Pacific Imperial enters into an Option Agreement to acquire Fenton Property in British Columbia

(TheNewswire)

Vancouver, British Columbia –TheNewswire - January 27, 2026 – Pacific Imperial Mines Inc.(TSX.V: PPM) (“Pacific Imperial”or the “Company”) is pleased to announce that it has entered into anoption agreement dated January 26, 2026 (“Option Agreement”)with Hudbay Minerals Inc. (“Hudbay”) pursuant to which Hudbay hasgranted the Company the option (the “Option”) to acquirea 100% interest in the Fenton property in British Columbia (the“Property”).

The Property has road access and is situated 30 kilometres south ofHouston, British Columbia.The approximately 1,700-hectare Propertyis extensively covered byglacial till and is accessible by a network of logging roads.Past exploration on the Property includes geochemistry,airborne and ground geophysics and limited drilling. Mineralization onthe Property is anepithermal, high to low sulphidation, precious metal system hostedwithin felsic volcanic rocks of the Kasalka Formation. The age,mineralization and alteration characteristics of the Property aresimilar to those of Artemis’ Blackwater deposit, which lies to the southeast along a Southeast-Northwestregional trend which hosts a majority of the gold-silver prospects anddeposits in the region. The past producing Equity Silver mine is 40kilometres east of the Property.

The transactions contemplated by the Option Agreementare subject to the Company obtaining the approval of the TSX VentureExchange (the “Exchange”).

Under the Option Agreement, in order to exercise theOption, the Company must complete all of the following earn-inrequirements on or before the sixth anniversary of the date that theExchange provides approval for the transactions contemplated by theOption Agreement:

(a) incur an aggregate ofC$5,250,000 in exploration expenditures on the Property in stagedamounts for each anniversary ending on the sixth anniversarydate;

(b) make a one-time initial cashpayment to Hudbay in the amount of C$25,000 within 180 days followingthe date that the Company receives Exchange approval for the OptionAgreement; and

(c) make cash payments to Hudbayin the aggregate amount of C$2,175,000, or, alternatively, issue toHudbay an equivalent number of common shares of the Company (the“Shares”), in staged amounts for eachanniversary ending on the sixth anniversary date and based on theapplicable market price for such Shares, as further described below.

The Company may elect to accelerate any of the earn-inrequirements under the Option Agreement at its discretion.

Any Share issuance to Hudbay under the Option Agreementwill have an issue price per Share equal to the volume weightedaverage trading price of the Shares on the Exchange during the 10trading days ending on the third trading date preceding the date anyShares are issued under the Agreement, subject to a minimum issueprice of C$0.05 per Share.

If any Share issuance to Hudbay under the OptionAgreement would result in Hudbay holding greater than 9.99% of theShares, the Company will be required to settle the applicable paymentin cash instead of Shares. The Shares issuable under the OptionAgreement will be subject to a hold period ending four months and one day after the date ofissuance in accordance with applicable securities laws and thepolicies of the Exchange.

Upon the exercise of the Option, the Company willacquire a 100% interest in the Property and Hudbay will be granted a1.25% Net Smelter Returns royalty on the Property (the “Hudbay NSR”). Within 10days following the Company’s receipt of all required governmentalpermits to construct and operate a mine on the Property after exerciseof the Option, the Company will make a one-time cash payment ofC$5,000,000 to Hudbay, which payment will constitute an advancepayment of the Hudbay NSR. In addition, following the exercise of theOption and within 10 days after the Company publicly announces thecommencement of commercial production on the Property, the Companywill make an additional one-time cash payment of C$10,000,000 toHudbay, which payment will also constitute an advance payment of theHudbay NSR. The Company has also granted Hudbay a right of firstrefusal in respect of the sale of any future metals or ore productionfrom the Property.

In addition to any Hudbay NSR that may be granted onthe Property following the exercise of the Option by the Company, theProperty is currently subject to a 2% Net Smelter Returns royalty (the“Underlying NSR”) payable to a third party after the commencement ofcommercial production, which Underlying NSR would be assumed by theCompany if the Option is exercised. The Company will have the right topurchase 50% of the Underlying NSR (i.e., a 1% Net Smelter Returnsroyalty) for a cash payment of C$700,000.

The technical disclosure in this news release has beenreviewed and approved by Peter Holbek, MSc., P.Geo., a director of theCompany and a “qualified person” as defined in National Instrument43-101 – Standards ofDisclosure for Mineral Projects.

About Pacific Imperial Mines

Pacific Imperial is a mineral exploration company basedin Vancouver, Canada, engaged in the acquisition, exploration,evaluation and development of mineral properties in an acceptable riskenvironment. The Company’s current focus is on the Brownell propertyin Saskatchewan and the Babine property in B.C.

ON BEHALF OF THE BOARD OF DIRECTORS

“Chris McLeod”

Chris McLeod, Chairman & CEO

For further information, please contact:

Chris McLeod, Licurgo Albuquerque,President (604) 669 6332
Email: investor@pacificimperialmines.com

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.

Cautionary NoteRegarding Forward-Looking Statements

This press release containsforward-looking statements with respect to the Company. By theirnature, forward-looking statements are subject to a variety of factorsthat could cause actual results to differ materially from the resultssuggested by the forward-looking statements. In addition, theforward-looking statements require management to make assumptions andare subject to inherent risks and uncertainties. There is significantrisk that the forward-looking statements will not prove to beaccurate, that the management’s assumptions may not be correct andthat actual results may differ materially from such forward-lookingstatements. Accordingly, readers should not place undue reliance onthe forward-looking statements.

Generally forward-looking statementscan be identified by the use of terminology such as “anticipate”,“will”, “expect”, “may”, “continue”, “could”,“estimate”, “forecast”, “plan”, “potential” andsimilar expressions. Forward-looking statements contained in thispress release may include, but are not limited to, statementsregarding the receipt of approval of the Option Agreement by theExchange, the Company obtaining regulatory, government andproject-level approvals,, the Company completing the earn-inrequirements under the Option Agreement, the exercise of the Optionand the acquisition of a 100% interest in the Property, the timing andoccurrence of future royalty-related payments, and the timing,feasibility and achievement of commercial production on the Property,if any. These forward-looking statements are based on a number ofassumptions which may prove to be incorrect including, but not limitedto the ability of the Company to obtain all required regulatory,government, project-level and Exchange approvals, the ability to raisefunds through private or public equity financings to meet the earn-inrequirements; the ability of the Company to carry out its future planswith respect to the Property; the ability to obtain all permits andapprovals required to advance the Property beyond the explorationstage; risks inherent in exploration activities; the impact ofexploration competition; unexpected geological or hydrologicalconditions; changes in government regulations and policies, includingtrade laws and policies; failure to obtain necessary permits andapprovals from government authorities; volatility and sensitivity tomarket prices; the uncertainty that commercial production may ever beachieved; volatility and sensitivity to capital market fluctuations;environmental and safety risks including increased regulatory burdens;weather and other natural phenomena; and other exploration,development, operating, financial market and regulatory risks.

The forward-looking statementscontained in this press release are made as of the date hereof or thedates specifically referenced in this press release, where applicable.Except as required by law, the Company does not undertake anyobligation to update publicly or to revise any forward-lookingstatements that are contained or incorporated in this press release.All forward-looking statements contained in this press release areexpressly qualified by this cautionary statement.

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