Mr. Duane Poliquin reports

ALMADEX PROVIDES CORPORATE UPDATE

Almadex Minerals Ltd. has provided an update regarding its request for consultations delivered to the United Mexican States ("Mexico," see press release dated Dec. 14, 2023).

As previously reported, on Dec. 13, 2023, Almadex delivered to Mexico a written request for consultations in accordance with Article 9.18 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), setting out a brief description of facts regarding the measures at issue. On Dec. 29, 2023, Mexico acknowledged receipt of that request and stated that it would propose dates for a consultation meeting in the near future, but never reverted with proposed dates, leaving the dispute unresolved.

Accordingly, on March 14, 2024, Almadex delivered to Mexico written notice of its intention to submit a claim to arbitration against Mexico in accordance with Article 9.19.3 of the CPTPP. This notice has been delivered by Almadex together with Almaden Minerals Ltd., on behalf of themselves and their Mexican subsidiaries.

Amongst other things, the notice sets out the factual background of the dispute as well as the legal basis of the resulting claim, the provisions of the CPTPP that Mexico has breached and the relief sought. The damages relating to the Almadex and Almaden claim will be for no less than $200-million (U.S.), in the aggregate. Almadex would be entitled to damages relating to its 2.0-per-cent NSR (net smelter return) royalty on the Ixtaca project, if damages were to be awarded.

The notice enables the company to initiate arbitration should an amicable resolution of the dispute with the Mexican government not be reached. The filing of the notice must precede initiation of arbitration by a minimum of 90 days.

In good faith and in the spirit of co-operation, Almadex invites Mexico once again to engage in discussions and negotiations with a view to achieving an amicable resolution of the dispute. If such consultations with Mexico are unsuccessful, Almadex may then submit the claim to arbitration under the CPTPP, seeking damages for the harm incurred, plus interest, costs and any such further relief as a tribunal may deem appropriate.

We seek Safe Harbor.