American Pacific Mining Corp. provided an update on the ongoing activities at its Palmer Project near Haines, Alaska, US. Palmer is an advanced-stage, high-grade volcanogenic massive sulphide-sulphate deposit ("VMS") located in the Porcupine Mining District of the Haines Borough, Alaska. Constantine North Inc. ("Constantine"), a subsidiary of American Pacific, is the operator for the Project and the USD 25.5 million 2023 program is funded by joint venture partner Dowa Metals & Mining Co. Ltd. ("Dowa"). Plate 1: (left) Native copper in drillhole CMR23-152 at 177.6 m downhole (Southwall Zone 1). Plate 2: (right) Massive sphalerite from CMR23-153 at 156.9 m downhole (Southwall Zone 1). Highlights: 178 meters ("m") of the planned 9,000 m resource defition program has been drilled representing 46% of the planned 2023 program. 1,022 m of the planned 2,550 m geotechnical drill program has been drilled, representing 40% of the planned program. Hydrogeologic testing and monitoring well installations are ongoing to determine the hydrogeological characteristics and rock mechanics of the hanging wall and footwall. The first 378 samples for assays were recently shipped to the laboratory with results expected during the third quarter of 2023. Progm GoGoals and Drill Program Overview: One of the 2023 program goals is to build the foundation of people, infrastructure, and resources needed to operate through the advanced exploration and evaluation stages and complete feasibility-level engineering studies on the Project in the coming years. The 2023 diamond drill program is targeting high-priority areas in two unique mineralized lenses, which make up the Southwall Zone of the Palmer deposit. The knowledge gained from this program will provide insights to support feasibility-level studies of the Palmer deposit and future discovery focused drilling throughout the mineralized
district. Two diamond drill rigs dedicated to the infill drill program have collared 14 holes, with good productivity and 46% of the program now complete. The third diamond drill rig, focused on hydro-geotechnical drilling in the immediate deposit area, has collared five holes, to date. The 2023 drilling builds upon the Company's confidence in the current geologic modeling of the VMS lenses within the Southwall Zone, while gaining valuable geotechnical insight into the surrounding wall rock. Logging of drill core from Southwall Zone 1 indicates massive and semi-massive sulphide mineralization up to 43 m in drilled thickness and defined by a sphalerite-rich eastern limb, a chalcopyrite-rich core and increasing pyrrhotite-
pyrite mineralization through the centre of the lens. Drilling will continue to test the western portion of Zone 1 and the extent of the mineralization. Directional drilling of Southwall Zone 2-3 has provided insight into the structural complexity of the deposit at depth, allowing for precision targeting of desired intersections. Two distinct sphalerite-chalcopyrite-pyrrhotite-barite massive sulphide horizons have been visually identified through core logging at approximately 39 m in drilled thickness. In addition, ongoing analysis of historical geochemical data continues to highlight areas with high-grade potential near the Southwall Zone. Team and Safety The Company is building the team and facilities to fully evaluate the Palmer Project over the next several years. This year's field program is being executed with 41 direct employees, 11 are year-round and 30 are full-time until late October. The Company has built a high-performing team, adding a Human Resources Manager, Financial Controller, Health and Safety Superintendent, Site Manager, Exploration Manager and several technical experts. The Project's ongoing hazard awareness and risk reduction focus will continually aim for safety performance. The Company's safety record has remained excellent, with zero reportable lost time injuries to date. Environmental Programs An important part of Palmer's 2023 programs is broadening the understanding of environmental conditions in and around the Project area. The environmental team has been planning baseline studies to properly evaluate new areas for potential infrastructure. These studies include wetland mapping, noise monitoring, measuring ambient light, and fish and wildlife surveys. A continued priority for the environmental team is ensuring Palmer's environmental studies and monitoring provide community confidence in the Project above and beyond regulatory compliance. Geotechnical Studies The 2023 geotechnical program will be focused on data acquisition to evaluate potential locations for Project infrastructure. The company has been working with contractors to be field ready marking the beginning of a multi-year effort to evaluate infrastructure locations and design. Overall, the focus of these programs will be to identify the best location possible for site infrastructure from multiple perspectives, allowing the Company to design the best project for the region.