Mr. Derek Macpherson of Gold79 reports

GOLD79 ANNOUNCES MERGER WITH BULLET EXPLORATION CREATING A STRONGER SOUTHWEST U.S. GOLD EXPLORER

Gold79 Mines Ltd. and Bullet Exploration Inc. have entered into a definitive amalgamation agreement dated Sept. 3, 2024, whereby Gold79 has agreed to acquire all of the issued and outstanding common shares of Bullet. The transaction will create a well-financed gold exploration company focused on the southwestern United States. The company will be focused on delivering a maiden resource at its Gold Chain project in Arizona; exploring the newly acquired Jefferson North gold-silver project in Nevada to define its scale potential; and continue to work with Kinross to get the maiden drill program at Jefferson Canyon in Nevada under way.

Under the terms of the transaction and subject to Bullet shareholder approval, Bullet shareholders will receive one common share of Gold79 for every three common shares of Bullet held. In addition, each common share purchase warrant and stock option of Bullet outstanding immediately prior to completion of the transaction shall be adjusted in accordance with the exchange ratio and replaced with common share purchase warrants and stock options of Gold79, respectively. Existing shareholders of Gold79 and Bullet will hold approximately 54 per cent and 46 per cent, respectively, of the outstanding Gold79 shares on closing of the transaction, on a fully diluted, in-the-money basis (but prior to the completion of the planned equity financing described herein). In connection with the transaction, Gold79 plans to raise $4-million (or such other amount as may be agreed by the parties).

Derek Macpherson, president and chief executive officer of Gold79, stated: "The transaction between Gold79 and Bullet is a unique opportunity to consolidate exploration companies in the southwest U.S. The combined entity is going to have multiple projects at various stages of exploration, be well funded and have improved access to capital. Importantly for shareholders, the planned equity financing should provide the company the capital necessary to deliver a maiden resource at Gold Chain. We are excited to bring together the teams of these two companies that have complementary skill sets, which we expect to bear fruit as we move the combined company forward."

Ehsan Agahi, president and chief executive officer of Bullet, stated: "This merger is a transformative step for Bullet shareholders, offering immediate exposure to a diverse portfolio of high-potential gold projects in the southwest U.S. By joining forces with Gold79, we strengthen our ability to advance these assets and unlock their full value. The combined expertise and resources should accelerate our growth trajectory and create substantial value for all stakeholders."

Strategic rationale for the transaction:

• Creation of a multiproject southwestern U.S. gold explorer:
  • Gold Chain project, Arizona:
    • Recent drilling returned 9.1 metres of 51.09 grams per tonne gold (GC23-28) and 44.2 metres of 2.01 grams per tonne gold (GC23-23);
    • Recently defined a from-surface exploration target of 15.6 million to 31.2 million tonnes grading 1.5 grams per tonne gold to 2.5 grams per tonne gold; the potential quantity and grades are conceptual in nature; there has been insufficient exploration drilling to define a mineral resource and it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource;
    • Short path to a maiden resource;
  • Jefferson North gold-silver project, Nevada:
    • Recent sampling returned 56.7 grams per tonne gold and 29.9 grams per tonne gold from the East Adit No. 1 underground drive;
    • Maiden drill program scheduled to be completed in the fall of 2024;
    • Approximately 30 kilometres from Gold79's Jefferson Canyon project providing regional synergies;
  • Jefferson Canyon gold-silver project, Nevada:
    • Historical results include 41.2 metres of 6.4 grams per tonne gold and 402 grams per tonne silver (drill hole GJ-081; CR Exploration Company (CREC); 1983 to 1985);
    • Partnered with Kinross, operator of the adjacent Round Mountain mine and a top 10 global gold producer;
    • Permitting advanced for a maiden drill program;
  • Tip Top gold-silver project, Nevada:
    • Historical results include 9.14 metres at 14.42 grams per tonne gold (drill hole T98-14; Dos Amigos; 1998; reverse circulation drilling);
• Financial strength to deliver a maiden resource: the planned $4-million equity financing should provide the necessary funds to deliver a maiden resource at the Gold Chain project while also allowing the company to advance its other projects;
• Increased scale: the combined entity is expected to have a larger market capitalization;
• Multiple exploration projects: the combined entity will have four exploration-stage projects in the southwestern United States;
• Operational synergies: the synergy of the combined exploration and management teams of the combined entity is expected to reduce costs and result in a higher percentage of capital raised being used for exploration.

Benefits to Gold79 shareholders:

• Better access to Capital: Bullet's management and directors, along with its existing shareholders, are expected to improve the company's access to capital as it works to deliver a maiden resource at Gold Chain.
• Adding a quality project in a well-understood district: Bullet's Jefferson North project is close to Gold79's existing Jefferson Canyon project. Gold79's understanding of the geology of this area is expected to allow the company to quickly advance this project.
• Increased scale: The combined entity is expected to have a larger market capitalization.
• Improved team: Management and directors from Bullet are expected to be selectively added to Gold79's management team and board of directors. These additions are expected to improve the skill set of the combined team.

Benefits to Bullet shareholders:

• Exposure to Gold Chain: Bullet shareholders gain exposure to the Gold Chain project, which is expected to have a short path to a maiden resource.
• Gold79 management team: Bullet shareholders should benefit from the technical expertise of the Gold79 team, which has had exploration success over the last three years with limited budgets.
• Exposure to partner-financed project: Bullet shareholders gain exposure to the Jefferson Canyon project, where the next round of drilling is expected to be financed by Kinross and the potential exists for a $5-million (U.S.) payment to the company if Kinross exercises its option.
• Increased scale: The combined entity is expected to have a larger market capitalization.

Transaction details

Under the terms of the transaction and subject to Bullet shareholder approval, Bullet shareholders will receive one Gold79 share for every three Bullet shares held. In addition, each common share purchase warrant and stock option of Bullet outstanding immediately prior to completion of the transaction shall be adjusted in accordance with the exchange ratio and replaced with common share purchase warrants and stock options of Gold79, respectively. Existing shareholders of Gold79 and Bullet will hold approximately 54 per cent and 46 per cent, respectively, of the outstanding Gold79 shares on closing of the transaction on a fully diluted, in-the-money basis (but prior to the completion of the planned equity financing).

The transaction will be effected by way of a three-cornered amalgamation, whereby Gold79, through its wholly owned subsidiary, 1492834 B.C. Ltd. (Subco), will amalgamate with Bullet forming Amalco. Amalco will become a wholly owned subsidiary of Gold79. Bullet will cease to be a reporting issuer and the Bullet shares will be delisted from the TSX Venture Exchange.

On the effective date of the transaction, the board of directors of Gold79 will be reconstituted such that three current directors of Gold79 will remain on the board and Gold79 will appoint two additional director nominees provided by Bullet. The company plans to provide additional details on the composition of the go-forward management team, board and advisory board at a later date.

In addition to the requisite Bullet shareholder approval, the transaction is subject to applicable regulatory approvals, including the approvals of the TSX-V and the satisfaction of certain other closing conditions customary in transactions of this nature as well as customary interim period covenants regarding the operation of each of the companies' respective businesses. The agreement also provides for a mutual condition of the parties that a $4-million equity financing (or such other amount as may be agreed by the parties) be completed immediately following and contingent upon the closing of the transaction. The agreement contains customary provisions, including fiduciary-out provisions in favour of both Gold79 and Bullet, non-solicitation and the right to match alternative proposals for each party. A $200,000 termination fee may be payable to Gold79 or Bullet under certain circumstances.

Subject to the satisfaction of these conditions, Gold79 and Bullet expect that the transaction will be completed on or before Nov. 30, 2024. Details regarding these and other terms of the transaction are set out in the agreement, which will be available under the SEDAR+ profiles of Gold79 and Bullet.

Additional information

Further details about the transaction, including further particulars of the business of Gold79, Bullet and the combined entity, will be provided in the management information circular of Bullet to be prepared and filed in respect of the annual and special meeting of the Bullet shareholders to be held in Q4 2024.

All information contained in this press release with respect to Gold79 and Bullet was supplied for inclusion herein by the respective parties and each party and its directors and officers have relied on the other party for any information concerning the other party.

Completion of the transaction is subject to a number of conditions, including, but not limited to, TSX-V acceptance and the requisite Bullet shareholder approval. The transaction cannot close until the required Bullet shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the agreement or in the management information circular of Bullet to be prepared in connection with the annual and special meeting of the Bullet shareholders, any other information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Gold79 and Bullet should be considered highly speculative.

Qualified person and quality assurance/quality control

Robert Johansing, MSc (economic geology), PGeo, the company's vice-president, exploration, for Gold79, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical content of this press release related to the Gold Chain, Jefferson Canyon and Tip Top projects. The qualified person has not verified the historical analytical data or the QA/QC procedures of previous operators related to historical drill hole intercepts at the Jefferson Canyon and Tip Top projects.

Garry Clark, PGeo, is a qualified person as defined in NI 43-101 and has reviewed and approved the technical content of this press release related to the Jefferson North project. Mr. Clark is a director of Bullet.

About Gold79 Mines Ltd.

Gold79 Mines is a TSX-V-listed company focused on building ounces in the southwestern United States. Gold79 holds 100-per-cent earn-in option to purchase agreements on three gold projects: the Jefferson Canyon gold project and the Tip Top gold project, both located in Nevada, United States, and, the Gold Chain project, located in Arizona, United States. In addition, Gold79 holds a 32.3-per-cent interest in the Greyhound project in Nunavut, Canada, under joint venture by Agnico Eagle Mines Ltd.

About Bullet Exploration Inc.

Bullet Exploration is a TSX-V-listed company focused on high-potential gold and silver projects in the southwestern United States. The flagship Jefferson North gold-silver project in Nevada, near major producers such as Kinross's Round Mountain, spans 1,068 hectares and 132 claims, offering significant exploration potential. Bullet also holds the Copper Canyon property in British Columbia, targeting a copper-gold porphyry deposit. With a tight capital structure and a long-term vision for growth, Bullet is committed to advancing its projects and creating lasting shareholder value.

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