Axo Metals Receives Environmental Impact Statement Approval for San Antonio Gold Project

• SEMARNAT approved the Environmental Impact Statement (MIA) for the San Antonio gold project
• The approval covers all existing infrastructure and current mineral resources across every deposit at San Antonio
• Core facilities, including the past-producing Luz del Cobre open pit, stockpiles, waste dumps, a carbon-in-column processing plant and camp, are fully permitted with no further soil-use approvals required
• A separate Change of Use of Soils authorisation, required before mining begins at the Sapuchi, Golfo de Oro and California deposits, was submitted earlier this year and is expected before year end
• San Antonio holds indicated resources of 576,000 ounces of gold and 1.37 million ounces of silver, and inferred resources of 544,000 ounces of gold and 1.76 million ounces of silver

Axo Metals (TSXV: AXO) is a Canada-based mineral exploration and development company operating in Mexico. The company holds two projects: San Antonio, an advanced-stage gold project in Sonora state, and La Huerta, a copper discovery in Jalisco state. At La Huerta, surface sampling and initial drilling have identified high-grade copper mineralisation, and the company is working to define near-surface mineralisation, expand it at depth, and test new targets across the district.

SEMARNAT Approves Environmental Impact Statement for San Antonio

SEMARNAT is Mexico's federal environmental regulator responsible for reviewing the environmental impact of proposed mining activity before granting authorisation to build and operate a mine. The approval of the Environmental Impact Statement, known locally as the Manifesto de Impacto Ambiental (MIA), is the primary authorisation required for construction and operation of the San Antonio mine.

President and CEO Jonathan Egilo said:

"The receipt of the MIA is the definitive green light from SEMARNAT that we have been working towards. We are excited and committed to leveraging our existing infrastructure at San Antonio and returning the project to production. Today's announcement marks a significant milestone. Axo is committed to responsible resource development, and we will continue to work to create long-term value for the people of Sonora and our shareholders."

The MIA applies to all existing infrastructure and current mineral resources at San Antonio, spanning oxide, transition and sulphide material across the project's deposits.

Existing Infrastructure Fully Permitted at San Antonio

The MIA approval extends to infrastructure already built at San Antonio. This includes the past-producing Luz del Cobre open pit, existing stockpiles and waste dumps, a carbon-in-column processing facility, and the site camp. These facilities are now fully permitted and require no further soil-use authorisation.

San Antonio's resource base includes indicated resources of 576,000 ounces of gold and 1.37 million ounces of silver, grading 1.20 g/t gold and 2.9 g/t silver, along with inferred resources of 544,000 ounces of gold and 1.76 million ounces of silver, grading 1.02 g/t gold and 3.3 g/t silver, across oxide, transition and sulphide deposit types.

Mining at the Sapuchi, Golfo de Oro and California deposits requires a separate authorisation, addressed below, before it can proceed.

Change of Use of Soils Authorisation Expected Before Year End

Before mining can begin at the Sapuchi, Golfo de Oro and California deposits, Axo Metals requires a Change of Use of Soils authorisation, known as the CUS. This is a distinct process from the MIA and applies to land at these specific deposits.

The CUS application was submitted earlier this year, and the company describes it as a routine ancillary step. Axo Metals anticipates approval before year end.

Once granted, the CUS would represent the final identified regulatory step for mining to proceed at the Sapuchi, Golfo de Oro and California deposits, in addition to the infrastructure already permitted under the MIA at Luz del Cobre and other existing facilities.

Milestones and Next Steps

The next regulatory milestone for Axo Metals is the Change of Use of Soils authorisation for the Sapuchi, Golfo de Oro and California deposits, expected before year end. Alongside developments at San Antonio, the company continues to advance exploration at its La Huerta copper project in Jalisco state.

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