American Pacific Mining Corp. provided an update on the work programs completed in 2022 at the Palmer Project (“Palmer” or the “Project”), an advanced-stage, high-grade volcanogenic massive sulphide-sulphate (“VMS”) project located within the Porcupine Mining District of the Haines Borough, Alaska, in which the Company recently acquired indirect ownership of a minority interest. The 2022, multi-purpose, US$10.4 million work program at the Palmer Project, focused on preparations for initiating an extensive underground exploration program in 2023.

The major elements of the 2022 program included: An engineering review of the underground portal access road and 60% of the access road construction was completed; Lease, permitting and site preparation for a 60-person all-season camp slated for occupancy in June 2023 to support the planned exploration activity; A seven-hole exploration drilling program totaling 3,546 metres to test the offset of the South Wall deposit and the Terminus and Jasper Mountain targets; Environmental and permitting, including on-going environmental baseline studies and compliance work; and Engineering studies including a metallurgical sampling program completed with sample compilation in progress, and a production site evaluation that provides an alternate production portal, mill and tailing management analysis. The Palmer Project is a promising advanced-stage high-grade volcanogenic massive sulphide-sulphate project located within the Porcupine Mining District of the Haines Borough, Alaska. The Project is operated in a joint venture partnership between American Pacific Mining, through its wholly owned subsidiary, Constantine North Inc. as the manager (operator), with 41% ownership and Dowa Metals & Mining Co.

Ltd. (Dowa), with 59% ownership. As of December 31, 2022, USD 68.7 million has been invested in exploration work and environmental programs to responsibly advance the Project. Palmer, which hosts a National Instrument 43-101 compliant mineral resource of 4.68 million tonnes of 10.2% zinc equivalent (3.9% copper equivalent) in the indicated category and 9.59 million tonnes of 8.9% zinc equivalent (3.4%) copper equivalent in the inferred category.

A Preliminary Economic Assessment was completed in June 2019, which presents a low capex, low operating cost and a post-tax NPV of USD 266 million.