Element79 Provides Corporate Update

(TheNewswire)

V ANCOUVER, BC / T heNewswire / May 7, 2025 – Element79 Gold Corp.(CSE: ELEM) (OTC: ELMGF) (FSE: 7YS) ("Element79", or the"Company”) provides the following updates on multiple corporateinitiatives underway:

Update on Sale of Nevada Assets to1472886 BC Ltd.

As first outlined in the Company’s news release onSeptember 9, 2024, and updated on October 10, 2024, the Company hasmade multiple attempts to push this transaction towards completion,with the counterparty being unable to meet terms required to completea successful closing.  As the original timelines of the LOI haveexpired, the Company holds that the contract with 1472886 BC Ltd. isnull and void and has restarted conversations with alternate partiesthat have expressed interest in the purchase of the Stargo, ElderCreek and North Mill Creek projects.

Update on Financing: Crescita CapitalNote Draw

In the month of April 2025, Crescita issued CAD$100,000 of capital to the Company, for use in advancing communityefforts for the Lucero project, investor relations activities andgeneral corporate purposes.  Similar to the first draw from the new2025 Crescita Draw Down Facility as announced on February 28, 2025,the convertible note drawn will carry a simple interest rate of 15%per annum until repaid or converted into shares of the Company.

The general use of funds for any financing efforts thatthe company engages in in the immediate term, including the strategicsale of corporate assets, will be sequentially to pay mineral leasesfor its projects in Peru and Nevada; complete its OTCQB uplisting;general corporate operating expenses and address key accountspayable.

Update on Chachas community progress,strategic review of Lucero

Representatives of Element79 GoldCorp and its community relations team, GAE Peru, attended a series ofmeetings in both Chachas, Arequipa and Lima between the April21 st and May 3rd, yieldingthe following report on continued progress towards forging long-termsurface rights access and therefore access to its past-producingLucero mine for exploration and mineral exploitation activities.  Asummary of GAE’s report for April 2024 is provided below.

Ongoing Challenges with InformalMining (REINFO)

The report highlights the presence of 102 activeinformal miners registered under the REINFO framework are operating inthe general Chachas region, with an estimated 350 more operatingaround Chachas without formal status. Many of these actors arereported to have been extracting ore illegally for around, if notover, a decade. While the federal REINFO was established as a route toFormalization, it has often been used in practice to legitimizeillegal mining operations. The main local artisanal miningassociation, Asociación Lomas Doradas, comprising 65 such miners, hasshown limited interest in engaging with Element79 Gold Corp, althougha small group within their Tonalita concession may pursueFormalization.

In addition to the above, there is a separatecontingent of REINFO miners willing to enter into an exploitationagreement with Element79 Gold Corp. Discussions are ongoing, with akey meeting roughly scheduled during the first half of May 2025. Thesituation remains complex, as community members and REINFOs have takenmeasures such as blocking access routes with guarded checkpoints andreportedly seek to establish their own mineral processing plant oncommunal land.

Strengthening Community Relations

Since September 2024, GAE Peru has actively engagedwith residents across six annexes of Chachas through meetings and twolarge-scale general assemblies. For its consistent presence andattendance at community meetings, Element79 Gold is increasinglyrecognized in the region, maintaining open lines of communication viaits local Social Management Office. Support from the current communalleadership, particularly President Melitón, has been instrumental infostering constructive dialogue. A critical extraneous assembly todiscuss long-term agreements is scheduled for July 2025.

Focus on Value Creation and Negotiation

The Company remains committed to a comprehensivevalue-generation plan that includes exploration, exploitation, andoperation of a mineral processing facility. Local communities haveexpressed high expectations for future economic benefits, particularlyin the form of irrigation and agricultural development support, asoutlined by the Chachas Irrigation Commission and local farmers fromChachas and Nahuira.

Path Forward Through Dialogue

During the most recent communal assembly in April andsubsequent smaller assembly and group meetings, stakeholders withinthe Chachas region have continued dialogue with Element79 Gold Corp,bypassing the uncooperative leadership of the Lomas DoradasAssociation. A formal dialogue session with the communal board (JJDD)and local administrative leaders (JAL) is scheduled for May 15,2025.

Government Oversight and Legal Pathways

The GREM (Regional Mining Office) of Arequipa hasacknowledged the limited timeframe for formalizing current REINFOminers in Chachas. Beginning in June 2025, GAE Peru, on behalf ofElement79 Gold Corp, will request GREM's oversight to enforce legalregulations under the new Small-Scale and Artisanal Mining Law (MAPE),enabling coordinated action against ongoing illegal mining.

Commitment to Responsible Development

Element79 Gold reaffirms its commitment to responsiblemining and community development, emphasizing the importance ofdialogue and mutual respect as it advances the Lucero Project towardfuture production.

James Tworek, Element79 Gold Corp CEO and Directorstated: “The potential of Lucero remains a key motivation and drivingforce behind the Company’s decision making, and we remain cautiouslyoptimistic that the upcoming June 30 deadline for Formalizationbetween REINFOs and mineral right holders will continue to bring uscloser to the goal of forging long term contracts with the localminers and greater Chachas community.  While we progress in communityrelations month by month, we’re living the reality that relationshipbuilding and trust creation are exercises in communication,persistence, patience and mutual understanding.

In the interim,recent team due diligence trips to review additional assets in Peruand Nevada, along with strategy sessions with advisors and keyinvestors in the Company have opened our eyes to a number of possiblealternate growth strategies.  We look forward to reporting on theseinitiatives in the coming months.”

For further details on this announcement and theCompany’s projects, please visit www.element79.gold

About Element79 Gold Corp.

Element79 Gold Corp. is a mining company focused onexploring and developing its past-producing, high-grade gold andsilver project, Lucero, located in Chachas, Arequipa, Peru. TheCompany is committed to advancing responsible mining practices andmaintaining strong relationships with local communities to supportsustainable development.

The Company also holds several exploration projectsalong Nevada’s Battle Mountain trend, a region renowned for prolificgold production, and these assets are under contract for sale in thefirst half of 2025.  Additionally, Element79 has transferred its DaleProperty in Ontario to its subsidiary, Synergy Metals Corp., as partof a Plan of Arrangement spin-out process.

Contact Information

For corporatematters, please contact:

James C. Tworek, Chief Executive Officer

E-mail: jt@element79.gold

For investorrelations inquiries, please contact:

Investor Relations Department

Phone: +1.403.850.8050

E-mail: investors@element79.gold

Cautionary Note Regarding ForwardLooking Statements

This press contains "forward?lookinginformation" and "forward-looking statements" underapplicable securities laws (collectively, "forward?lookingstatements"). These statements relate to future events or theCompany's future performance, business prospects or opportunities thatare based on forecasts of future results, estimates of amounts not yetdeterminable and assumptions of management made consideringmanagement's experience and perception of historical trends, currentconditions and expected future developments. Forward-lookingstatements include, but are not limited to, statements with respectto: the timing and completion of the arrangement and the timing andcompletion of the amalgamation. Assumptions may prove to be incorrectand actual results may differ materially from those anticipated.Consequently, forward-looking statements cannot be guaranteed. Assuch, investors are cautioned not to place undue reliance uponforward-looking statements as there can be no assurance that theplans, assumptions or expectations upon which they are placed willoccur. All statements other than statements of historical fact may beforward?looking statements. Any statements that express or involvediscussions with respect to predictions, expectations, beliefs, plans,projections, objectives or future events or performance (often, butnot always, using words or phrases such as "seek","anticipate", "plan", "continue","estimate", "expect", "may","will", "project", "predict","forecast", "potential", "target","intend", "could", "might","should", "believe" and similar expressions) arenot statements of historical fact and may be "forward?lookingstatements".

Neither the Canadian SecuritiesExchange nor the Market Regulator (as that term is defined in thepolicies of the Canadian Securities Exchange) accepts responsibilityfor the adequacy or accuracy of this release.

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