Mr. Kal Malhi reports

HERTZ ENERGY ACQUIRES DIGITAL DATABASE FOR HISTORIC LAKE GEORGE ANTIMONY MINE, NEW BRUNSWICK, CANADA

Hertz Energy Inc. has acquired a comprehensive digital geological and technical database related to the historic Lake George antimony mine, located in south-central New Brunswick.

Historic Lake George antimony mine

The Lake George antimony mine in New Brunswick, Canada, was North America's largest primary antimony producer, operating from the 1870s until its closure in 1996 due to poor market conditions (government of New Brunswick, mineral commodity profile No. 12, 2018).

The Lake George antimony mine is currently under care and maintenance and owned by the Province of New Brunswick, and is expected to be put up for tender in the coming months. The company's Lake George antimony-tungsten-gold project is a strategically positioned claim package that surrounds the past-producing Lake George antimony mine, and Hertz Energy has secured institutional support as a backstop and plans to submit an aggressive bid to acquire the Lake George antimony mine from the Province of New Brunswick to restart the mine.

The mine produced 20,220 tonnes of antimony from 1876 to 1990, and was formerly the largest antimony producer in North America. The closure of the Durham mine was announced on Jan. 19, 1990. The mining lease (ML 250) was transferred to Apocan Inc. on Feb. 27, 1990.

In 1996, Apocan completed planning and on-site work to reactivate the mine, which was officially reopened on Nov. 5, 1996. Apocan dewatered and operated the mine for a short period of time in 1996; however, because of a problem with the hoist and falling antimony prices, operations were once again suspended in December, 1996.

A compilation of all available historical information was completed to help evaluate the economic potential of the Lake George antimony mine property. There are four historical mineral reserve estimates published for the Lake George antimony mine property.

Summary of the acquired database

The database consolidates decades of historical exploration, mining and technical work completed at the mine, and provides Hertz Energy with a modern, integrated foundation to support future technical evaluation and exploration planning.

The database includes a fully integrated 3-D geological and mine model generated from digitized historical surface and underground level plans for the historical Lake George antimony mine. The model incorporates 452 historical surface and underground drill holes, including underground development around the historical Lawrence and Adams mine shafts, which are peripheral to the main Durham and Proust shafts.

Also included is the complete historical drill hole database used to support a 2014 historical mineral resource estimate for Lake George, comprising 2,467 assay intervals totalling 1,768 metres of sampled core from 452 historical diamond drill holes, representing a cumulative drilled length of 85,217 metres, along with compiled assay data from underground drilling.

The database further contains all supporting files from the 2014 historical estimate, including geological and grade interpolation data, variography, statistical analyses, mineralized wire frames and polygons, volumetric calculations (with and without mining pillars), and grade estimation and validation files.

In addition, Hertz Energy has acquired a recommended diamond drilling program designed to test the down plunge extent of the principal mineralized zones, providing a framework for future exploration and drilling activities.

The database includes historical geological reports, maps and scientific publications related to the Lake George antimony and tungsten deposit, including all relevant historical work reports submitted to the New Brunswick Department of Natural Resources and Energy Development by previous operators.

With Hertz controlling the Lake George antimony-tungsten-gold project, a large, contiguous land package along favourable geological trends that surround one of Canada's leading past-producing critical mineral assets, the company's Tungmony project's scale and location provide optionality beyond the historic Lake George mine and support a long-term growth story rather than a single-asset thesis.

Kal Malhi, chief executive officer of Hertz Energy, stated: "The acquisition of this comprehensive database is expected to significantly enhance Hertz Energy tender bid and reduce the time and cost required for Hertz Energy to evaluate the project by consolidating historical data into a validated digital format that can be readily interrogated and updated. We plan to integrate the database into our internal geological and 3-D modelling platform, and to utilize AI data compilation to refine geological interpretations, prioritize exploration targets and design future drilling programs.

"Antimony and tungsten are designated as a critical minerals in Canada due to their importance in strategic, energy and industrial applications, and, historically, the Lake George mine has produced some of the highest-grade antimony in North America."

Next steps: prepare submit strong tender bid on the Lake George mine

Hertz Energy intends to complete a thorough review and verification of the acquired database, including validation of historical drill hole, assay and geological information by one or more qualified persons, prior to using the database to support future exploration, drilling and technical studies at Lake George. Concurrently, Hertz Energy will be executing an aggressive exploration program on its 100-per-cent-owned Lake George mineral claims that surround the Lake George antimony mine with a goal to outline a mineral resource for future feed to a reactivated Lake George mine. Hertz Energy has secured financial support for a tender bid to be made to the Province of New Brunswick to acquire the historical Lake George antimony mine in 2026 when it is put up for tender.

100-per-cent-owned Hertz Energy Lake George antimony-gold-tungsten Tungmony project summary

The Lake George antimony-tungsten-gold project (Tungmony project) is located approximately 30 kilometres southwest of Fredericton, N.B., and surrounds the historical Lake George mine, once one of the largest antimony producers in North America. The project is currently 100 per cent owned by Hertz Energy, which acquired 93 mineral claims covering roughly 2,104 hectares in two contiguous blocks around the former mine site. While the mine itself remains under the care and maintenance of the Province of New Brunswick, Hertz has initiated discussions with the provincial government regarding the potential acquisition or tender of the mining lease.

Geologically, the Lake George area hosts a complex polymetallic system characterized by antimony, gold, molybdenum and tungsten mineralization. The mineralization occurs mainly within Ordovician sedimentary and volcanic rocks situated along the contact with the Lake George granodiorite intrusion. Structural controls, including north- and northwest-trending faults and en echelon vein systems, play a critical role in localizing mineralized zones. Antimony is found primarily as stibnite, typically in quartz-carbonate veins ranging from one to two metres in thickness that dip gently to the north. Several of these veins, along with associated gold-bearing systems, were developed historically in a series of underground workings that extended over two kilometres along strike and to depths exceeding 400 metres.

Mining at Lake George dates back to the late 1800s, with several phases of modern production between the 1970s and 1990s. Between 1972 and 1981, the operation produced approximately 34,000 tonnes of concentrate grading 65 to 66 per cent antimony while a subsequent phase from 1985 to 1990 mined roughly one million tonnes of mineralized material averaging about 4 per cent Sb. The mine infrastructure included three shafts and development on roughly 10 underground levels, with processing facilities and a tailings impoundment on site. Despite its strong production history, operations ceased largely due to declining antimony prices rather than depletion of the resource potential.

Today, Hertz Energy is conducting a comprehensive data compilation and regional exploration program over its 100-per-cent-owned mineral claims, which cover about 10 kilometres of strike length along favourable stratigraphy adjacent to the intrusive contact. Planned work includes geological mapping, prospecting, and biochemical and soil geochemistry, along with ground and high-resolution airborne geophysics to identify new targets for drilling. The company's exploration focus is not only on the historical high-grade stibnite veins but also on the potential for additional tungsten and gold-rich and polymetallic mineralization within the broader structural corridor.

The company's Tungmony project includes approximately 10 kilometres of prospective strike length across favourable geological formations, including sediments near intrusive contacts, enhancing the likelihood of discovering mineralization and extending the high-grade mineralization found at the adjacent Lake George antimony mine. Beyond antimony, the company's Lake George antimony-gold-tungsten claim package holds potential for gold, molybdenum and tungsten, among other critical minerals.

The project benefits from its location within a well-developed mining jurisdiction with excellent infrastructure, including road access, power and a skilled local work force. Moreover, antimony has been designated a critical mineral in Canada and many other jurisdictions, increasing the strategic importance of deposits like Lake George. The project benefits from several existing factors, such as strong commodity prices, historical high-grade production, existing infrastructure and large-scale geological potential, positioning Lake George as a promising opportunity for the resurgence of antimony, tungsten and gold exploration in Atlantic Canada.

Qualified person statement

All scientific and technical information in this news release has been reviewed and approved by Paul Teniere, PGeo, a geological consultant to the company and considered a qualified person for the purposes of National Instrument 43-101.

About antimony/tungsten-in short supply

In August, 2024, China announced antimony export restrictions, which take effect on Sept. 15, 2024 (source: Reuters, Aug. 28, 2024) and are expected to have significant implications for the global antimony supply chain. China's announcement of antimony export restrictions has added fuel to a red-hot market and opens another potential flashpoint with the West for control of critical minerals. Antimony is a little-known metal with multiple applications. Antimony's largest end use is as a flame retardant, but it is also found in solar panels and batteries. The U.S. Department of the Interior has designated it a critical mineral because it is also essential for armour-piercing ammunition, infrared sensors and precision optics.

Antimony prices have nearly doubled since the start of 2025 to a record $22,750 per tonne in part because of shrinking exports from major producers and a global deficit of the metal. China's exports are in medium-term decline due to higher demand from its solar energy sector while Russian supply has been crimped by falling output and Western sanctions. The flow from other big producing nations such as Vietnam, Tajikistan and Myanmar has been disrupted by the rerouting of shipments from the Red Sea due to Houthi attacks on shipping.

Analysts estimate the market was already looking at a 10,000-ton shortfall before China's export restrictions. These new controls are not targeted at any specific country, but Chinese authorities can refuse licences to export to individual end-user companies or countries as they see fit.

The global tungsten market is experiencing a severe supply crunch in 2025-2026, driven by a combination of Chinese export restrictions, reduced production quotas, and soaring demand from high-technology and defence industries, leading to record-high prices.

Option grant

Hertz Energy is pleased to announce the company has granted, subject to regulatory approval, an aggregate of 1.1 million stock options to directors, officers, employees and consultants of the company, pursuant to the terms of the company's omnibus plan. The options are exercisable for a period of three years from the date of grant at the price of 32 cents per share. The options vest immediately are subject to the provisions of the omnibus plan and the policies of the Canadian Securities Exchange.

About Hertz Energy Inc.

The company is a British Columbia-based junior exploration company primarily engaged in the acquisition and exploration of energy metal mineral properties. The company's lithium exploration projects include the AC/DC and Agastya lithium projects in James Bay, Quebec. Hertz Energy's 100-per-cent-owned Harriman antimony project in the Gaspe region of Quebec and the Lake George antimony-tungsten project in New Brunswick are part of the company's growing property portfolio.

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