Mogotes Metals Inc. press release

Mogotes Metals Secures Option to Acquire Advanced Beskauga Copper-Gold-Silver Project

2026-02-27

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Mogotes Metals Secures Option to Acquire Advanced Beskauga Copper-Gold-Silver Project

Resource-Stage Porphyry Cu-Au-Ag System in Kazakhstan with Near-Surface Higher-Grade Core, District-Scale Exploration Upside and Established Infrastructure

Toronto, Ontario--(Newsfile Corp. - February 27, 2026) - Mogotes Metals Inc. (TSXV: MOG) (FSE: OY4) (OTCQB: MOGMF) ("Mogotes" or the "Company") is pleased to announce that it has entered into a definitive option agreement (the "Option Agreement") to acquire a 100% interest in the Beskauga copper-gold-silver porphyry project (the "Beskauga Project") located in Pavlodar Province, Republic of Kazakhstan.

Transaction and Project Highlights

Near-Surface, Potentially Low-Cost: The higher-grade Au-Cu-Ag core of the resource starts at approximately 40 metres below surface, beneath clay overburden, potentially amenable to open-pit mining (Figures 1& 2). Highlight drill intercepts within the MRE include (Table 2):BG21001: 957.0m at 0.58 g/t Au, 0.34% Cu, 1.92 g/t Ag from 44m

Incl. 203.0m at 1.12 g/t Au, 0.67% Cu, 3.70 g/t Ag from 48m

BG-033: 751.5m at 0.56 g/t Au, 0.25% Cu, 1.86 g/t Ag from 48.5m

BG-064: 616.2m at 0.46 g/t Au, 0.23% Cu, 1.14g/t Ag from 47.7m

FIGURE 1. Plan of Beskauga Main Gold Block Model and Drill Hole Collars, High Grade Core

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FIGURE 2. Cross Section SE Plunging Shoot - Gold Block Model and Cu-Au Drill Intercepts

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Significant Existing Resource: The Beskauga Main deposit has a 2022 National Instrument NI 43-101 ("NI 43-101") mineral resource estimate6 (MRE) within a conceptual pit shell at a gross metal value (GMV) cut-off of US$20/t (Table 1):Indicated: 111.2 Mt at 0.30% Cu, 0.49 g/t Au and 1.34 g/t Ag (containing 333.6 kt Cu, 1.8 Moz Au, 4.8 Moz Ag)

Inferred: 92.6 Mt at 0.24% Cu, 0.50 g/t Au and 1.14 g/t Ag (containing 222.2 kt Cu, 1.5 Moz Au, 3.4 Moz Ag)

This represents a robust starting-point resource with expansion potential.

Favourable Deal Terms: Deferred Consideration Under Option Agreement: Mogotes has the right to purchase a 100% interest in the Beskauga Project with an initial US$2.5 million payment (of which US$1.5 million in cash and US$1.0 million in cash or shares), followed by annual payments of US$1.0 million in 2027, 2028 and 2029, with each payment up to 50% paid in common shares of Mogotes, and a final payment of US$19.2 million on or before February 8, 2029, for total consideration of US$24.7 million (US$17.2M in cash and up to US$7.5M of value in common shares of Mogotes).

Considerable Resource Expansion Potential: Mogotes' initial analysis suggests the higher-grade mineralization within the MRE defines a large southeast-plunging shoot that remains open at depth (Figure 2). Post-MRE drilling totalling 18,657 metres in 28 holes has returned significant new mineralised intercepts extending outside of the 2022 resource, confirming the potential to grow the deposit with further drilling. Post-resource drilling highlights include (Table 3):

BG21007: 1,124.1m at 0.40 g/t Au, 0.25% Cu, 1.69 g/t Ag from 46m

Incl. 107.0m at 0.68 g/t Au, 0.52% Cu, 3.86 g/t Ag from 50m

BG22015: 955.0m at 0.29 g/t Au, 0.12% Cu, 0.97 g/t Ag from 45m

Incl. 17.0m at 1.05 g/t Au, 0.37% Cu, 1.70 g/t Ag from 337m

FIGURE 3. North-South Cross Section - Gold Block Model and Cu-Au Drill Intercepts

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District-Scale Exploration Upside: The Beskauga Project exploration licence covers a large tenure package hosting multiple untested porphyry-style magnetic targets with similar geophysical signatures to the Beskauga Main deposit. The Beskauga Central and Beskauga South prospects, among others, display magnetic depletion signatures consistent with epithermal alteration within the broader intrusive complex and have received limited to no modern exploration drilling, representing compelling satellite targets that could host additional mineralised systems.

Established Mining Jurisdiction: Kazakhstan is a globally significant mineral producer. The country is the world's largest uranium producer (~40% of global output1), a top-10 copper and gold producer, and holds the 3rd-largest chromite reserves globally2.

Kazakhstan's new Tax Code (effective January 2026) provides 100% capital deductions for exploration expenditures and a 0% mineral extraction tax for five years on new sites, reinforcing its investor-friendly credentials.3

The government targets US$150 billion in foreign direct investment by 2029, and recent legislative reforms (January 2025) further strengthen protections for foreign investors.4

Since 2020, Rio Tinto, Ivanhoe, Fortescue, BHP (through its Xplor generative exploration programme), Barrick Mining, First Quantum Minerals and Teck Resources have established exploration programmes in the country.5 The willingness of these globally significant operators to deploy capital into Kazakhstan validates both the geological prospectivity and the regulatory and operating environment of the jurisdiction.

Highly Developed Infrastructure: The Project is located approximately 370 km from the national capital, Astana, and 70 km south-west of the provincial capital, Pavlodar, within the heart of Kazakhstan's mining and heavy industry belt. Established rail and sealed national highway infrastructure lie within 20 km, a 1,100 kVA powerline traverses the project7, and the region hosts a skilled workforce and large-scale Cu-Au mining operations including the Bozshakol mine (1.1Bt at 0.34% Cu and 0.16 g/t Au)9 (Figures 4 & 5).

FIGURE 4. Beskauga Project and Infrastructure

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FIGURE 5. Overview of Porphyry projects in Kazakhstan9

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Favourable Metal Price Environment: Mogotes' analysis suggests that positive results from post-MRE drilling, combined with significantly improved metal prices since the 2022 resource estimate was prepared (the MRE used US$3.50/lb Cu and US$1,750/oz Au versus current prices well above those levels), offer considerable potential to update and improve the MRE.

Counter-Cyclical Exploration Calendar: The Beskauga Project exploration season is counter-cyclical to the exploration season for Mogotes' Filo Sur project in the Vicuña district, providing potential for year-round exploration and news flow for the Company.

Further Updates: Mogotes will provide further technical information on the Beskauga Project in coming days as the Company prepares for the 2026 exploration season.

CEO Allen Sabet commented:

"The Beskauga Project acquisition marks a transformational step for Mogotes Metals. We have secured the right to earn a 100% interest in a resource-stage copper-gold-silver project that combines scale, grade, near-surface mineralisation and district-scale exploration upside - all in a jurisdiction that is increasingly recognised as one of the most attractive in the world for responsible mineral exploration and development.

With over 200 million tonnes already delineated and a higher-grade core starting at just 40 metres below surface, Beskauga Project offers a compelling foundation for value creation. The deposit remains open at depth and along strike, with post-resource drilling confirming that the system extends well beyond the current resource boundary. Equally exciting, the broader exploration licence hosts multiple untested targets with geophysical signatures analogous to the main deposit - any one of which could represent a significant new discovery.

Kazakhstan's combination of favourable geology, established mining infrastructure, competitive operating costs, and a strengthened investor protection framework makes it an ideal environment for an exploration company of our size to create outsized value. We are already on the ground preparing for the 2026 field season and look forward to updating shareholders as we advance our integrated exploration and targeting program"

Strategic Rationale - A Complementary Portfolio

The addition of Beskauga Project is designed to complement the value of Mogotes' flagship Filo Sur project in the Vicuña district.

Filo Sur remains the Company's primary exploration asset and continues to receive priority funding and technical focus.

The Beskauga Project is being acquired under an option structure that preserves the Company's financial flexibility: all payments are discretionary and staged over three years, the initial cash outlay is modest relative to the value of the resource being secured, and a portion may be settled in shares rather than cash, protecting treasury for Filo Sur drilling programmes.

Critically, the two projects operate on opposite seasonal calendars - the Kazakh field season runs during the Northern Hemisphere summer while Filo Sur's high-altitude Andean season is concentrated in the Southern Hemisphere summer - allowing Mogotes' technical team and management bandwidth to be deployed year-round without competing for the same resources.

The Beskauga Project cost of drilling is expected to run approximately US$100 per metre drilled, allowing a small investment in exploration budget to go a long way.

For shareholders, this means continuous exploration newsflow, reduced single-asset concentration risk, and a second pathway to value creation through a resource-stage deposit with near-term development optionality, all achieved with relatively low cost of operation and option payments in the first years.

Summary of Option Agreement Terms

Pursuant to the Option Agreement, Mogotes, through its wholly-owned subsidiary Mogotes Metals Kazakhstan Inc. (the "Optionee"), has been granted the sole and exclusive option to acquire 100% of the participating interests in Dostyk LLP (the "Target Company"), a Kazakh limited liability partnership that holds the Beskauga Project exploration licence, from Copperbelt AG (the "Optionor"). Key terms are summarised below:

Option Consideration: Total payments of US$24.7 million comprising US$17.2 million in cash payments ("Cash Only Amounts") and US$7.5 million payable in cash or Mogotes common shares at the Optionee's election ("Eligible Amounts").

Payment Schedule:US$2.3 million within two business days of execution (US$1.3 million cash, US$1.0 million in cash or shares).

US$1.0 million on January 1, 2027 (US$500,000 cash, US$500,000 in cash or common shares)

US$1.0 million on January 1, 2028 (US$500,000 cash, US$500,000 in cash or common shares)

US$1.0 million on January 1, 2029 (US$500,000 cash, US$500,000 in cash or common shares)

US$19.2 million on or before February 8, 2029 (US$14.2 million cash, US$5.0 million in cash or common shares)

Share Pricing: The common shares issued in satisfaction of Eligible Amounts are priced at the greater of: (i) the 20-day VWAP ending on the last trading day prior to the election notice; and (ii) the market price on the execution date subject to a discounted market price of C$0.48 per share and TSXV approval.

Minimum Expenditure Commitments: The Optionee must incur or fund minimum exploration expenditures totalling US$860,000 over the Option Period.

Mining Licence: The Optionee will prepare a Mining Licence application for submission by January 1, 2027.

Discretionary Payments: All option payments and expenditure commitments are at the sole discretion of the Optionee. The Optionee may accelerate payments at any time without penalty.

Location and Previous Exploration Summary

The Beskauga Project is located in Pavlodar Province in the north-east of the Republic of Kazakhstan, approximately 370 km from the national capital, Astana. The Pavlodar provincial economy is largely driven by mining and heavy industry, including large-scale open-pit and underground mining. The Beskauga Project is located 70 km south-west of the provincial capital and is well serviced by established infrastructure, with the project located within 20 km of rail and sealed national highway. A 1,150 kVA powerline also traverses the project7 (Figure 4).

Kazakhstan sits within the Central Asian Orogenic Belt (CAOB), one of the world's most richly mineralised metallogenic domains. The CAOB hosts numerous porphyry copper-gold deposits8. The Beskauga Project is situated in the same geological terrane as the Bozshakol and Aktogai porphyry copper-gold operations, among others, underscoring the district's prospectivity.

The Beskauga Project area is covered by up to 40 m of post-mineral clay overburden. As a result, pre-discovery exploration was driven by project-scale IP geophysics and magnetics, wide-spaced grid-based KGK drilling (similar to "wet" reverse circulation drilling) through cover to collect basement geochemistry and geology samples. Exploration drilling of anomalies generated by this process led to the discovery of the Beskauga Project deposit in 2007. For a detailed exploration and company ownership history of the project please see the NI 43-101 report6.

Mogotes is undertaking an integrated reprocessing and targeting programme of the Beskauga Project ahead of the Kazakh field season and will provide a technical update on the Project in the coming weeks. The Company has commenced engaging a local team and service providers to advance the 2026 programme at the Beskauga Project.

TABLE 1. Mineral Resource Estimate for the Beskauga Main Project6

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TABLE 2. Beskauga Select Intercepts From Drilling, from Drill Holes used in Mineral Resource Estimate6

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TABLE 3. Beskauga Select Intercepts From Drilling Completed Post Mineral Resource Estimate

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References

1 World Nuclear Association, "Uranium and Nuclear Power in Kazakhstan", world-nuclear.org (accessed February 2026).

2 MINEX Kazakhstan 2024 Forum, "Shifting Dynamics in Kazakhstan's Mining and Metals Industry", 2024.minexkazakhstan.com.

3 Moore Kazakhstan, "New Tax Code: Key Changes", kazakhstan.moore-global.com; Aequitas Law Firm, "New Tax Code - What Should Subsoil Users Expect?", aequitas.kz. New Tax Code of the Republic of Kazakhstan signed July 18, 2025, effective January 1, 2026.

4 Concept of Investment Policy of the Republic of Kazakhstan 2024-2029, approved October 18, 2024. UNCTAD Investment Policy Monitor, investmentpolicy.unctad.org.

5 https://primeminister.kz/en/news/large-international-companies-investments-in-geological-exploration-amounted-to-about-41-billion-tenge-29409

6 Underwood, D., and Dumala, M., 2022, Beskauga Copper-Gold Project, Pavlodar Province, Republic of Kazakhstan (NI 43-101 Technical Report, dated 20 Feb 2022). Arras Minerals Corporation and associated press release (https://www.arrasminerals.com/arras-minerals-files-ni43-101-resource-of-1-75-million-ounces-of-gold-333-6-thousand-tonnes-of-copper-in-the-indicated-category-and-1-49-million-ounces-of-gold-222-2-thousand-tonnes-of-copper-i)

7 Mogotes Metals internal project review, 2025-2026. Kazakhstan Electricity Grid Operating Company (KEGOC) map of electrical networks, 2026 (https://www.kegoc.kz/electric-power/natsionalnaya-energosistema/eng%20Карта%20схема%20ЕЭС%20Казахстана-2026%20г.%20cdr.pdf).

8 Porphyry Copper Assessment of the Central Asian Orogenic Belt, U.S. Geological Survey Scientific Investigations Report 2010-5090-X (https://pubs.usgs.gov/sir/2010/5090/x/pdf/sir2010-5090-X.pdf).

9 KAZ Minerals Supplementary Information - Mineral Reserves and Mineral Resources, Year ended 31 December 2021 (https://www.kazminerals.com/media/22382/mineral-reserves-and-resources-estimation-methods-2021.pdf); Porphyry Copper Assessment of the Central Asian Orogenic Belt, U.S. Geological Survey Scientific Investigations Report 2010-5090-X (https://pubs.usgs.gov/sir/2010/5090/x/pdf/sir2010-5090-X.pdf).

About Mogotes Metals Inc.

Mogotes Metals Inc. is a mineral exploration company focused on copper, gold and silver exploration and development. The Company's portfolio includes the Filo Sur project, which adjoins the large Filo del Sol copper-gold-silver discovery in the prospective Vicuña district of Argentina and Chile, and the Beskauga Project (copper-gold-silver) in the Pavlodar Province of Kazakhstan.

For further information, please contact:

Mogotes Metals Inc.

Allen Sabet, President and Chief Executive Officer

Phone: (647) 846-3313

Email: info@mogotesmetals.com

Follow Us

Twitter: https://x.com/mogotesmetals

Additional Information

The information contained in this news release was accurate at the time of dissemination but may be superseded by subsequent news release(s). The Company is under no obligation, nor does it intend to update or revise the forward-looking information, whether as a result of new information, future events or otherwise.

Qualified Person

The scientific and technical disclosure for the Beskauga Project included in this news release has been reviewed and approved by Stephen Nano, who is a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Nano is a Director and Technical Advisor of the Company and is therefore not considered independent of the Company for the purposes of NI 43-101.

Cautionary Note Regarding Historical Estimates

The mineral resource estimate referenced in this news release was originally prepared by David Underwood BSc (Hons) Registered Professional Natural Scientist, an independent Qualified Person as defined by NI 43-101, and disclosed in a technical report titled "Beskauga Copper-Gold Project, Pavlodar Province, Republic of Kazakhstan, Amended & Restated NI43 101 Technical Report" with an effective date of 20 February 2022, which is available under Arras Minerals Corp. SEDAR+ profile at www.sedarplus.ca.

Mineral resources referenced in this news release are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014). Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The mineral resource estimate for the Beskauga deposit referenced in this news release is treated as a historical estimate for the purposes of NI 43-101. The estimate was prepared by David Underwood, B.Sc. (Hons) (Osino Resources) and Matthew Dumala, B.Sc. (Archer, Cathro & Associates) with an effective date of February 20, 2022, and key assumptions including top cut values for copper, gold and silver of 3.00%, 10.0 g/t and 25.0 g/t respectively, a gross metal value cut-off of $20/t, base metal prices of $3.50/lb copper, $22.00/oz silver and $1,750/oz gold, and recovery factors of 85.0% for copper, 74.5% for gold, and 50.0% for silver. The estimate was disclosed in Underwood, D., and Dumala, M., 2022, Beskauga Copper-Gold Project, Pavlodar Province, Republic of Kazakhstan (NI 43-101 Technical Report, effective 20 Feb 2022). Arras Minerals Corp.

The Company considers the historical estimate to be relevant to investors as it provides an indication of the mineralization potential of the Beskauga property. However, the Company's Qualified Person, Mr. Nano, has not completed sufficient work to verify or classify the historical estimate as a current mineral resource or mineral reserve in accordance with NI 43-101 and CIM Definition Standards. The Company is not treating the historical estimate as a current mineral resource or mineral reserve, and the historical estimate should not be relied upon.