Mr. Warwick Smith reports

AMERICAN PACIFIC CLOSES TRANSACTION TO GAIN USD$10M AND 100% INTEREST IN THE PALMER VMS PROJECT IN ALASKA

American Pacific Mining Corp. has closed its previously announced transaction with Dowa Metals & Mining Alaska Ltd. to acquire Dowa's interest in Constantine Mining LLC, the holder of the Palmer VMS (volcanic massive sulphide) project. American Pacific would once again like to thank Dowa for its collaborative approach to work at Palmer over the years.

Transaction terms

Pursuant to the terms of the purchase agreement executed Nov. 15, 2024, Constantine North Inc., a wholly owned subsidiary of American Pacific, has acquired Dowa's interest in Constantine Mining LLC and Dowa has paid American Pacific $10-million (U.S.) in exchange for providing an affiliate of Dowa with an option to acquire up to 50 per cent of the zinc concentrate produced for the initial year of production and each subsequent year of production at the project, and the provision of certain indemnities in the purchase agreement. With the close of the acquisition of the Dowa interest, American Pacific has a consolidated 100-per-cent interest in the project.

"This transaction marks a pivotal moment for American Pacific," commented American Pacific's chief executive officer, Warwick Smith. "We've now obtained full ownership of a project with proven mineral resources and vast untapped regional discovery potential, while also securing substantial funding to ramp up exploration of key assets across our portfolio, paving the way for significant resource growth."

Palmer VMS project

The Palmer VMS project is an advanced-stage copper-zinc-gold-silver exploration project in southeastern Alaska with road access and located only 60 kilometres (37 miles) from the deep sea port at Haines, Alaska. More than $116-million (U.S.) has been spent to-date at Palmer, with National Instrument 43-101 mineral resources defined at the Palmer and AG deposits. Recent drilling (2023 to 2024) has highlighted the potential to define extremely rich copper zones and the Palmer project includes numerous drill-ready, high-grade prospects that define more than 15 kilometres of favourable mineral trends, all hallmarks of a significant massive sulphide system.

Qualified person statement

The technical information in this news release regarding the Palmer project has been reviewed and approved by Michael Vande Guchte, PGeo, vice-president of exploration for the Palmer project and a qualified person (QP) as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About American Pacific Mining Corp.

American Pacific is a precious and base metals explorer and developer focused on opportunities in the Western United States. The company has two flagship assets: the 100-per-cent-owned Palmer project, a VMS project in Alaska; and the 100-per-cent-owned Madison project, a past-producing copper-gold project in Montana. For the Madison transaction, American Pacific was selected as a finalist in both 2021 and 2022 for Deal of the Year at the S&P Global Platts Metals Awards, an annual program that recognizes exemplary accomplishments in 16 performance categories. Also in American Pacific's asset portfolio are three high-grade, precious metals projects located in key mining districts of Nevada: the Ziggurat gold project, the Gooseberry silver-gold project; and the Tuscarora gold-silver project. The company's mission is to grow by the drill bit and by acquisition.

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