Element 29 Resources begins drilling at Elida

Mr. Richard Osmond reports ELEMENT 29 CONTINUES POTENTIAL RESOURCE EXPANSION DRILLING AT ITS ELIDA PORPHYRY CU-MO-AG DEPOSIT IN PERU Element 29 Resources Inc. has commenced drilling activities at its Elida porphyry copper-molybdenum-silver deposit in central Peru. Element 29 has launched a new exploration drilling program at Elida aimed at unlocking significant resource growth. Previous drilling recognized higher-grade copper mineralization extending well beyond the current pit-constrained inferred mineral resource estimate and has highlighted the potential for a deeper high-grade copper core -- a hallmark of many economic porphyry copper deposits. This drill campaign represents a major step toward realizing the full potential of Elida, with the opportunity to expand resources and advance the deposit. The proposed drilling program will comprise up to 7,000 metres of diamond drilling and is designed to potentially expand the existing mineral resource and enhance the overall copper-molybdenum-silver grades. Planned drill holes will test the potential for resource expansion beyond the current pit shell to depths exceeding 1,000 metres, while infill drilling will strengthen confidence in the existing mineral resource and enhance the overall copper-molybdenum-silver grades. In addition, exploration drilling outside the mineral resource will be supported by the 3-D resistivity model derived from the recent magnetotellurics (MT) geophysical survey, which identified several high-priority untested targets (refer to news release dated June 26, 2025). To date, there has been insufficient exploration to increase the mineral resource, and it is uncertain if further exploration will result in an increase in the tonnage and/or grades. However, several drill holes have already extended the porphyry copper-molybdenum-silver mineralization well beyond the current pit shell to depths exceeding 1,000 metres, highlighting the strong growth potential of the Elida deposit. Richard Osmond, president and chief executive officer of Element 29, commented: "Results from ELID033 confirmed the high-grade mineralization extends well beyond the current pit shell and highlighted the potential for a high-grade copper core at depth. With drilling now under way, the 2025 drill program offers a clear opportunity to grow the resource footprint and advance Elida toward a major copper discovery in a premier mining jurisdiction, delivering significant value for our shareholders." The first drill rig is currently operating on ELID033, collared on the northwestern side of the pit shell. This hole previously intersected 1,039.6 metres of 0.54 per cent copper equivalent (0.39 per cent copper, 0.036 per cent molybdenum and 2.96 grams per tonne silver) from bedrock surface at 69.9 metres, including 310.1 metres of 0.71 per cent copper equivalent (0.56 per cent copper, 0.040 per cent molybdenum and 3.49 grams per tonne silver) from 799.5 metres to the end of hole at 1,109.6 metres (refer to news release dated Jan. 22, 2025). The hole was shut down for operational reasons while still in higher-grade copper-molybdenum-silver mineralization. Core logging identified a marked increase in the chalcopyrite-to-pyrite ratio downhole, supported by an increase in the copper/sulphur ratio and overall copper grades, suggesting the potential presence of a high-grade copper core with associated bornite-rich mineralization at depth. The company plans to continue drilling ELID033 to approximately 1,500 metres while still in higher-grade copper-molybdenum-silver mineralization. This hole will test the potential for a high-grade copper core coincident with a large untested low-resistivity MT anomaly, representing a compelling opportunity for substantial resource expansion. The second rig is set up on ELID036, along the southwestern side of the pit, approximately 100 metres west of ELID023. Previous drilling in this area confirmed continuity of mineralization, with ELID023 intersecting 523.5 metres of 0.35 per cent copper equivalent (0.24 per cent copper, 0.024 per cent molybdenum and 2.9 grams per tonne silver), including 91 metres of 0.56 per cent copper equivalent (0.41 per cent copper, 0.032 per cent molybdenum and 4.1 grams per tonne silver) from bedrock surface at 87 metres (refer to news release dated Jan. 19, 2022). The hole was terminated at 662.4 metres without reaching the southern limit of mineralization, highlighting a much wider-than-anticipated zone of untested copper-molybdenum-silver mineralization along the southern margins of the porphyry system. ELID036 provides an opportunity to enhance the overall copper-molybdenum-silver grades within the mineral resource and to potentially expand resources beyond the current pit shell, without materially affecting the deposit's low 0.74:1 strip ratio. The hole is also targeting a large low-resistivity MT anomaly interpreted as strong hydrothermally altered host volcano-sedimentary rocks along the contact with the Elida porphyry intrusive complex, where higher-grade copper-molybdenum-silver mineralization is known to occur within the pit shell. The plan is to drill ELID036 to a depth of 850 metres while in ore-grade copper-molybdenum-silver mineralization potentially expanding the resources well beyond the current pit shell. About Elida porphyry copper-molybdenum-silver deposit The Elida porphyry copper-molybdenum-silver deposit occurs along the eastern side of a large block of 29 contiguous concessions totalling 19,159.06 hectares that are 100 per cent owned by Element 29 Resources. The project is in west-central Peru and is road accessible from the capital city, Lima, along the Pan American Highway, 170 kilometres northwest to the coastal city of Barranca, then inland 75 kilometres along a secondary road with paved and unpaved surfaces. Elida is well located for future mine development and will benefit from nearby infrastructure and a skilled work force. The project is situated at a moderate elevation between 1,500 metres and 2,000 metres with access to transportation routes to coastal shipping ports and power infrastructure, including a 45-megawatt hydroelectric generation facility situated just 15 kilometres from the property. The Elida porphyry complex is a copper-molybdenum-silver-mineralized multiphase porphyry system with a 2.5-kilometre-by-2.5-kilometre hydrothermal alteration footprint at surface, associated with Eocene-aged quartz monzonite stocks, emplaced into the Cretaceous volcano-sedimentary sequence and a granodiorite member of the Peruvian Coastal batholith. Elida is one of the first Eocene-age mineralized porphyry systems discovered in Peru. Previous drilling by Element 29 intersected multiple, long intervals of porphyry copper-molybdenum-silver mineralization, which has been traced to a depth of greater than 900 metres, where it remains open. Most of the copper-molybdenum mineralization is carried in A veins, B veins and C veins, which were formed during the waning stages of potassic alteration, with a significant secondary amount of copper mineralization carried in later E veins from a late chlorite-epidote overprint. Based on 14,361.4 metres of diamond drilling, Element 29 completed an independent pit-constrained inferred mineral resource estimate, which outlined 321.7 million tonnes of 0.32 per cent copper, 0.029 per cent molybdenum and 2.61 grams per tonne silver at a 0.2-per-cent-copper cut-off grade and a 0.74:1 strip ratio. Information on the mineral resource is in the technical report, available on the company's website and on SEDAR+, titled "NI 43-101 Technical Report, Mineral Resource Estimation of the Elida Porphyry Copper Project in Peru," with an effective date of Sept. 20, 2022, and prepared in accordance with Form 43-101F1 by Marc Jutras, PEng, MASc, principal, mineral resources, Ginto Consulting Inc., a qualified person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects, who is independent of Element 29 Resources. Qualified person The scientific and technical content of this news release has been reviewed and approved by Richard Osmond, PGeo, Element 29's president and chief executive officer, who is the qualified person as defined by NI 43-101. About Element 29 Resources Inc. Element 29 is an emerging junior resource company with a highly experienced management team and board focused on exploring and potentially developing Tier 1 copper deposits in Peru, one of the lowest-cost, lowest-risk mining jurisdictions globally. The company's principal objective is to explore and significantly expand its Elida porphyry copper-molybdenum-silver deposit in west-central Peru. Alongside Elida, the company has three early-stage, highly prospective porphyry copper projects in Peru for more than 25,000 hectares of titled concession. These include the Flor de Cobre porphyry copper-molybdenum prospect situated in the Southern Peru copper belt, just 26 kilometres from the Cerro Verde copper mine (Freeport-Buenaventura), as well as the Paka and Pahuay porphyry copper skarn prospects related to potential Tertiary-aged, mineralized porphyry complexes intruding along the eastern margin of the Peruvian Coastal batholith. All projects are well located for future mine development and will benefit from nearby infrastructure, including roads, power lines, ports, water and a skilled work force. We seek Safe Harbor.