Pasofino Gold Announces Update with Respect to Mineral Development Agreement

Core Viewpoint - Pasofino Gold Limited has received a notice from the Government of Liberia regarding alleged failures to meet obligations under the Mineral Development Agreement (MDA), prompting the company to seek a meeting to address these concerns and remedy the situation [1][2]. Group 1: Government Notice and Company Response - The Government of Liberia claims that Pasofino has not fulfilled several obligations under the MDA, including timely payments and completion of required activities, particularly during the COVID-19 pandemic [1]. - The company has requested a meeting with the Government of Liberia for the week of January 18, 2026, to discuss the issues raised in the notice and to identify steps to remedy the alleged defaults [2]. - Pasofino has a 30-day period to contest the allegations or request a hearing, and a 60-day period to cure the defaults before the government can terminate the MDA [3]. Group 2: Commitment to Resolution - Pasofino is committed to resolving the issues raised in the notice through consultation with the Liberian Government and following the methods for cure outlined in the MDA [4]. - The MDA includes provisions for consultation and arbitration to resolve disputes if the company and the government cannot agree on defaults or remedies [4]. Group 3: Dugbe Gold Project Overview - The Dugbe Gold Project spans 1,410 km² in southern Liberia and contains two identified deposits, Dugbe F and Tuzon, with a combined Mineral Resource Estimate of 3.3 million ounces (Moz) of gold at an average grade of 1.37 g/t Au [5][6]. - Following a Definitive Feasibility Study completed in June 2022, a Mineral Reserve Estimate was declared for the project, which is based on open-pit mining over a 14-year life of mine [7]. - The project has additional gold prospects, including the Bukon Jedeh area and the DSZ target, where surface gold mineralization has been discovered [8]. Group 4: MDA Financial Terms - The MDA signed in 2019 includes a 3% royalty rate on gold production, a 25% income tax rate, a 50% reduction in fuel duty, and a 10% free carried interest for the Government of Liberia [9]. Group 5: Project Financing and Feasibility Study Update - Pasofino is currently updating the feasibility study for the Dugbe Gold Project to support project financing efforts aimed at commencing construction in 2026 [10]. - The company has engaged various consultants for the feasibility study update and is conducting an infill drilling program of approximately 11,000 meters [10].