Arbitration Award Update, November 2025

The November 20, 2025 news release provides an update on the company's efforts to collect on its International Centre for Settlement of Investment Disputes (ICSID) arbitration award against the Republic of Peru. The company states it is preparing to enforce the award, which amounts to approximately US$67 million, through asset seizures if necessary. CEO Gordon Ellis confirmed the full support of their litigation funding partner, Benchwalk, in this process.

The most recent news is a logical and expected progression following the October 30, 2025 announcement that the award was final and binding after Peru let the annulment period expire. While the confirmation of moving to the collection and enforcement phase is positive, it is a procedural step and does not materially change the investment thesis.

The true material events were the initial award announcement on July 2, 2025, and the confirmation of its finality on October 30, 2025. This latest news is a routine follow-up. It does not provide a timeline for collection nor does it guarantee success. The core of the investment case now rests entirely on sovereign collection risk—the ability to successfully identify, seize, and liquidate Peruvian state assets. This process can be lengthy, complex, and politically challenging.

The CEO's statement is appropriately cautious, acknowledging that payment is not guaranteed to be forthcoming and that enforcement action is being prepared as a contingency. Therefore, the news reinforces the company's stated path but does not reduce the significant uncertainty surrounding the timing and amount of any eventual cash recovery. It is a positive step, but not a transformative one.

Lupaka Gold Corp. is a Canadian-based company that is, for all practical purposes, a special situation vehicle. Its primary and sole significant asset is a final and binding arbitration award against the Republic of Peru valued at approximately US$67 million (including accrued interest).

The claim, and now award, stems from the company's prior investment in the Invicta Gold Project in Peru, which was disrupted by community blockades, leading the company to claim Peru violated the Canada-Peru Free-Trade Agreement by failing to protect its investment. The company has no active exploration or mining operations. It holds minor mineral properties (Idol City and Pine Creek) in Oregon, USA, with a negligible carrying value of ~$16,000 on its balance sheet.