Mr. Warwick Smith reports

AMERICAN PACIFIC MINING POSITIONED TO BENEFIT FROM GROWING US COPPER DEMAND DRIVEN BY TARIFF UNCERTAINTY

American Pacific Mining Corp. has highlighted the strengthening bull case for copper in light of recent U.S. policy developments and how the company's U.S.-based copper assets are strategically positioned to benefit from these trends.

President Trump said, on Sunday, that he would impose 25-per-cent tariffs on all steel and aluminum imports and also threatened to apply levies on imported copper. U.S. metals prices, including copper, have been increasing with significant premiums ahead of potential tariffs on imports. This surge in domestic copper prices reflects growing concerns about supply constraints and highlights the increasing importance of U.S.-based copper assets.

The Financial Times recently reported that premiums for U.S. copper futures have widened to over $800 (U.S.) per tonne above London prices, the highest level since early 2020, as U.S. buyers compete to secure copper supplies in anticipation of potential tariffs. The United States relies heavily on imports for its copper needs, emphasizing the value of domestic copper supply.

Warwick Smith, chief executive officer of American Pacific, commented: "The current market dynamics and U.S. policy trends underscore the strategic value of our U.S.-based copper assets. With projects like our Madison copper-gold project in Montana and Palmer copper-zinc project in Alaska, we are well positioned to potentially supply the growing domestic demand for copper, a critical metal for the U.S. economy and clean energy transition."

Palmer copper-zinc VMS (volcanogenic massive sulphide) project, Alaska

Last year, American Pacific reported the highest-grade copper intercepts ever drilled at its Palmer project, including:

• CMR23-172 zone 1: 43.8 metres grading 6.54 per cent copper, 3.15 per cent zinc, 0.42 gram per tonne gold and 27.97 grams per tonne silver (8.22 per cent copper equivalent);
• CMR23-167 zone 1: 37.1 metres grading 4.57 per cent copper, 8.44 per cent zinc, 0.50 gram per tonne gold and 29.33 grams per tonne silver (8.40 per cent copper equivalent);
• CMR23-169 zone 1: 33.2 metres grading 5.48 per cent copper, 7.22 per cent zinc, 0.64 gram per tonne gold and 36.78 grams per tonne silver (8.95 per cent copper equivalent);
• CMR23-171 zone 1: 23.9 metres grading 9.03 per cent copper, 3.49 per cent zinc, 0.83 gram per tonne gold and 41.75 grams per tonne silver (11.15 per cent copper equivalent).

Additionally, the company recently published an updated mineral resource estimate on the project, which showed a substantial increase in contained copper (see Jan. 20, 2025, news release).

Palmer 2025 mineral resource estimate:

• Indicated: 4.77 million tonnes at 1.69 per cent copper, 5.17 per cent zinc, 0.14 per cent lead, 28.4 grams per tonne silver, 0.29 gram per tonne gold and 20.6 per cent barite (3.5 per cent copper equivalent, or 13.2 per cent zinc equivalent);
• Inferred: 12.00 million tonnes at 0.57 per cent copper, 3.92 per cent zinc, 0.47 per cent lead, 66.3 grams per tonne silver, 0.33 gram per tonne gold and 25.5 per cent barite (3.1 per cent copper equivalent, or 8.9 per cent zinc equivalent).

Madison copper-gold project, Montana

The high-grade Madison project was host to small-scale production in the early 2000s with 2.7 million pounds of copper produced at grades ranging from 20 per cent to 30 per cent copper. Historic drill highlights include:

• 8.47 metres of 40.03 per cent copper;
• 61.63 metres of 6.97 per cent copper.

More recent drilling returned additional high-grade intercepts, which confirmed the presence of widespread mineralization beyond what was historically mined (see Sept. 23, 2024, news release).

Phase I 2024 drill highlights:

• 8APMMAD24-09: 8.14 metres of 3.66 per cent copper, 29.72 metres of 2.09 per cent copper and 9.75 metres of 1.56 per cent copper, within a broader 75.13-metre zone of 0.98 per cent copper;
• APMMAD24-08: 2.90 metres of 2.41 per cent copper and 3.17 grams per tonne gold;
• APMMAD24-06: 12.34 metres of 0.88 per cent copper and 10.36 grams per tonne gold.

Underground sampling of the old mine workings also returned high grades (see Sept. 26, 2024, news release).

Sample highlights:

• MADZH24-003: 45.50 per cent copper and 2.17 grams per tonne gold;
• MADZH24-001: 31.00 per cent copper and 8.40 grams per tonne gold;
• MADZH24-002: 23.30 per cent copper and 1.90 grams per tonne gold;
• MADZH24-004: 3.19 per cent copper and 0.14 gram per tonne gold.

With $16-million in its treasury as of January, American Pacific is well financed to advance its projects and is expected to commence a phase II, 3,000-metre drill program at its high-grade Madison project beginning in March. Phase II and phase III drilling programs also aim to test deeper regional targets identified through comprehensive field mapping and rock sampling.

About American Pacific Mining Corp.

American Pacific Mining is a precious metal and base metal explorer focused on opportunities in the Western United States. The company has two flagship assets: the Madison project, a high-grade, past-producing copper-gold project in Montana; and the Palmer project, a copper-zinc volcanic massive sulphide-sulphate (VMS) project in Alaska. For the Madison transaction, American Pacific was selected as a finalist in both 2021 and 2022 for Deal of the Year at the S&P Global Platts Metals Awards, an annual program that recognizes exemplary accomplishments in 16 performance categories.

Also in American Pacific's asset portfolio are high-grade, precious metal projects located in key mining districts in Nevada, United States, including the Ziggurat gold project and the Tuscarora gold-silver district. The company's mission is to grow by the drill bit, strategic partnerships, and mergers and acquisitions.