Belo Sun Reports on New Court Proceedings Regarding the Volta Grande Gold Project

Belo Sun Mining Corp. announced that the Federal Public Defender’s Office in Brazil has filed a new Civil Public Action (CPA) against its subsidiary and other defendants. The lawsuit demands free, prior, and informed consultation for the Mebângôkre-Xikrin Indigenous people under ILO Convention No. 169 and seeks their formal inclusion in the environmental licensing for the Volta Grande Gold Project.

Interim relief requested in the filing includes the suspension of project licenses until consultation is completed and court-supervised expert evidence regarding the project’s tailings dam. Belo Sun intends to vigorously defend against the action, arguing that it is substantially identical to a previous CPA and constitutes lis pendens, or duplicate litigation.

The company also noted ongoing conciliation proceedings with FUNAI regarding the potential inclusion of additional Indigenous communities, emphasizing that any such inclusion must follow technical criteria.

Belo Sun Mining Corp. (BSX) faces a filing that continues long-standing regulatory and indigenous consultation battles in Brazil rather than introducing a novel development. The company’s primary legal defense relies on lis pendens, arguing that the court should dismiss the case as already adjudicated. This historically favorable precedent reduces the immediate probability of a license suspension.

A request for expert evidence regarding the tailings dam represents a new element that could introduce minor delays or additional compliance costs, but it does not fundamentally alter the project’s technical or financial profile. No immediate capital raise is triggered by this news. The company holds approximately $43.1 million CAD in cash with zero debt, providing ample runway to absorb legal costs and continue technical studies. While litigation risk remains a persistent overhang, the company’s legal posture is consistent with prior periods, and the market has already priced in Brazilian regulatory friction.

Belo Sun Mining Corp. is a development-stage gold company advancing its 100%-owned Volta Grande Gold Project in Pará, Brazil. The project holds an Installation License (LI) that was reinstated by the Federal Regional Court in February 2026 and formally reissued by SEMAS in April 2026, valid until April 2029.

The company is currently conducting a Technical Gap Analysis to update 2015 studies and define the scope for a Definitive Feasibility Study (DFS), with construction targeted to begin in early 2027. A local workforce training program is being developed to prepare approximately 1,700 workers for construction and operations.