Mr. Duane Poliquin reports

AZUCAR REPORTS NOTIFICATION OF LAWSUIT ON EL COBRE CONCESSIONS, MEXICO

Further to Azucar Minerals Ltd.'s press release dated June 2, 2023, it has received notification from the First District Court of Veracruz that its Mexican subsidiary, Minera Alondra, has been named in a lawsuit relating to 24 mineral concessions in Veracruz, Mexico, some of which are held by Alondra. The concessions owned by Alondra that are named in the amparo cover the El Cobre project.

The amparo was filed in 2022 before the First District Court by 33 people from the municipalities of Actopan and Alto Lucero who claim that the concessions affect their right to water and a clean environment amongst other things, and that they should have been consulted prior to the concessions being issued. The amparo was brought against the Ministry of Economy, the mining authorities (the General Directorate of Mining and the Public Mining Registry) and both chambers of Congress, and is seeking to cancel the concessions. The plaintiffs also requested an injunction on the concessions so that their rights would not be affected during the amparo lawsuit.

The First District Court has now notified Alondra that the amparo has been admitted and that Alondra is an affected third party. The First District Court has also stated that, although the plaintiffs have not presented any evidence of damage, the continuation of mining-related activities in the area could affect the plaintiffs' right to health and to a healthy environment, and therefore it has granted a definitive injunction requiring the cessation of mining-related activities on the concessions that may affect the plaintiffs. At this time, the company does not know if the claimed environmental rights of the plaintiffs or their property may be related to the concessions owned by Alondra.

With this notification, Alondra is now able to make arguments before the First District Court, and as a first step it intends to file arguments relating to both the admission of the amparo and the injunction.

Azucar is not planning any fieldwork at El Cobre until this situation is clarified.

We seek Safe Harbor.