Arbitration Award Update, August 2026

Lupaka Gold Corp. has reached a settlement with the Peruvian government, specifically MINEM and MOI, to pay the full ICSID arbitration award. The total amount, originally estimated at US$65–69M, is now approximately US$70.6M including interest. The payment will be made in two tranches.

• First tranche (70% of award plus accrued interest, approx. US$49.4M) was received by July 31, 2026.
• Second tranche (30%, approx. US$21.2M) is due by December 31, 2026, with additional interest if delayed.

Upon receipt of the first payment, Lupaka will immediately repay litigation funder Bench Walk Advisors for arbitration financing and profit share. Within 30 days, a first dividend will be paid to holders of 160.28 million Contingent Value Rights (CVRs). The dividend amount is net of Bench Walk’s repayment, legal and professional fees, accounts payable, distribution costs, and up to C$8 million retained for working capital. A second CVR dividend will follow the receipt of the second payment and is expected to be larger because initial costs will have been covered.

CEO Gordon Ellis stated that the outcome allows the company to focus on potential resource development projects.

Lupaka Gold Corp. (LPK) has received the first US$49.4 million payment from a sovereign arbitration award, a development that removes existential uncertainty and triggers immediate cash inflows for Convertible Voting Rights (CVR) holders and the company. While the existence of the award was previously known, successful collection is not guaranteed. The progression of events moved from award finality in October 2025 to enforcement actions between November 2025 and May 2026, culminating in the settlement and payment in August 2026. This release confirms liquidity for the asset, where previously only litigation risk existed.

The company’s common shares have a market capitalization of approximately C$7 million. Consequently, the US$49.4 million receipt, even after heavy deductions, represents a significant change to the company’s financial position. The retained C$8 million alone exceeds the entire equity value prior to the news.

The CVRs are the primary beneficiaries of this payment. The residual value for common shareholders depends on the amount remaining after Bench Walk’s cut, accounts payable, and CVR distributions, as well as any value assigned to future resource development. The nature of the CVR structure means common equity may not capture the full award, but the risk of zero value has receded sharply.

Lupaka Gold Corp. is a Canadian-based company listed on the TSX-V (LPK) and Frankfurt (LQP). Historically, the company held gold assets in Peru, which were relinquished following a dispute that led to arbitration. Currently, Lupaka Gold Corp. does not have an operating mine or development project.

The company’s primary asset has been a US$65+ million ICSID arbitration award against the Republic of Peru for breaches of the Canada-Peru Free Trade Agreement. According to the Investor Presentation dated March 2026, the company’s strategy focuses on creating shareholder value through the identification and development of mining assets. Management consists of CEO Gordon Ellis; no other senior officers or directors are listed in the provided materials. There is no mention of royalties or encumbered properties, and the award proceeds are not tied to a specific property.