Mr. Jonathan Hamel reports

MOSAIC MINERALS ANNOUNCES CLOSING OF OVERSUBSCRIBED OFFERING AND ACQUISITION OF THE GOLDEN ISLAND PROJECT

Mosaic Minerals Corp. has closed a private placement, pursuant to which it issued 6,008,571 flow-through units of the company at a price of seven cents per flow-through unit and 7.32 million units at a price of five cents per unit for gross proceeds of $700,700, an increase of 29 per cent compared with the initial target of $500,000 previously announced.

"We are very happy to close this private placement with interest exceeding our initial expectations. Encouraged by the current structural strength of the gold market, we are now focusing 100 per cent of our efforts on a fully funded drilling campaign to be carried out on the Golden Island property in the coming winter months," said Jonathan Hamel, president and chief executive officer of Mosaic Minerals.

Each flow-through unit consists of one common share of the company to be issued as a flow-through share within the meaning of the Income Tax Act (Canada) and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at a price of nine cents for a period of 12 months from the date of issuance.

Each unit consists of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at a price of seven cents for a period of 24 months from the date of issuance.

The gross proceeds from the sale of the flow-through units will be used by the company to incur eligible Canadian exploration expenses on the Golden Island project that will qualify as flow-through mining expenditures as such terms are defined in the Income Tax Act (Canada) related to the company's projects in Canada. All qualifying expenditures will be renounced in favour of the subscribers of the flow-through units effective Dec. 31, 2026.

In connection with the offering, the company paid finders' fees of 8 per cent in cash ($20,000 total) and issued 285,714 finder warrants total to two arm's-length intermediaries. Each finder warrant is exercisable to acquire one additional common share at a price of seven cents per warrant for a period of 24 months from issuance.

All securities issued pursuant to the offering will be subject to a hold period of four months and one day ending on April 30, 2026. The placement is subject to final approval by the Canadian Securities Exchange.

Golden Island project acquisition

Mosaic is also pleased to announce that it has completed the acquisition of the Golden Island project. The company made a $150,000 cash payment and issued five million shares and 2.5 million warrants to three independent prospectors per the agreement previously disclosed.

The Golden Island project is accessible year-round by Regional Road 113, which connects the towns of Val d'Or and Senneterre. The property is located on Tiblemont Island and is accessible by boat from the Tiblemont Lake boat launch just before the town of Senneterre. The site contains the remains of the former Tiblemont Island gold mine. This mine was discovered in the early 1930s but never reached commercial production.

Historical work and resources

Extensive work was undertaken following the discovery of the property, then known as mining concession 282, in 1932 by Dr. Theodore Koulomzine, a renowned geologist/geophysicist, until its abrupt abandonment at the outbreak of the Second World War in 1939. During this period, Tiblemont Consolidated built a camp with multiple permanent buildings, all of which are now gone. Nearly 3,350 linear metres of trenches were dug, as well as a three-compartment vertical shaft sunk to a depth of 155 metres. A 360-metre-long adit was also driven into the hillside at lake level, subsequently connected to the shaft at the 100-metre level. Underground development extends to 1,800 metres at the 360- and 485-metre levels. A five-tonne mill was also in operation. Documents from that time indicate several gold-bearing zones located near the surface that could be mined using open-pit methods. A resource estimate, not compliant with Regulation 43-101, indicates 391,000 tonnes at a grade of approximately 2.8 grams per tonne at a depth of just under 60 metres (GM41028). Multiple exploration programs have been carried out in previous years. Notably, in 1982, Soquem completed a short program of eight drill holes (1,150 metres), three of which were drilled in the main zone (see Table 1).

The resource estimates described in this document are considered historical resources and do not comply with the requirements of National Instrument 43-101, Standards of Disclosure for Mineral Projects. The company does not consider the historical estimate to be a current mineral resource and does not assert that any or all of the mineralization described will be subsequently converted into mineral resources or mineral reserves defined in accordance with NI 43-101.

It should also be noted that drill hole 82-5, located approximately one kilometre northwest of the main zone, intersected a 4.7-metre interval grading 1.31 grams per tonne gold. This drill hole is associated with the same magnetic anomaly as the one linked to the main shaft.

2024 exploration campaign

During the 2024 sampling, the presence of numerous quartz veins was noted in the area surrounding the trenches and the former main shaft. Further fieldwork will be necessary to map and sample all of these veins, which appear to form a gold-bearing corridor several tens of metres wide. The gold-bearing zone is in contact with a high-amplitude magnetic anomaly several kilometres long trending in a northwest-southeast direction.

Qualified person

The scientific and technical information of Mosaic Minerals included in this press release has been reviewed and approved by Gilles Laverdiere, PGeo, vice-president, exploration, of Mosaic Minerals and a qualified person under NI 43-101 respecting information concerning mining projects.

About Mosaic Minerals Corp.

Mosaic Minerals is a Canadian mining exploration company listed on the Canadian Securities Exchange developing the Golden Island project, located in Abitibi, Quebec, Canada.

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