Mr. Chris McLeod reports

PACIFIC IMPERIAL ANNOUNCES CLOSING OF DEBT SETTLEMENT

Further to Pacific Imperial Mines Inc.'s press release dated Aug. 26, 2026, the company has completed its debt settlements with Chris McLeod (chief executive officer and director of the company) and Peter Holbek (director of the company) to fully settle debt owed by the company to the creditors in the aggregate amount of $149,306.59 by issuing an aggregate of 9,953,772 common shares of the company to the creditors at a deemed price of 1.5 cents per common share. The shares issued to the creditors are subject to a hold period expiring Jan. 12, 2027, in accordance with applicable securities laws and the policies of the TSX Venture Exchange. See the press release of the company dated Aug. 26, 2026, for further details.

Early warning disclosure

Mr. McLeod reports that he obtained 8,022,041 common shares of the company for the settlement of loans to the company totalling $120,330.61 pursuant to the debt settlement. Mr. McLeod has triggered the requirement to file an early warning report and include the early warning disclosure in this news release as his ownership and control and direction over the securities of the company has increased to more than 10 per cent of the issued and outstanding common shares of the company.

Prior to the completion of the debt settlement, Mr. McLeod beneficially owned, or exercised control or direction over, 8.25 million common shares and 1.5 million stock options, representing approximately 9.97 per cent of the issued and outstanding common shares of the company on a non-diluted basis (and approximately 11.57 per cent of the issued and outstanding common shares on a partially diluted basis assuming the exercise of Mr. McLeod's stock options). On completion of the debt settlement, Mr. McLeod beneficially owns, or exercises control or direction over, 16,272,041 common shares and 1.5 million stock options, representing approximately 17.55 per cent of the issued and outstanding common shares of the company on a non-diluted basis (and approximately 18.86 per cent of the issued and outstanding common shares on a partially diluted basis assuming the exercise of Mr. McLeod's stock options).

Mr. McLeod has no present intention to dispose of or acquire further securities of the company. In accordance with applicable securities laws, Mr. McLeod may, from time to time, acquire additional securities of the company in the open market or otherwise, and reserves the right to dispose of any or all of such securities from time to time, and to engage in similar transactions with respect to such securities, the whole depending on market conditions, the business and prospects of the company, and other relevant factors.

An early warning report respecting this disclosure in security holdings will be filed and available for viewing on SEDAR+ under the profile of the company. To obtain a copy of the early warning report, please contact Mr. McLeod by telephone at 604-669-6332, or at c/o Pacific Imperial Mines Inc., suite 400, 1681 Chestnut St., Vancouver, B.C., Canada, V6J 4M6.

About Pacific Imperial Mines Inc.

Pacific Imperial is a mineral exploration company based in Vancouver, Canada, engaged in the acquisition, exploration, evaluation and development of mineral properties in an acceptable risk environment. The company's current focus is on the Brownell property in Saskatchewan, and the Babine and Fenton properties in British Columbia.