Mr. Terry Tucker reports

SOUTHSTONE ANNOUNCES MUTUAL TERMINATION OF AFRIUM ENERGY TERM SHEET

Southstone Minerals Ltd. has entered into a mutual termination deed with Afrium Energy Pte. Ltd., terminating the binding term sheet dated Feb. 18, 2025, as amended, in respect of the company's proposed acquisition of all of the issued shares of Afrium.

Under the term sheet, the company had agreed to acquire Afrium in consideration for 20 million common shares of the company and the grant of a 2.5-per-cent net smelter return royalty. Closing did not occur, no common shares were issued, and no royalty was granted.

The termination is by mutual consent, is effective July 6, 2026, and includes a mutual release of claims between the parties in connection with the term sheet.

Trading halt

Trading in the company's common shares has been halted on the TSX Venture Exchange since Jan. 10, 2024. As announced on May 27, 2026, the company has taken steps to address the TSX-V Policy 3.1 deficiencies underlying that halt and will continue to work toward the resumption of trading in its common shares.

We seek Safe Harbor.