Forge Resources Advances La Estrella Coal Project with Key Heavy Equipment for Automated Operations

Rhea-AI Summary

Forge Resources (OTCQB: FRGGF) reported significant progress at its La Estrella Coal Project in Colombia, marked by the arrival of a new Panzer conveyor system and advancement in camp construction. The company has completed 85% of its initial mining camps, featuring 12 rooms capable of housing over 24 personnel.

The company also announced the closing of a flow-through private placement, raising gross proceeds of $500,000.60 through the issuance of 909,092 units at $0.55 per unit. Each unit includes one flow-through common share and a half warrant exercisable at $0.70 for 36 months.

The mining camp infrastructure includes dedicated sanitary units and foundations designed for future expansion. Additionally, a Mechanical Station is under construction to house energy generation systems and pneumatic compressors, supporting the project's automated operations.

Positive

• Investment in automated Panzer conveyor system enhances operational efficiency and safety
• Mining camp construction 85% complete with capacity for future expansion
• Successfully closed $500,000.60 flow-through private placement financing
• Development of purpose-built Mechanical Station for energy independence

Negative

• Reliance on additional financing through private placement and warrants indicates ongoing capital needs
• Project still in development phase with no current revenue generation

Vancouver, British Columbia--(Newsfile Corp. - September 24, 2025) - Forge Resources Corp. (CSE: FRG) (OTCQB: FRGGF) (FSE: 5YZ) ("FRG" or the "Company") is pleased to announce continued progress at its fully permitted La Estrella Coal Project in Santander, Colombia, highlighted by the arrival of key heavy equipment to support automated, mechanized operations and major advancements in camp construction for its expanding underground mining workforce.

PJ Murphy, CEO of Forge Resources, states:

"We are extremely encouraged by the progress towards our revenue generating bulk sample program at our coal project. The addition of this heavy equipment represents an important step in advancing La Estrella toward efficient, mechanized, automated operations in Colombia. At the same time, the construction of our mining camps ensures we can accommodate a growing workforce that operates around the clock, three shifts per day - improving both efficiency and the rate of advance. We remain committed to building strong, sustainable project that will support long-term success for our shareholders, employees, and local communities."

Figure 1. Panzer located onsite ready to be implemented

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8680/267766_59ff6e16049ad908_001full.jpg

Panzer Arrives at La Estrella Coal Project

Forge Resources has taken delivery of a fully paid-for Panzer conveyor system (Figure 1), now located on-site at La Estrella. This new unit marks another step in mechanizing underground operations and reduces reliance on the combustion-powered equipment previously used for muck removal. The Panzer system will also be a key component in the extraction of coal. Operational benefits of the Panzer system includes:

• Provides safer, more efficient removal of material from underground tunnels;

• Lowers emissions and fuel costs by reducing reliance on combustion equipment;

• Enhances operational efficiency and improves worker safety.

With this investment, Forge continues to modernize its operations in Colombia, strengthening both productivity and safety. This supports the Company's strategy to advance toward streamlined, automated coal extraction.

Camp Construction Updates

The Company is pleased to report significant progress at its La Estrella coal project in Colombia, with construction of the initial mining camps now 85% complete (Figure 2 and 3). Designed to support early-stage operations, the camps include 12 rooms with capacity to accommodate more than 24 personnel. Each pair of rooms is served by a dedicated sanitary unit, with six units installed to ensure comfort and hygiene. Notably, the camp foundations have been strategically engineered to support a future second floor, allowing for seamless expansion as operational needs grow. This milestone marks a key step in advancing the La Estrella project toward full-scale development.

Figure 2. Exterior of camp under construction

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8680/267766_59ff6e16049ad908_002full.jpg

Figure 3. Interior of double occupancy camp accommodations

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8680/267766_59ff6e16049ad908_003full.jpg

Construction is continuing to advance on a purpose-built Mechanical Station at the La Estrella coal project, designed to accommodate the site's energy generation systems, and pneumatic compressor. This facility will deliver a reliable and efficient power source to support underground operations, minimize reliance on external energy supply, and strengthen the overall resilience of site infrastructure. Engineered with scalability in mind, the generator room will also enable future increases in production capacity - providing the energy foundation required to operate multiple shifts daily and accelerate project development.

Flow-through Private Placement Financing Closing

Forge Resources has closed its previously announced non-brokered flow-through private placement (the "Private Placement") and will issue 909,092 units (the "Units") at a price of $0.55 per Unit for aggregate gross proceeds of $500,000.60 (the "Offering").

Each Unit consists of one flow-through common share (each a "Share") in the capital of the Company and one-half of one transferrable non-flow-through common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one common share of the Company (a "Warrant Share") for a period of 36 months following the issuance thereof at an exercise price of $0.70 per Warrant Share. Upon closing of the Offering, the Company paid finders fees to one finder consisting of a cash commission of $35,000.04 and 63,636 warrants exercisable for a period of 36 months from the closing of the Private Placement at a price per share of $0.55.

The gross proceeds from the Units will still be utilized for incurring Canadian exploration expenses and flow-through mining expenditures. All securities issued are subject to a statutory holder period of four months and one day from the date of issuance. Finders' fees payable in connection with the Private Placement, are subject to and in accordance with the policies of the CSE.

About Forge Resources Corp.

Forge Resources Corp. is a Canadian-listed junior exploration company. The Company holds an 80% interest in Aion Mining Corp., a company that is developing the fully permitted La Estrella coal project in Santander, Colombia. La Estrella contains eight known seams of metallurgical and thermal coal. The Company also holds an option on the Alotta project, a prospective porphyry copper-gold-molybdenum project located 50 km south-east of the Casino porphyry deposit in the unglaciated portion of the Dawson Range porphyry/epithermal belt in the Yukon Territory of Canada.

Qualified Person

Lorne Warner, President and P. Geo, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the scientific and technical disclosure in this news release.

On behalf of the Board of Directors
"PJ Murphy", CEO Forge Resources Corp.
info@forgeresources.com

Forward-Looking Statements

Certain of the statements made and information contained herein may contain forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, information concerning the Aion Acquisition. Forward-looking information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory bodies). Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. In particular, there can be no assurance that the Proposed Transaction will be completed as described or at all. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of the Company, its financial or operating results or its securities. The reader is cautioned not to place undue reliance on forward-looking information. We seek safe harbor.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/267766

FAQ

What progress has Forge Resources (FRGGF) made at its La Estrella Coal Project in September 2025?

Forge Resources has installed a new Panzer conveyor system and achieved 85% completion of its initial mining camps, which can accommodate over 24 personnel. The company is also constructing a Mechanical Station for energy generation.

How much did Forge Resources raise in its September 2025 private placement?

Forge Resources raised $500,000.60 through a flow-through private placement, issuing 909,092 units at $0.55 per unit, with each unit including one share and a half warrant exercisable at $0.70.

What are the key features of Forge Resources' new mining camp at La Estrella?

The mining camp features 12 rooms capable of housing over 24 personnel, with six dedicated sanitary units. The foundations are engineered to support a future second floor for expansion.

How will the Panzer conveyor system benefit Forge Resources' operations?

The Panzer system will provide safer and more efficient material removal from underground tunnels, reduce emissions and fuel costs by decreasing reliance on combustion equipment, and enhance operational efficiency.

What is the purpose of Forge Resources' new Mechanical Station at La Estrella?

The Mechanical Station will house energy generation systems and pneumatic compressors, providing reliable power for underground operations while reducing dependence on external energy sources.