Argyle Resources Supporting Government of Canada Emphasis on Critical Mineral Development

Rhea-AI Summary

Argyle Resources (OTCQB: ARLYF) has announced its support for the Canadian government's increased focus on critical mineral development as part of enhanced NATO spending commitments. Prime Minister Mark Carney confirmed Canada's plans to meet a new defence spending target of 5% of GDP, with significant investments planned in critical mineral supply chains and infrastructure.

The company's Clay Howells rare earth elements (REE) project in Ontario aligns with this national initiative. Additionally, Argyle has terminated its option agreement for the Frenchvale Flake Graphite Property in Nova Scotia to focus resources on its silica projects and the Clay Howells REE project.

Positive

• Strategic alignment with government's critical minerals development initiative
• Clay Howells REE project positioned to benefit from increased national infrastructure investment
• Potential to participate in international collaboration with EU, UK, and NATO allies

Negative

• Termination of Frenchvale Flake Graphite Property option agreement reduces project portfolio diversity
• Implementation timeline and specific benefits to Argyle remain uncertain

Calgary, Alberta--(Newsfile Corp. - June 26, 2025) - Argyle Resources Corp. (CSE: ARGL) (OTCQB: ARLYF) (FSE: ME0) ("Argyle" or the "Company") is pleased to express its full support for the Government of Canada's growing emphasis on critical mineral development as a key pillar of its enhanced NATO spending commitments.

In the lead-up to the NATO leaders' summit in the Netherlands, Prime Minister Mark Carney confirmed Canada's plans to meet a new collective defence spending target of 5% of GDP. This expanded commitment, aimed at strengthening security infrastructure across NATO allies, will in part be met through major investments in Canada's critical mineral supply chain and supporting infrastructure. These investments are intended not only to bolster national security, but also to support global allies with the strategic resources necessary for modern defence systems.

Key priorities contributing to this target include:

• Strategic Critical Mineral Development: Canada will leverage its high-end deposits of critical minerals such as; cobalt, graphite, and nickel-that are essential for advanced military equipment including submarines, missiles, and jet engines.

• Infrastructure and Export Capabilities: A significant portion of the 5% NATO goal will fund national infrastructure such as ports, railways, and logistical corridors, ensuring efficient access to and distribution of mined resources.

• International Collaboration: Canada will work in partnership with the European Union, the United Kingdom, and other allied nations to develop and supply these essential materials, creating mutual economic and security benefits.

Commenting on the initiative, Prime Minister Carney referred to the importance of building infrastructure and supply chains that will make Canada a strategic hub for the critical minerals that secure our future, stating:

"Some of the spending for that counts towards that five per cent. In fact, a lot of it will count toward that five per cent because of infrastructure spending - it's ports and railroads and other ways to get these minerals out - So that's something that benefits the Canadian economy but is also part of our new NATO responsibilities."¹

Argyle's Clay Howells rare earth elements (REE) project in Ontario is directly aligned with this national and global vision. The Company believes the Clay Howells property is uniquely positioned to contribute to Canada's secure and sustainable supply of defence-critical materials, while also supporting broader economic development goals within Ontario.

Figure 1: Clay Howells REE Property Location Map

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10451/256866_04c842a7b42b59fe_001full.jpg

The Company also announces that it has terminated its option to acquire 100% of the interest in the Frenchvale Flake Graphite Property, situated in Nova Scotia pursuant to the option agreement between Mt. Cameron Minerals Incorporated and the Company dated June 5, 2023, as amended on January 31, 2024 (the "Frenchvale Option Agreement"). The Company has given notice for the termination of the Frenchvale Option Agreement which will be effective immediately.

Jeff Stevens, CEO of Argyle commented, "The termination of the option agreement for the Frenchvale graphite project in Nova Scotia is a strategic decision to maintain focus of Argyle's management and allocation of funds to the exploration for the portfolio of Argyle silica projects and the Clay Howells rare earth element project in Ontario."

About Argyle Resources Corp.
Argyle Resources Corp. is a junior mineral exploration company engaged in acquiring, exploring, staking, and evaluating natural resource properties in North America. The Company holds 100% interests in the Pilgrim Islands, Matapedia, Lac Comporté, and Saint Gabriel quartzite silica projects in Québec, and the Clay Howells rare earth element project in Ontario. Argyle also holds an option to acquire up to 100% of the Frenchvale Graphite Property in Nova Scotia. The Company is engaged in a research partnership with the INRS, a high-level research and training institute funded by the Québec government.

ON BEHALF OF THE BOARD OF DIRECTORS
'Jeffrey Stevens'
President & CEO

For all other inquiries:
Email: info@argylresourcescorp.com
Phone: (825) 724-0033
Website: www.argyleresourcescorp.com

Forward-Looking Statements
All statements included in this press release that address activities, events or developments that Argyle expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements may involve, but are not limited to, statements with respect to the exploration and development of the Company's mineral properties and the use of proceeds from the Offering. These forward-looking statements involve numerous assumptions made by Argyle based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond Argyle's control. Readers should not place undue reliance on forward-looking statements. Except as required by law, Argyle does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.

Neither the Canadian Securities Exchange nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this news release.

________________________
¹ https://www.ctvnews.ca/canada/article/carney-says-canada-will-meet-new-nato-spending-target-by-developing-critical-minerals/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/256866

FAQ

What is Argyle Resources' (ARLYF) role in Canada's NATO spending commitment?

Argyle Resources' Clay Howells REE project in Ontario aligns with Canada's critical minerals development strategy, which is part of the country's 5% GDP NATO spending commitment.

Why did Argyle Resources terminate the Frenchvale Graphite Property option?

Argyle terminated the Frenchvale option agreement to focus management attention and resources on their silica projects and Clay Howells rare earth element project in Ontario.

How does Canada's NATO spending plan affect critical minerals development?

The plan includes significant investments in critical mineral supply chains, infrastructure development (ports, railways), and international collaboration for strategic resource development.

Where is Argyle Resources' Clay Howells REE project located?

The Clay Howells rare earth elements (REE) project is located in Ontario, Canada.

What infrastructure investments are planned under Canada's NATO commitment?

The commitment includes investments in ports, railways, and logistical corridors to ensure efficient access and distribution of critical minerals.