Mr. Murray Nye reports

DEMESNE RESOURCES LTD. RESPONDS TO CHINA TIGHTENING TUNGSTEN EXPORT CONTROLS BY PLANNING TO UPDATE HISTORICAL RESOURCES AT PAST-PRODUCING IMA TUNGSTEN MINE

In response to China's intention to restrict tungsten exports, Demesne Resources Ltd. plans to update and define the historical resources of the past-producing, Idaho-based IMA mine tungsten-molybdenum property, while exploring the opportunity to bring onshore tungsten mining and production capabilities into the United States. Key to the process will be defining and finalizing the scope of work needed to complete an updated National Instrument 43-101 technical report and mineral resource estimate. Amidst a backdrop of China controlling above an estimated 80 per cent of global tungsten extraction and processing, and the absence of domestic tungsten producers in the U.S., China's planned export restrictions underscore the need for a reliable, domestic supply of defence critical metals for America.

Demesne's chief executive officer, Murray Nye, commented: "With the option to explore and develop the IMA mine in Idaho, we find ourselves in the right place at the right time with the potential for domestic tungsten production. The IMA mine is a past producer. It's sitting on patented ground and is readily permittable for exploration. In the near term, we hope to renew the IMA mine's historic resources, add resource tonnes and drive toward a mine restart. Historically, capital has been invested in IMA over many years to advance the project by junior and senior mining exploration companies, including the Bradley Mining Co., Amax and Anglo-American subsidiary Inspiration Development. Now, it's in the hands of the experienced Demense's team to determine the next chapter in the IMA mine's productivity."

Tungsten is listed as a critical metal by the U.S. departments of energy and defence, the U.S. Geological Survey, and Canada's Ministry of National Defence. Following former U.S. President Donald Trump's presidential election victory, China's Commerce Ministry announced new rules that will take effect on Dec. 1, 2024, tightening export controls on dual-use technologies and items (that is, used for civilian and military purposes), including tungsten. The move is an extension of China's continuing tightening of export controls on critical materials in response to America's wide-ranging export controls on semiconductor and artificial intelligence technologies.

In addition to potentially updating and defining the IMA mine's historical resources with an updated NI 43-101 technical report and mineral resource estimate, Demesne also expects to define areas warranting additional exploration. To help identify potential exploration targets, the company is seeking to digitize historical drilling records, assay data/production volumes, and construct digital geological models in preparation for subsequent additional drilling and exploration. To finance the initial work on the IMA mine, Demesne announced a $2-million non-brokered private placement of common shares on Nov. 14, 2024.

The company will provide continuing updates as available on the IMA mine development.

About Demesne Resources Ltd.

Demesne is a British Columbia-based company involved in the acquisition and exploration of magnetite mineral properties. The company's Star project consists 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.

Demesne has also entered into an option agreement to acquire a 100-per-cent interest in the IMA mine project, a past-producing underground tungsten mine situated on 22 patented claims located in east-central, Idaho, United States.

We seek Safe Harbor.