An anonymous director reports

DEMESNE RESOURCES ANNOUNCES AMENDING AGREEMENT REGARDING THE STAR MINERAL PROPERTY AND LETTER OF INTENT TO ACQUIRE IMA MINE TUNGSTEN PROJECT

Further to Demesne Resources Ltd.'s news release of May 23, 2023, that the company has entered into an amending agreement dated Oct. 16, 2024 and made effective as of May 4, 2024 (the amending agreement), amending the consideration to be paid as stated in the option agreement dated effective May 11, 2022, among the company, Christopher R. Paul, Michael A. Blady and Oliver J. Friesen (collectively the optionor) by: (i) extending the period for incurring such expenditures from up to 48 months following the date of listing on the Canadian Securities Exchange (the CSE) to up to 72 months from the listing date; (ii) reducing the number of common shares in the capital of the company to be issued to the optionor from 1.65 million shares to 450,000 shares; and (iii) reducing the cash payments to be made to the optionor from $75,000 to $60,000.

Pursuant to the terms and conditions of the option agreement and for the acquisition by the company from the optionor of a 100-per-cent interest in Star Mineral property, Skeena mining division, British Columbia, Canada, the company has already incurred $100,000 for exploration expenditures on the property, issued 450,000 shares and paid a total of $30,000 in cash to the optionor.

The company is pleased to also announce that it has entered into a letter of intent (the LOI) dated Oct. 22, 2024, with IMA-1 LLC (the vendor), pursuant to which the company has been granted an option to acquire from the vendor (the proposed transaction) a 100-per-cent undivided interest (subject to a 2-per-cent royalty) in the IMA mine project located in east-central Idaho. Closing of the proposed transaction is subject to, amongst other things, the completion by the company of a satisfactory due diligence review of the IMA property, the negotiation and execution of a definitive agreement, corporate approval by the board of directors of the company, and the vendor and the approval of the CSE (collectively, the conditions precedent).

The proposed transaction is an arm's-length transaction and shareholder approval for the proposed transaction is not expected to be required by the CSE. Pursuant to the terms of the LOI, and subject to the parties satisfying the conditions precedent, the company will be granted an option to acquire a 100-per-cent interest in the IMA property in consideration for cash payments totalling $5.8-million (U.S.) to be paid in stages over an eight-year period, of which, USD$100,000 is payable upon closing the proposed transaction and an additional $150,000 (U.S.) is payable within 12 months of closing. The IMA property is subject to a 2-per-cent net smelter return royalty (1 per cent of which can be purchased by the company for $2-million (U.S.) on or before the fourth year).

About the IMA property

The IMA property is located in the Lemhi Range, east-central Idaho, near Patterson, Idaho. The vendor holds the IMA mine, with 22 patented claims on 395.98 acres. The vendor also owns additional 214.4 acres of patented ground in the IMA property area outright, in adjacent Pahsimeroi Valley.

The IMA property is a fully permitted, past-producing tungsten-molybdenum property that began as a silver mine in the 1800s, with historical tungsten-molybdenum related exploration and drilling. Approximately $15.0-million (U.S.) of capital have been spent over many years to finance and advance the project by a variety of junior and senior mining exploration companies (including Inspiration Development, a subsidiary of Anglo American), with the most recent investments being made in 2008. Between 1934 to 1982, the IMA mine produced 743,069 tonnes of ore and 3,314 tons of old tailings. From this material was produced 302 ounces of gold, 1,296,358 ounces of silver, 1,813,758 pounds of copper, 2,921,509 pounds of lead, 20,581 pounds of zinc and 198,333 standard units of WO3 (tungsten). The IMA mine is situated close to key infrastructure items and resources, including paved county roads, Tier 1 low-cost power supply, access to water rights and a mining-oriented labour force.

About Demesne Resources Ltd.

Demesne Resources is a British Columbia-based company involved in the acquisition and exploration of magnetite mineral properties. The company's sole property is the Star project, consisting of five contiguous mineral titles covering an area of approximately 4,615.75 hectares located in the Skeena mining division, British Columbia, Canada. The company has entered into an option agreement pursuant to which it is entitled to earn an undivided 100-per-cent interest in the Star project.

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