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].

Core Viewpoint - Pasofino Gold Limited has successfully closed a non-brokered private placement, raising gross proceeds of C$12.0 million to support the development of the Dugbe Gold Project and for general working capital purposes [1][11]. Group 1: Offering Details - The private placement consisted of units priced at C$0.50 each, totaling 24,000,000 common shares and 24,000,000 warrants, with each warrant allowing the purchase of one common share at C$0.75 for 24 months [1][2]. - The offering closed on October 21, 2025, and all securities issued are subject to a 4-month hold period expiring on February 22, 2026 [1][5]. Group 2: Finder's Fees and Insider Participation - The company paid a total of C$61,405 in cash finder's fees and issued 52,570 warrants exercisable at C$0.50 and 63,040 warrants exercisable at C$0.75 [5][8]. - Insiders subscribed for 54.2% of the offering, amounting to gross proceeds of C$6,506,500, with no finder fees or warrants paid on these subscriptions [10][9]. Group 3: Use of Proceeds - The net proceeds from the offering will be utilized for updating the feasibility study of the Dugbe Gold Project, repaying amounts owed to the Government of Liberia, and for general working capital [11][12]. Group 4: 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 at an average grade of 1.37 g/t Au [13][14]. - The project is supported by a mineral development agreement with the Government of Liberia, which includes a 3% royalty rate on gold production and a 25% income tax rate [17].