Chief Prosecutor Declares Sangihe Priority for Illegal Mining Enforcement; Prosecutorial Action Intensifies

(TheNewswire)

June 3, 2026 – TheNewswire - VANCOUVER, B.C. - Baru Gold Corp. (BARU: TSX.V | BARUF:OTCQB) (“Baru” or the “Company”) and its subsidiary PT.Tambang Mas Sangihe (“TMS” or the “Company”) are pleased toinform shareholders that the Chief Prosecutor of North Sulawesi hasdesignated Sangihe Island a priority target for enforcement of illegalmining following a failed, large-scale mobilisation by illegalminers. 

Failed Illegal MiningMobilisation:

From November 5, 2025, to May 18, 2026, Sangihe Islandexperienced a resurgence of illegal mining. The mobilisation wasundertaken and supervised by foreign nationals, with support fromIndonesians from outside Sangihe and local day labourers. All illegaloperations have since ceased.

Until this recent attempted mobilisation, there has notbeen significant illegal mining on Sangihe since November 2024.

The mobilisation of equipment was larger and moreaggressive than the Company has ever seen. 

The foreign nationals were using over 20 excavators tobuild and prepare processing facilities capable of producingapproximately $20 million CAD every 60 days. The work was beingundertaken in the exclusive mining concession of the Company under thefalse pretence of a local cooperative mine. 

Unfortunately, the failed mobilisation destroyed anadditional section of protected forest and area of mangroves.Tragically, a local Sangihe resident also died while improperlytransporting cyanide, a reagent used in gold processing. So far, atleast four Sangihe residents have died undertaking illegal gold miningon Sangihe Island. 

Company management estimate the failed mobilisationresulted in a net loss of approximately $3.5 million CAD to theillegal miners.

Enforcement Developments:

The Chief Prosecutor of North Sulawesi, Jacob HendrikPattipeilohy, visited Sangihe Island and toured the illegal miningsite with members of his enforcement team on May 18th.

All illegal mining stopped the day of the siteinspection, and there has been no further activity.

During the visit, the Chief Prosecutor designatedSangihe Island as a priority target for illegal mining enforcement. Hefurther reported that he had a moral and legal obligation to ensureenforcement as President Prabowo had given a direct order to crackdown on illegal mining.

The Chief Prosecutor of North Sulawesi, is the seniorlaw enforcement official responsible for overseeing criminalprosecutions, coordinating legal enforcement activities, andsupervising prosecutorial offices across the province, includingmatters related to corruption, illegal mining, public order, andprotection of state interests.

In public comments, Mr. Pattipeilohy specificallystated that a non-negotiable starting point was the complete end ofillegal mining, criticized the lack of police enforcement, andemphasised the importance of the integrity of law enforcementofficers.

The Chief Prosecutor also stated his intentions was topursue criminal charges from offenders, seek damages equal to the goldpreviously illegally mined and pursue additional financial penaltiesto fund land remediation. The Company intends to provide documentationand records that will assist in calculating the financial damages theyseek to recover.

The North Sulawesi High Prosecutor's Office appears to be working towards dismantling the network thatis facilitating the illegal mining on Sangihe Island.

Company management understands that four foreignnationals alleged to be key orchestrators of the illegal mining aredetained in prison and that a multi-agency investigation is underway.In addition, multiple excavators and an assortment of heavy equipmenthave been impounded and are in police custody.

TMS management and staff have tirelessly worked and iscontinuously liaising with multiple national enforcement agencies toend the illegal mining on Sangihe.

As enforcement and investigation of the illegal miningnetwork is ongoing, further planned actions and details cannot beshared. The Company anticipates additional arrests. 

Mr. Terrence Filbert, Chairman and CEO of Baru Gold, commented: “The persistence of illegal mining on Sangihe Island underscores thelocal community’s desire for the economic benefits that come frommining operations. There are few employment opportunities on Sangihe,and I can understand the appeal of even limited work. However, theeconomic benefits to locals are largely limited to low-paid, unsafeday labour.

“In contrast, our Company has paidmillions of dollars in local and national taxes, has a comprehensiveCommunity and Social Improvement Program, pays workers good wages withcomprehensive benefits, and has significant plans for infrastructuredevelopment and improvement on Sangihe Island. In addition, we hold avalid Environmental Permit and are legally required and responsiblefor environmental reclamation.”

Ending Illegal Mining Requires theStart of the Company’s Production Operations: 

Recently, Companymanagement met with the senior leadership of the Ministry of Energyand Mineral Resources (ESDM) and the Director of Special Crimes in theNational Police of Indonesia. The intention of the meeting was tocoordinate methods to end illegal mining. 

A key conclusion reached during the meeting was thatthe only enduring way to end illegal mining is for a legal miningoperation to begin, and the parties in attendance agreed to actexpeditiously to support this objective.

ABOUT SANGIHE GOLD PROJECT

The Sangihe Gold Project(“Sangihe”) is located on the Indonesian island of Sangihe, offthe northern coast of Sulawesi with a gold bearing area ofapproximately 25,000 ha. Sangihe has an existing National Instrument43-101 report suitable for mining planning and production schedulesfor an area within the 65-ha area targeted forinitial production. See the Company’s “Independent Technical Report on the Updated Mineral ResourceEstimates of the Binebase and Bawone Deposits, Sangihe Project, NorthSulawesi, Indonesia” (Mining Associates Pty Ltd, February1st, 2025). Only 10% of the gold bearing areahas been explored.

Readers are cautioned that mineralresources that are not mineral reserves do not have demonstratedeconomic viability. The Company intends to proceed to productionwithout the benefit of first establishing mineral reserves supportedby a feasibility study. The Company cautions readers that the anyproduction decision made by the Company will not be based on a NI43-101 feasibility study of mineral reserves that demonstrateseconomic and technical viability and as such, there may be involvedincreased uncertainty and various technological and economicrisks

The Company's 70-percent interest in theSangihe-mineral-tenement Contract of Work (“CoW”) is held throughPT. Tambang Mas Sangihe (“TMS”). The remaining 30-percent interestin TMS is held by other Indonesian corporations. The term of theSangihe CoW agreement is 30 years upon commencement of the productionphase of the project. Baru has met all the requirements of theIndonesian government and has been granted its environmentalpermit.

ABOUT BARU GOLD CORP.

Baru Gold Corporation is a dynamic junior golddeveloper with NI 43-101 gold resources in Indonesia, one of the topten gold producing countries in the world. Based in Indonesia andNorth America, Baru’s team boasts extensive experience in startingand operating small-scale gold assets.

On behalf of the Board of Directors

BARU GOLD CORP.

“Terry Filbert”                       

Terry Filbert

Chairman and Chief Executive Officer

info@barugold.com

604-684-2183

For investor contacts more information, pleasecontact:

Kevin Shum

Investor Relations

kevin@jeminicapital.com

647-725-3888 ext. 702

Neither TSXVenture Exchange nor its Regulation Services Provider (as that term isdefined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.

Certain statements in this News Release, which are nothistorical in nature, constitute “forward looking statements”within the meaning of that phrase under applicable Canadian securitieslaw. These statements include, but are not limited to, statements orinformation concerning future work programs, results and timing of anywork programs, the Company’s performance or events as of the datehereof. These statements reflect management’s current assumptionsand expectations and by their nature are subject to certain underlyingassumptions, known and unknown risks and uncertainties and otherfactors which may cause actual results, performance or events to bematerially different from those expressed or implied by such forwardlooking statements. Those risks include the interpretation of drillresults; the geology, grade and continuity of mineral deposits; thepossibility that future exploration, development or mining resultswill not be consistent with our expectations; commodity and currencyprice fluctuation; failure to obtain adequate financing; regulatory,recovery rates, refinery costs, and other relevant conversion factors,permitting and licensing risks; general market and mining explorationrisks and production and economic risks related to design andengineering, manufacturing, technological processes and testprocedures and the risk that the project’s output will not besalable at a price that will cover the project’s operating andmaintenance costs. Forward-looking statements should not be construedas investment advice. Readers should perform a detailed, independentinvestigation and analysis of the Company and are encouraged to seekindependent professional advice before making any investment decision.Accordingly, readers should not place undue reliance on anyforward-looking statement. Except as required by applicable securitieslaws, the Company disclaims any obligation to update or revise anyforward looking statements to reflect events or changes incircumstances that occur after the date hereof.

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