Mr. Jon Cherry reports

PERPETUA RESOURCES AWARDED UP TO $6.9 MILLION IN DEFENSE FUNDING TO FURTHER ADVANCE A FULLY DOMESTIC ANTIMONY TRISULFIDE SUPPLY CHAIN

Perpetua Resources Corp. has been awarded up to $6.9-million in additional funding from the United States Army via the Defense Ordnance Technology Consortium (DOTC). The funding builds on the $15.5-million awarded to the company by the DOTC under an ordnance technology initiative agreement (OTIA) in August, 2023. The funds are being applied to testing intended to demonstrate the feasibility of using material sourced from Perpetua's Stibnite gold project to produce military-specification antimony trisulphide, a critical component in certain munitions and advanced defence systems. The OTIA is intended to fund the development and delivery of a flexible, modular pilot plant to the U.S. Army to process antimony and other materials of Department of Defense interest. The additional funding is intended to enable Perpetua to expand material sampling and to increase the scope and size of the flexible, modular pilot plant that was contemplated under the original OTIA.

"We are honoured to continue our work with the U.S. Army to secure a domestic source of antimony trisulphide," said Jon Cherry, president and chief executive officer of Perpetua Resources. "Advancing America's capabilities to process minerals critical to national defence is essential for our long-term mineral independence and resilience. We are proud to play our part in furthering the army's 'ground-to-round' critical-minerals strategy."

This award is part of a broader partnership between Perpetua Resources and the Department of Defense to secure domestic sources of critical minerals. In 2023, as part of the OTIA, Perpetua received an award worth up to $15.5-million through the DOTC program to demonstrate a fully domestic antimony trisulphide supply chain. This supplemental award allows the company to expand the research already in progress under the OTIA and support the U.S. Army's objective of establishing a fully domestic ground-to-round antimony trisulphide supply chain. With the receipt of this latest additional funding, Perpetua has now been awarded, in the aggregate, more than $80-million by the Department of Defense.

"Antimony trisulphide is an essential and non-replaceable component to over 300 types of munitions, making it important to source in America. Establishing a fully domestic supply chain of this critical mineral is foundational to keeping America's warfighters safe," said Colonel Steven Power, project manager, maneuver ammunition systems at the Picatinny Arsenal.

Under the OTIA, Perpetua will be reimbursed for these activities on a cost-plus-fixed-fee basis over the period of performance, which was extended through the end of calendar year 2026 in connection with the additional award. The aggregate total funding amount of up to $22.4-million under the OTIA is subject to adjustment by the DOTC based on scope, costs, budget or other factors as the program advances. Perpetua will be entitled to reimbursement for all costs incurred under the agreement.

The project, which is expected to supply up to 35 per cent of U.S. antimony demand during its first six years of operations based on the 2023 United States Geological Survey antimony commodity summary, represents a crucial step toward restoring American supply chain resilience. In 2024, China, which controls the majority of the global antimony market, cut off antimony exports to the United States. In addition to providing for American national security, the project is designed to create hundreds of family-wage jobs, restore fish access to critical spawning habitat, address legacy environmental contamination, and improve water quality at a historically abandoned mine site.

About Perpetua Resources Corp.

Perpetua Resources, through its wholly owned subsidiaries, is focused on the exploration, site restoration and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by the Stibnite gold project. The project is one of the highest-grade open-pit gold deposits in the United States and is designed to apply a modern, responsible mining approach to restore an abandoned mine site and produce both gold and the only mined source of antimony in the United States. Perpetua Resources has been awarded a technology investment agreement (TIA) of $59.2-million in Defense Production Act Title III (DPA) funding to advance construction readiness and permitting of the project. Antimony trisulphide from Stibnite is the only known domestic source of antimony that can meet U.S. defence needs for many small arms, munitions and missile types.

We seek Safe Harbor.