Mr. Jonathan Egilo reports

AXO METALS SECURES MAJOR ENVIRONMENTAL PERMIT APPROVAL; CLEARS PATH FOR PRODUCTION AT THE SAN ANTONIO GOLD PROJECT

The Mexican Federal Environmental Department (SEMARNAT) has issued a positive decision approving the environmental impact statement (Manifestos de Impacto Ambiental or MIA) for Axo Metals Corp.'s San Antonio gold project located in the state of Sonora.

This landmark approval validates the environmental merits of the San Antonio project and grants the primary authorization required for the construction and operation of the mine.

"The receipt of the MIA is the definitive green light from SEMARNAT that we have been working toward," says Jonathan Egilo, president and chief executive officer. "We are excited and committed to leveraging our existing infrastructure at San Antonio and returning the project to production. Today's announcement marks a significant milestone. Axo is committed to responsible resource development, and we will continue to work to create long-term value for the people of Sonora and our shareholders."

With the MIA in hand, Axo Metals is positioned for near-term production. The newly issued MIA covers all existing infrastructure and current resources across all deposits at San Antonio. Prior to beginning mining at Sapuchi, Golfo de Oro and the California deposits, the company is finalizing a standard administrative follow-up regarding the change of use of soils (CUS). The CUS application was submitted earlier this year. The company views the CUS as a routine ancillary step and anticipates approval prior to year-end. The company's core infrastructure -- including the past-producing Luz del Cobre open pit, existing stockpiles, waste dumps, carbon-in-column processing facility and camp -- is fully permitted and requires no further soil-use authorizations.

Axo Metals remains dedicated to responsible resource development and continues to enjoy a strong, collaborative relationship with the local communities in Sonora as it advances toward gold production.

About Axo Metals Corp.

Axo Metals is a Canadian mineral exploration company engaged in the exploration and development in Mexico. The company holds two projects. The San Antonio project is located in the state of Sonora, and is in advanced development. Total resources at San Antonio stand at 576,000 ounces Au (gold) and 1.37 moz (million ounces) Ag (silver) grading 1.20 g/t Au and 2.9 g/t Ag in the indicated category, with 544,000 oz Au and 1.76 moz Ag grading 1.02 g/t Au and 3.3 g/t Ag in the inferred category across all deposit types (oxide, transition and sulphide). Axo's second project is the La Huerta property, a new copper discovery in Jalisco, Mexico. Initial exploration has yielded high-grade copper both at surface through sampling programs and at depth through initial drilling. The company is focused on continuing to define near-surface mineralization along the La Huerta trend, expanding mineralization at depth and targeting new discoveries in an underexplored district.

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