Mr. Peter Hemstead reports

BLUESTONE ANNOUNCES STRATEGIC REVIEW PROCESS

Bluestone Resources Inc. has commenced a process to explore and evaluate potential strategic alternatives to further advance the Cerro Blanco gold project and Mita geothermal project. These alternatives could include, among other things, the sale of part or all of the assets of the company, a sale of the company, a merger or other business combination with another party, or other strategic transaction.

Bluestone has successfully advanced the Cerro Blanco gold project through several technical studies, unlocking additional value through an open-pit development scenario, which effectively doubled the gold resource ounces and tripled the projected project returns (see press release dated Feb. 22, 2022).

The company has also advanced the Mita geothermal project, including an updated reservoir calculation and economic analysis. The economics of the project highlight a viable development scenario. Permitted for up to 50 MW (megawatts) with 18 geothermal wells, Mita is one of the most advanced geothermal projects in Guatemala.

As outlined in the 2022 feasibility study, the Cerro Blanco gold project is a robust, rapid pay-back, high-grade operation. However, as a single-asset developer with no operating revenues, safeguarding capital, shareholder dilution and value is a top priority. A larger company or entity with cash flow could be more appropriately suited to maintain and advance the Cerro Blanco gold project and Mita geothermal project over any future development timeline.

The Cerro Blanco gold project is currently permitted as an underground gold mine. A permit amendment was submitted to the Guatemalan Ministry of Environment in late 2021 for an open-pit development scenario. The amendment application is a comprehensive document that covers all aspects of the project in detail. The company has been in regular contact with the relevant authorities as they complete their technical reviews, including site visits and providing responses to questions and comments on the amendment application. The company is waiting for the formal response with comments and questions to conclude the technical review of the project.

Strategic review

As part of the strategic review, alternatives could include, among other things, the sale of part or all of the assets of the company, a sale of the company, a merger or other business combination with another party, or other strategic transaction. The company has not set a timetable for this process, nor has it made any decisions related to any strategic alternatives at this time. There can be no assurance that the exploration of strategic alternatives will result in a transaction. The company does not intend to provide announcements or updates unless or until it determines that further disclosure is appropriate or necessary. During this time, the company will continue to pursue the approval of the permit amendment for the Cerro Blanco gold project.

About Bluestone Resources Inc.

Bluestone Resources is a Canadian-based precious metals exploration and development company focused on opportunities in Guatemala. The company's flagship asset is the Cerro Blanco gold project, a near-surface mine development project located in southern Guatemala in the department of Jutiapa. The company released the results of a feasibility study for the project, outlining an asset capable of producing over 300,000 ounces per year at head grades of plus 2.0 grams per tonne gold. The project will produce 2.6 million ounces of gold over the life of mine at an all-in sustaining cost of $629 per ounce (as defined per World Gold Council guidelines, less corporate general and administration costs) over an initial 14-year mine life.

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