Canyon Resources Limited is making this announcement to clarify its rights to tenements which adjoin the Minim-Martap Project (Project). Prior to the expiry of the term of the Makan and Ngaoundal research permits in July 2021, Canyon's subsidiary Camalco had applied for extensions to the term of those permits, whilst also applying for an exploitation license over the Minim Martap research permit. Camalco is still awaiting the grant of the exploitation licence but expects this is imminent as is the entry by Camalco and the Government of Cameroon into the Mining Convention for the Project.

On the 18th February 2022, La Société Nationale des Mines (Sonamines) and China Railway No. 5 Engineering Group Cooperation Limited_Cameroon (CREC 5) announced their entry into a Memorandum of Understanding (MOU) with respect to carrying out research work on the area of the Makan and Ngaoundal research permits. Camalco was not a party to the MOU, nor was it aware of Sonamines and CREC 5 negotiating an agreement with respect to the area of the research permits.

On 21st February 2022, the Minister for Mines, Industry and Technological Development (Minister) issued a decision to the effect that the actions of Sonamines and CREC 5 were null and void and that those actions were not in accordance with the Mining Code of Cameroon. The Company also announced that on 25th February 2022, Canyon's wholly owned Cameroon subsidiary company, Camalco Cameroon SA (Camalco), received confirmation from the Minister of the extension of the Makan and Ngaoundal research permits for an additional two years. Separately, Canyon has written to CREC 5 regarding its entry into the MOU, which action is a clear breach of the terms of the confidentiality agreement entered into between Canyon and CREC 5 on 11 August 2020.

Canyon had for a period in 2020 been sharing data with CREC 5 with respect to the Project.