Mr. Richard Osmond reports

ELEMENT 29 RECEIVES UPGRADED FIVE-YEAR DRILL PERMIT SUPPORTING ADVANCEMENT OF THE ELIDA PORPHYRY CU-MO-AG PROJECT, PERU

Element 29 Resources Inc. has received an upgraded permiso de inicio de actividades drill permit from the Peruvian Ministerio de Energia y Minas (MINEM) for the continuing diamond drilling program at its Elida porphyry copper-molybdenum-silver deposit in central Peru.

Richard Osmond, president and chief executive officer of Element 29, stated: "Receipt of the upgraded PIA drill permit marks an important milestone for Element 29 and builds on years of detailed environmental and compliance work. This not only unlocks exploration, but also provides flexibility in how we systematically advance our flagship Elida project. Together with our long-term community agreement and ongoing drill program, the permit supports our objective of growing the mineral resource while evaluating the broader potential of the Elida porphyry system."

Drilling program update

Mr. Osmond continued: "Drilling at Elida continues to progress, with two drill rigs currently operating and more than 4,885 metres completed as part of the planned 10,000-metre diamond drilling program."

The new PIA drill permit was approved under a declaracion de impacto ambiental (DIA) environmental certification, authorizing up to 40 drill platforms over a five-year period. Receipt of the new PIA drill permit and the execution of a five-year community access agreement (refer to June 4, 2025, news release) represent significant milestones for advancing the Elida project.

Exploration opportunity

Under the previous 20-platform PIA drill permit, exploration activities were largely focused on expanding the Zone 1 mineral resource, with only limited drilling completed across the broader hydrothermal alteration footprint of the Elida porphyry Cu-Mo-Ag system. The additional 20 authorized drill platforms will allow the company to expand its drilling footprint and systematically evaluate a cluster of five porphyry targets, supporting continued mineral resource growth while advancing the district-scale exploration potential of the Elida porphyry system.

New permitting regulations

Recent amendments to Peru's environmental permitting regulations under a supreme decree (decreto supremo No. 014-2026-EM, published July 18, 2026) allow qualifying DIA-certified mineral exploration projects to include up to 60 drill platforms, subject to regulatory approval. Element 29 intends to promptly initiate the DIA amendment process to increase the number of authorized drill platforms, further expanding the company's permitted drilling footprint to the north toward zones 5 and 6.

Qualified person

The scientific and technical content of this news release has been reviewed and approved by Mr. Osmond (PGeo), Element 29's president and chief executive officer, who is the qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

About Element 29 Resources Inc.

Element 29 is an emerging junior resource company with a highly experienced management team and board focused on the discovery and advancement of copper projects in Peru, one of the lowest-cost, lowest-risk mining jurisdictions globally. The company's flagship project is the Elida porphyry Cu-Mo-Ag deposit in west-central Peru, which has an initial pit-constrained inferred mineral resource estimate of 321.7 million tonnes grading 0.32 per cent Cu, 0.03 per cent Mo and 2.61 grams per tonne Ag at a 0.2-per-cent-copper cut-off grade. Alongside Elida, the company has three early-stage, highly prospective porphyry Cu projects in Peru that include the Flor de Cobre porphyry Cu-Mo 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 Cu skarn prospects. All projects are well located for future mine development, and will benefit from nearby infrastructure, including roads, power infrastructure, ports, water and a skilled work force.

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