Fortune Bay disputes protected area over Rio Negro

Mr. Dale Verran reports FORTUNE BAY PROVIDES UPDATE ON POMA ROSA PROJECT, CHIAPAS STATE, MEXICO Fortune Bay Corp. has provided an update regarding recent regulatory developments in the state of Chiapas, Mexico, that may affect the company's Rio Negro concession (Poma Rosa project), held through its wholly owned Mexican subsidiary, Linear Gold Mexico S.A. de C.V. On Nov. 19, 2025, the government of the state of Chiapas published a decree establishing a state-level protected natural area known as the Zona Sujeta a Conservacion Ecologica Mina Banderas, located in the municipality of Pantepec. Based on recent review of the decree and associated mapping, a portion of the designated area overlaps with the company's Rio Negro concession, which remains valid and in good standing under federal Mexican mining law. The overlapping area covers approximately 11 per cent of the Rio Negro concession, and includes a portion of the Campamento gold-silver deposit and other nearby exploration target areas. The company was recently made aware of the protected natural area and the potential implications to the Rio Negro concession, and in response has filed an amparo (constitutional challenge) before the appropriate federal court in Mexico. The amparo challenges the application of the Mina Banderas decree to the Rio Negro concession on procedural and constitutional grounds, including matters relating to due process, consultation, and the interaction between state environmental measures and federally granted mining rights. The purpose of the amparo is to preserve the company's rights under its existing concession while the matter is reviewed by the court. During 2025 the company has made significant progress in advancing stakeholder engagement and support for the Poma Rosa project, including substantive discussion and negotiation with local landowners regarding exploration agreements that would support the resumption of field-based exploration activities. Engagement to date has been conducted in a respectful and transparent manner and in compliance with applicable laws. As of the date of this release, the company does not expect any immediate operational or financial impact beyond potential timing uncertainty. Fortune Bay is working closely with Mexican legal counsel to assess the scope and implications of the decree and the amparo process. The company will continue to monitor developments and will provide further updates as appropriate. About Fortune Bay Corp. Fortune Bay is a Canadian mineral exploration and development company with assets in Canada and Mexico. The company's primary focus is advancing the Goldfields gold project in Saskatchewan, Canada. Fortune Bay also holds the Poma Rosa gold-copper project in Chiapas, Mexico, as well as an optioned uranium project portfolio in the Athabasca basin of Saskatchewan. Fortune Bay continues to evaluate and advance its portfolio in a disciplined manner while maintaining a strong technical foundation and prudent capital management. We seek Safe Harbor.