "Receiving the DIA environmental certification at Paka represents a major catalyst for the company as we advance toward our inaugural drill program on a large, highly prospective porphyry-skarn system along the possible northwest extension of the southern Peru copper belt." — Richard Osmond, President and CEO
• "Drilling at Elida continues to deliver valuable technical information as we follow up on higher-grade intercepts along the northern extension of the deposit. With two rigs active and additional drilling planned, our focus remains on expanding the mineralized footprint while advancing Elida toward the next stage of resource growth." — Richard Osmond, President and CEO