HM Exploration Expands Pilley’s Island VMS District with Acquisition of Lewis Copper Tenure

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Pursuant to the Bonus Agreement, the Company shall also pay the Optionors an aggregate bonus payment(s) of C$5,000,000 in cash (the “Mineral Resource Bonus Payment”) in the event, subsequent to the exercise of the Option by the Company, a cumulative mineral reserve and mineral resource of not less than 2,000,000 AuEq ounces is established, updated or expanded on the Tenure, in compliance with NI 43-101, in any one or more mineral resource or mineral reserve category supported by a Feasibility Study and with a Net Present Value of not less than C$1,000,000,000. The Mineral Resource Bonus Payment will be payable by the Company to the Optionors, on a 50-50 basis, within thirty (30) business days of the date of filing of the Technical Report in support of such Feasibility Study or other public disclosure under applicable securities laws of the results of such Feasibility Study, whichever is earlier.

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References

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British Newfoundland Exploration Limited 1968: Diamond drilling data from Pilley’s Island, Newfoundland. British Newfoundland Exploration Limited Unpublished report [GSB# 002E/12/0168]
Bostock, H.H. 1988: Geology and petrochemistry of the Ordovician volcano-plutonic Roberts Arm Group, Notre Dame Bay, Newfoundland. Geological Survey of Canada Bulletin 369, 84 pages, with 1:50,000 colour map.
Consolidated Morrison Exploration Company 1979: The Bull Road showing, Pilley’s Island, Nfld. Consolidated Morrison Exploration Company unpublished report. [NDNR 2E/12]
Dunning, G.R., Kean, B.F., Thurlow, J.G. and Swinden, H.S. 1987: Geochronology of the Buchans, Roberts Arm and Victoria Lake Groups and Mansfield Cove Complex, Newfoundland. Canadian Journal of Earth Sciences, Volume 24, pages 1175-1184.
Epp, W.R. 1984: Brinco/Getty Joint Venture Dawes Pond Tenure Pilley’s Island 1984 diamond drilling report Blast Furnace Option, C.B. 2400, Lic. 2240, Newfoundland. Brinco Mining unpublished report. [NDNR 2E/524]
Espenshade, G.H., 1937. Geology and mineral deposits of the Pilley’s Island area, Newfoundland. Newfoundland Department of Natural Resources, Bulletin 6, pp. 1-56.
Grimley, P.H. 1968: Geological and other notes on Pilley’s Island. Brinex unpublished report. [NDNR 2E12/274]
Harris, A. 1976: Consolidated Morrison Exploration Company; The Bull Road showing, Pilley’s Island, Nfld. Consolidated Morrison Exploration Company unpublished report. [NDNR 2E/12/0388]
Horsburgh, J R 1967: The geology of the Pilleys Island prospect, Notre Dame Bay, Newfoundland. BSc thesis, Royal School Of Mines. 170 pages. [GSB# 002E/12/0265]
Hum, P. 1983: Report on the 1983 diamond drilling Pilley’s Island Blast Furnace Option and C.B. 2400, Licence 2240, Newfoundland. Brinco Mining Document No. G83005. [NDNR 2E/487]
Kerr, A. (1996) New perspectives on the stratigraphy, volcanology, and structure of the island-arc volcanic rocks in the Ordovician Roberts Arm Group, Notre Dame Bay. In Current Research, Newfoundland Department of Natural Resources, Geological Survey, Report 96-1, pages 283-310.
Paltser, Ulo, 1989. Geological and geochemical surveys in the Sunday Cove Tickle area, north central Newfoundland, C.B. 5746, Lic. 3303, NTS 2E/12, by James Wade Engineering for Epoch Capital Corp. [2E/12/0648]
Strong, D F 1974: Geology of the Pilleys Island area. In Ore deposits and their tectonic setting in the Central Mobile Belt of northeast Newfoundland. Geological Association of Canada-Mineralogical Association of Canada, Field Trip Manual, No. A-3 and B-3, pages 26-34. [GSB# NFLD/0782]
Thurlow, J.G 1996: Geology of a newly discovered cluster of blind massive sulfide deposits, Pilley’s Island, central Newfoundland. In Current Research, Newfoundland Department of Natural Resources, Geological Survey, Report 96-1, pages 181- 189.
Tuach, J. 1989: Diamond drilling at Pilley’s Island, Newfoundland January – February 1989. Licence 2278 and Fee Simple Grant Vol. 1, Fol. 28 (NTS 2E/12). Au Pell Resources Inc. unpublished report. [ NDNR 2E/656]
Walker, W B G 1960: Report on copper-pyrite of Pilleys Island, Newfoundland. British Newfoundland Exploration Limited Unpublished report [GSB# 002E/12/0242]

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National Instrument 43-101 Disclosure

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Nicholas Rodway, P.Geo, (Licence# 46541) (Permit to Practice# 100359) is CEO and Director of the Company, and a qualified person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Rodway has reviewed and approved the technical content in this release.

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About HM Exploration Corp.

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The Company is currently advancing the Devil’s Den Project, an exploration-stage property consisting of two contiguous claims totaling approximately 3,200 hectares on Vancouver Island, British Columbia. Exploration work completed in 2022 established four geochemical grids to identify possible buried mineralization, uncovering multiple high-grade occurrences including copper values up to 4.68% at surface (Devil’s Den NI 43-101, Nov 2022). Phase One exploration completed in 2025 included high-resolution UAV magnetic surveying and a lithogeochemical program, which identified new structural targets and zones of elevated copper, zinc, and nickel geochemistry. The project hosts multiple historical adits with high-grade surface occurrences that remain undrilled. HM believes a lack of adequate modern exploration has left significant discovery potential.

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In addition, the Company has recently expanded its portfolio with the acquisition of the Lewis Pilley’s Project in Newfoundland, a 41.25 km² contiguous land package hosting a cluster of volcanogenic massive sulfide (VMS) systems and the historic Pilley’s Island Mine (~450,000 tonnes of ore produced in the late 1800s). Historic drilling at the 3B-Zone returned significant intersections, including 16.77m of 1.84% Cu and 3.05m of 5.03% Zn with 1.02 g/t Au (Au Pell, 1989). The geological setting is directly analogous to the prolific Buchans camp, with multiple underexplored showings and strong potential for new discoveries.

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HM Exploration is committed to applying modern exploration techniques across its projects to unlock value in historically underexplored Canadian mining districts.

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On Behalf of the Board of Directors

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HM EXPLORATION CORP.

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Forward Looking Statements

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This news release includes certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” under applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, expect”, “target”, “plan”, “forecast”, “may”, “would”, “could”, “schedule” and similar words or expressions, identify forward-looking statements or information.