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Kingsmen Announces Letter of Intent for an Option to Acquire the Almoloya Gold-Silver Project in the Parral Mining District, Chihuahua

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Kingsmen Resources (OTCQB: KNGRF) has signed a non-binding letter of intent to acquire the Almoloya Gold-Silver Project in Mexico's Parral Mining District. The project, spanning 866.25 hectares, is located 30 kilometers from Kingsmen's Las Coloradas silver project and includes the historic Cigarrero and Las Juliettas mines.

The acquisition terms include total cash consideration of US$8.625 million over 8 years and a 2.5% NSR royalty to the Optionors. Kingsmen has a 60-day due diligence period and can repurchase 1% of the NSR for US$3 million.

The Almoloya Project features historical production from the Cigarrero Mine of approximately 1.25 million tonnes of ore grading 600 g/t Ag, 40% Pb, and 25% Zn. The project represents a consolidation of five mineral claims with potential for gold-rich oxide and sulphide mineralization.

Kingsmen Resources (OTCQB: KNGRF) ha firmato una lettera di intenti non vincolante per acquisire il Progetto Oro-Argento Almoloya nel distretto minerario di Parral, in Messico. Il progetto, che copre 866,25 ettari, si trova a 30 chilometri dal progetto argentifero Las Coloradas di Kingsmen e comprende le storiche miniere Cigarrero e Las Juliettas.

I termini dell'acquisizione prevedono un pagamento totale in contanti di 8,625 milioni di dollari USA distribuiti su 8 anni e una royalty NSR del 2,5% a favore degli Optionors. Kingsmen dispone di un periodo di due mesi per la due diligence e può riacquistare l'1% della NSR per 3 milioni di dollari USA.

Il progetto Almoloya presenta una produzione storica dalla miniera Cigarrero di circa 1,25 milioni di tonnellate di minerale con una gradazione di 600 g/t di argento, 40% di piombo e 25% di zinco. Il progetto rappresenta una consolidazione di cinque concessioni minerarie con potenziale per mineralizzazioni ossidate e solfuree ricche di oro.

Kingsmen Resources (OTCQB: KNGRF) ha firmado una carta de intención no vinculante para adquirir el Proyecto de Oro y Plata Almoloya en el Distrito Minero de Parral, México. El proyecto, que abarca 866,25 hectáreas, está ubicado a 30 kilómetros del proyecto de plata Las Coloradas de Kingsmen e incluye las históricas minas Cigarrero y Las Juliettas.

Los términos de la adquisición incluyen una consideración total en efectivo de 8,625 millones de dólares estadounidenses pagaderos en 8 años y una regalía NSR del 2.5% a los Opcionantes. Kingsmen tiene un período de diligencia debida de 60 días y puede recomprar el 1% de la NSR por 3 millones de dólares estadounidenses.

El Proyecto Almoloya presenta una producción histórica de la Mina Cigarrero de aproximadamente 1.25 millones de toneladas de mineral con ley de 600 g/t Ag, 40% Pb y 25% Zn. El proyecto representa una consolidación de cinco concesiones minerales con potencial para mineralización de óxidos y sulfuros ricos en oro.

Kingsmen Resources (OTCQB: KNGRF)는 멕시코 파랄 광산 지구의 Almoloya 금-은 프로젝트를 인수하기 위한 구속력 없는 양해각서에 서명했습니다. 이 프로젝트는 866.25헥타르에 걸쳐 있으며, Kingsmen의 Las Coloradas 은 프로젝트에서 30킬로미터 떨어진 위치에 있으며 역사적인 Cigarrero 및 Las Juliettas 광산을 포함합니다.

인수 조건에는 8년에 걸쳐 지급되는 총 현금 대금 862만 5천 달러와 옵션 제공자에게 지급되는 2.5% NSR 로열티가 포함됩니다. Kingsmen은 60일간의 실사 기간을 가지며, 300만 달러에 NSR의 1%를 재매입할 수 있습니다.

Almoloya 프로젝트는 Cigarrero 광산에서 약 1.25백만 톤의 광석, 은 600g/t, 납 40%, 아연 25%의 역사적 생산 실적을 보유하고 있습니다. 이 프로젝트는 금이 풍부한 산화광 및 황화광 광화 가능성을 가진 다섯 개의 광물권 통합을 의미합니다.

Kingsmen Resources (OTCQB : KNGRF) a signé une lettre d'intention non contraignante pour acquérir le projet or-argent Almoloya dans le district minier de Parral au Mexique. Le projet, qui s'étend sur 866,25 hectares, est situé à 30 kilomètres du projet argent Las Coloradas de Kingsmen et comprend les mines historiques Cigarrero et Las Juliettas.

Les conditions d'acquisition incluent une contrepartie totale en espèces de 8,625 millions de dollars US sur 8 ans et une redevance NSR de 2,5% aux Optionnaires. Kingsmen dispose d'une période de diligence raisonnable de 60 jours et peut racheter 1 % de la NSR pour 3 millions de dollars US.

Le projet Almoloya présente une production historique de la mine Cigarrero d'environ 1,25 million de tonnes de minerai avec une teneur de 600 g/t Ag, 40 % Pb et 25 % Zn. Le projet représente une consolidation de cinq concessions minières avec un potentiel de minéralisation oxydée et sulfureuse riche en or.

Kingsmen Resources (OTCQB: KNGRF) hat eine unverbindliche Absichtserklärung zum Erwerb des Almoloya Gold-Silber-Projekts im Bergbaudistrikt Parral in Mexiko unterzeichnet. Das Projekt umfasst 866,25 Hektar und liegt 30 Kilometer vom Silberprojekt Las Coloradas von Kingsmen entfernt und beinhaltet die historischen Minen Cigarrero und Las Juliettas.

Die Übernahmebedingungen sehen eine Gesamtzahlung in bar von 8,625 Millionen US-Dollar über 8 Jahre sowie eine 2,5% NSR-Royalty an die Optionsgeber vor. Kingsmen hat eine 60-tägige Due-Diligence-Phase und kann 1% der NSR für 3 Millionen US-Dollar zurückkaufen.

Das Almoloya-Projekt weist eine historische Produktion aus der Cigarrero-Mine von etwa 1,25 Millionen Tonnen Erz mit einem Gehalt von 600 g/t Ag, 40% Pb und 25% Zn auf. Das Projekt stellt eine Konsolidierung von fünf Mineralansprüchen dar und bietet Potenzial für goldreiche Oxid- und Sulfidmineralisierung.

Positive
  • Strategic acquisition expanding presence in Parral Mining District with 866.25 hectares of consolidated claims
  • Historical high-grade production from Cigarrero Mine: 1.25M tonnes at 600 g/t Ag, 40% Pb, 25% Zn
  • Significant exploration potential with gold values ranging from 1.7 to 7.8 g/t in historical workings
  • Project location near existing flagship Las Coloradas silver project enables operational synergies
  • Structured payment terms with majority of payments ($6.5M of $8.625M) due in years 5-8
Negative
  • Non-binding LOI requires further due diligence and definitive agreement
  • Substantial total acquisition cost of US$8.625 million plus 2.5% NSR royalty
  • No systematic exploration since early 2000s, requiring significant investment to assess potential
  • Historical mining limited to shallow depths, deeper potential remains unproven

Vancouver, British Columbia--(Newsfile Corp. - July 9, 2025) - Kingsmen Resources Ltd. (TSXV: KNG) (OTCQB: KNGRF) (FSE: TUY) ("Kingsmen" or the "Company")  is pleased to announce that it has entered into a non-binding letter of intent dated July 04, 2025 (the "LOI") for an option to acquire the Almoloya Project (the "Almoloya Project"), a gold-silver project, located in the Parral Mining District of Chihuahua, Mexico. The Almoloya Project is located approximately 30 kilometres from the Company's flagship Las Coloradas silver project.

The Almoloya Project was identified as part of Kingsmen's ongoing regional exploration programs in the Parral mining district, which prioritizes historic past producing mines with silver-gold potential and has a focus on epithermal and carbonate replacement deposits ("CRD") precious metal systems. The Almoloya Project represents the culmination of a land consolidation process that has taken over 20 years to complete. The now-contiguous land package brings together historically fragmented claims, many of which were previously held and explored by major operators. Extensive historical data from these programs, conducted up until the early 2000s, is available to Kingsmen and provides a valuable foundation for future exploration. Since that time, the project has seen no systematic exploration by either junior or major companies, leaving potential untapped in a prospective and historically productive district.

Click here to see locator map: https://www.kingsmenresources.com/area-history

Artisanal mining for gold with accessory silver, lead, and zinc, has taken place on a small portion of the Almoloya Project up until recently. Mining was limited to shallow, near surface mineralization to a maximum depth of approximately 50 meters.

The Almoloya Project includes the past producing Cigarrero and Las Juliettas mines. The Almoloya Project represents a consolidation of five mineral claims into a single, contiguous land package covering 866.25 hectares (2,140.55 acres), with geology prospective for gold and CRD mineralization.

President Scott Emerson commented: "Since we began our regional exploration programs in the Parral Mining District, we have sought out properties of merit and had identified Almoloya as an acquisition target of interest, particularly since the project had been consolidated and offered district scale potential. With the completion of our recent financing, we moved to aggressively pursue the acquisition of the Almoloya project. This acquisition is part of our strategy to become the preeminent explorer in the Parral region and aligns with our objective of bringing new life to properties which have had historical production, through the application of modern day exploration techniques. The road-accessible Almoloya Project offers near-term potential for the discovery of gold and CRD deposits. Our current exploration programs are designed to deliver near-term significant discoveries."

The northwest-trending Julietta structural trend hosts gold mineralization in quartz veins and stockwork hosted in limestone and marble. There has been limited historic gold production from several old workings, and visible gold has recently been recovered by artisanal miners. Mineralization comprises native gold, haematite, limonite with trace amounts of pyrite and malachite. Servicio Geologico Mexicano (SGM; G13-A49) recorded gold values ranging from 1.7 to 7.8 g/t from old workings on the Julietta structural trend and interpreted the mineralization as stockwork-exoskarn related to intrusives mapped locally and also indicated by aeromagnetics (Figure 1).

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Figure 1

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There is potential for gold-rich oxide and sulphide mineralization along the Julietta structure. This structure is the primary, immediate target for diamond drilling.

The Cigarrero Mine lies on the north flank of the Sierra Almoloya and is road accessible. Historic reports indicate that more than twelve orebodies were exploited, with production totalling approximately 1.25 million tonnes of ore grading 600 g/t Ag, 40% Pb, and 25% Zn, with variable amounts of copper and gold. These high grades were primarily from secondary lead-zinc oxide material, which, according to historic sources, extended as deep as 400 meters below surface or approximately 150 meters below the valley floor.

Old mine sketches describe orebodies up to 50 meters wide, with even greater vertical dimension. Mining at Cigarrero ceased in the 1920s after depletion of shallow oxide reserves, as interest in deeper sulphide mineralization was limited at that time. Historic mining was terminated at the water table.

Geologically, the Sierra Almoloya district consists mainly of massive limestone and alteration equivalents of the Cretaceous Aurora Formation, which host silver-lead-zinc mineralization at the Naica mine located 40 km to the north. Structurally, Almoloya sits at the intersection of two major basement features. The first is a NE to ENE trending structure that extends from the Parral and the Santa Barbara - San Francisco del Oro districts. The second structure is the reflection of a WNW, major basement feature that may represent the Mojave- Sonora Megashear1. The Almoloya Project is situated within a large, 14 X 12 km hydrothermal system, with district-scale potential for large sulphide CRDs, with near-surface oxide potential2.

1Queenston Mining Inc. news release July 8, 2005.
2http://pdf.secdatabase.com/241/0001137171-05-001127.pdf

Terms of the LOI

The Company has entered into an LOI with arms length parties pursuant to which the Company has the option to acquire the Amoloya Project (the "Option"). The Company has a 60-day due diligence period under the LOI. The parties intend that the LOI will be replaced by definitive agreements within 60 days.

The Option may be exercised by the Company paying the Optionors total cash consideration of US $8,625,000 (the "Option Payments") over 8 years in staged payments from the effective date of the definitive agreements, with years 5 through 8 payable in the total amount of US $6.5 million. Following the exercise of the Option, the Company will grant a 2.5% net smelter returns royalty ("NSR") to the Optionors, with an option for the Company to repurchase 1% of the NSR for the cash payment of US $3 million.

No finder's fees or commissions will be paid in connection with the Option.

The Option will be subject to applicable regulatory approvals, including the approval of the TSX Venture Exchange ("TSXV") and the satisfaction of certain other closing conditions customary in transactions of this nature.

Qualified Person

Kieran Downes, Ph.D., P.Geo., a director of Kingsmen and Qualified Person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure set out in this news release.

About Kingsmen Resources

Kingsmen Resources is a mineral exploration company focused on advancing its 100% held Las Coloradas Project located in the prolific mining district of Parral Mexico. The project hosts the historic past producing high-grade silver mine, Las Coloradas. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, on -trend, high- grade deposits. In addition, the company has a 1% NSR on the Los Ricos North project operated by GoGold Resources Inc.in Mexico. The Company's leaders have extensive experience in the mining and financial sectors. Kingsmen is a publicly-traded company (TSXV: KNG) (OTCQB: KNGRF) (FSE: TUY) and is headquartered in Vancouver, British Columbia.

On behalf of the Board,

"Scott Emerson"

Scott Emerson, President & CEO
Phone: 604- 685-9316
Email: se@kingsmenresources.com
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Forward-Looking Statement:

Certain disclosure contained in this news release may constitute forward-looking information or forward-looking statements, within the meaning of Canadian securities laws. These statements may relate to this news release and other matters identified in the Company's public filings. In making the forward-looking statements the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. These risks and uncertainties include but are not limited to: the political environment in which the Company operates continuing to support the development and operation of mining projects; the threat associated with outbreaks of viruses and infectious diseases; risks related to negative publicity with respect to the Company or the mining industry in general; planned work programs; permitting; and community relations. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/258204

FAQ

What are the terms of Kingsmen Resources (KNGRF) Almoloya Project acquisition?

Kingsmen will pay US$8.625 million over 8 years and grant a 2.5% NSR royalty to acquire the project, with an option to repurchase 1% of the NSR for US$3 million.

What is the historical production from the Almoloya Project's Cigarrero Mine?

The Cigarrero Mine historically produced approximately 1.25 million tonnes of ore grading 600 g/t Ag, 40% Pb, and 25% Zn.

How large is the Almoloya Project and where is it located?

The Almoloya Project covers 866.25 hectares and is located in the Parral Mining District of Chihuahua, Mexico, approximately 30 kilometers from Kingsmen's Las Coloradas silver project.

What are the gold grades reported at the Almoloya Project?

According to Servicio Geologico Mexicano, gold values from old workings on the Julietta structural trend ranged from 1.7 to 7.8 g/t.

When will Kingsmen Resources complete the Almoloya Project acquisition?

Kingsmen has a 60-day due diligence period to complete definitive agreements, subject to TSX Venture Exchange approval.
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