Halcones submits documents for Polaris surface access

Executive Summary

• Halcones Precious Metals has initiated legal proceedings in Chile to secure surface access for diamond drilling at its Polaris project after nine months of unsuccessful negotiations with surface rights holders.
• The company simultaneously amended its option agreement with Austral Exploraciones SpA to extend the drilling deadline to October 23, 2026, and the mineral resource estimate deadline to October 23, 2028.
• The release highlights significant surface gold anomalies at Polaris, including samples up to 55 g/t Au, with plans to test the depth continuation of these high-grade zones.

Key Details

• Legal Process for Surface Access:
  • Halcones submitted documentation to the civil court of Taltal, Chile, to initiate the legal process for granting surface access to drill the Polaris project.
  • This action follows approximately nine months of failed negotiations with surface rights holders.
  • Under Chilean law, state-owned mineral rights take precedence over surface rights; the company will arrange compensation for the surface rights holder through this legal channel.
  • The process typically takes several months, though temporary access may be granted in as little as one month for certain activities.
  • The company will continue to seek a negotiated agreement while the legal process proceeds.
• Option Agreement Amendments:
  • An amendment was executed with Austral Exploraciones SpA (optionor of the Polaris project).
  • Drilling Deadline: Extended to complete 2,000 metres of drilling until October 23, 2026.
  • Resource Estimate Deadline: Extended to complete a NI 43-101-compliant mineral resource estimate until October 23, 2028.
• Polaris Project Geology and Sampling:
  • Location: Northern Chile, a mining-friendly jurisdiction.
  • History: Exploited by artisanal miners in the 1920s/30s; no modern diamond drilling has occurred.
  • Current Work: Recent mapping and sampling identified extensive gold mineralization over a 3.9-kilometre strike length.
  • North Zone Anomaly: A 500m x 500m area with bedrock surface samples up to 55 grams per tonne gold.
  • Assay Highlights:
    • Select assays include 29.04, 20.05, 13.08, and 10.67 g/t Au.
    • 30 outcrop samples above 10 g/t Au.
    • 35 bedrock samples between 5 and 10 g/t Au.
    • 104 samples between 1 and 5 g/t Au.
  • Geological Context: High-grade mineralization shows strong structural control, hosted by highly fractured rocks associated with fault splays of the continental-scale Atacama fault system. Management believes there is potential for a larger-tonnage surface deposit.
• QA/QC Protocols:
  • Samples collected via hammer and rock chisel over 1-metre sections (minimum 2kg mass).
  • Samples collected perpendicular to dominant strike; independent samples taken from mineralized structures and host rock to limit bias.
  • Samples delivered to Andes Analytical Assay in Copiapo, Chile.
  • Assaying performed by fire assay (gold) and four acids ICP-AES (34 other elements including silver) in Santiago.
  • Laboratory is ISO/IEC 17025:2017 certified.

Notable Quotes

• Jaime de Orbegoso (External Chilean Legal Counsel): "On Oct. 23, 2025, Minera Los Halcones Chile executed an amendment to the option agreement for the purpose of extending the term to comply with the work commitment on the properties until Oct. 23, 2026. In line with the foregoing and as a result of not having reached an agreement with the surface landowner, the company's board of directors has resolved to initiate the legal process before the courts of justice of Chile to obtain the necessary easements to carry out the planned exploration work. The Chilean law guarantees the titleholder of mining concessions to exercise its rights over and above the rights of the landowner, who is entitled to compensation for the damages caused in the use of the surface."
• Ian Parkinson (CEO): "Polaris is an exciting project that requires diamond drilling. The surface signature is compelling. Demonstrating the depth continuation of what has been outlined on surface is the next logical step for Halcones and Polaris."