Mr. David O'Brien reports

STUHINI ANNOUNCES OPTION OF RED HILLS SILVER PROPERTY

Stuhini Exploration Ltd. has entered into an option agreement with Red Hills Project LLC (RHP) dated Oct. 25, 2024, whereby Stuhini can acquire a 100-per-cent interest in RHP's Red Hills property, located in White Pine county in Nevada.

Red Hills is a polymetallic, carbonate replacement deposit (CRD) target located approximately 68 kilometres (km) northeast of Ely, Nev., in the central portion of the Red Hills in White Pine county. The property comprises 27 unpatented lode claims, covering 557.8 acres, and is located in a favourable structural and lithostratigraphic setting. Access to the property from Ely is approximately 137 km by paved and county-maintained roads.

From 1908 to 1918, the property had limited historic production from gossan pods accessed by three adits, totalling 229 ounces (oz) of gold (Au), 35,029 oz silver (Ag), 550 pounds (lb) of copper (Cu) and 789,782 lb of lead (Pb). There has been limited drilling on the property with the best historic result being 17 metres (m) of 129.7 grams per tonne (g/t) Ag, 0.15 g/t Au, 2.42 per cent Pb and 0.92 per cent zinc (Zn), including 12 m of 179.2 g/t Ag, 0.20 g/t Au, 3.29 per cent Pb and 1.18 per cent Zn.

The lithostratigraphic units include the Notch Peak carbonates, which are unconformably overlain by Pogonip Group carbonates. The Eureka quartzite, Hanson Creek and Lone Mountain dolostones overlay the latter lithostratigraphic group. The majority of the mineralization is hosted in Pogonip Group carbonates.

Alteration in the carbonates is significant and includes widespread recrystallization of the limestones, local calc-silicate alteration, extensive hematite staining, the formation of jasperoids along structures and calcite veining possibly related to decalcification at depth.

Stuhini president and chief executive officer Dave O'Brien commented: "After a long search, we are delighted to obtain on option on the Red Hills property, which attracted strong interest from our team ever since the initial data review. We are also pleased to obtain this property on reasonable and non-dilutive terms as we pursue strategic options on our flagship Ruby Creek molybdenum deposit. Given the apparent footprint of the CRD target, the company has dispatched staking crews and a geological team to expand the current land position. With the silver market starting to generate strong investor interest, particularly in the southwest USA, we believe this opportunity has the potential to create significant shareholder value."

During the 30-year term of the agreement, Stuhini must make the minimum payments (until the commencement of commercial production on the property) and incur the following qualified expenditures, as shown in the attached table, to keep the option in good standing.

The only committed obligations are the $20,000 (U.S.) cash payment on the effective date and the work commitment to incur $75,000 (U.S.) in qualified expenditures in the first year. The balance of the minimum payments and qualified expenditures are all at the company's election should it wish to maintain the option after year 1.

In addition to the minimum payments, Stuhini must make certain milestone payments as follows:

• A one-time payment of $250,000 (U.S.) upon completion of a technical report on the property disclosing a resource containing at least 250,000 troy ounces of gold equivalent;
• A one-time payment of $500,000 (U.S.) on completion of a positive feasibility report on the property;
• A one-time payment of $1-million (U.S.) on commencement of commercial production.

Stuhini may exercise the option at any time by making a cash payment of $400,000 (U.S.) (in addition to any minimum payments and milestone payments already made) and completing the cumulative qualified expenditures. Upon exercise of the option, RHP will be entitled to a 2.5-per-cent gross return royalty on the property, subject to Stuhini's right to purchase 60 per cent of the royalty, (representing 1.5 per cent of the gross returns) for $1.5-million (U.S.) within 30 days of the feasibility report milestone payment accruing. Minimum payments made after the exercise of the option shall be credited against the royalty payments. The technical disclosures contained in this news release have been approved by Ehsan Salmabadi, PGeo, and vice-president, exploration and project development, for Stuhini, who is a qualified person for the purposes of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Stuhini Exploration Ltd.

Stuhini is a mineral exploration company focused on exploration and development of precious and base metals properties in Western Canada and southwestern United States. The company's portfolio of exploration properties includes the flagship Ruby Creek property, 14 km east of Atlin, B.C., the Que project, 70 km north of Johnson's Crossing, Yukon, the South Thompson nickel project, 35 km northwest of Grand Rapids, Man., the Big Ledge property, 57 km south of Revelstoke, B.C., the Red Hills project in Nevada and the Lindsay project in southeastern Arizona.

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