Salazar Comments on New Ecuadorian Mining Inspection Fee

Rhea-AI Summary

Salazar Resources (SRLZF) has responded to a new mining inspection fee implemented by Ecuador's Control and Regulation Agency (ARCOM). The fee, aimed at combating illegal mining, would require Salazar to pay approximately US$332,000 for its current concessions - US$47,000 due in June 2025 and US$285,000 in January 2026. This represents a tenfold increase compared to current annual concession fees. The company would face even higher fees upon completing its planned property acquisition from Silvercorp Metals. CEO Fredy Salazar criticized the fee as unsustainable, stating it would severely impact exploration activities and damage Ecuador's reputation as an investment destination. The company is working with various mining chambers and associations to challenge the regulation and is in discussions with the Ecuadorian government to address these concerns.

Positive

• Government's initiative to combat illegal mining activities in Ecuador

Negative

• New fee structure requires Salazar to pay US$332,000, ten times more than current concession fees
• Additional higher fees will be required for new properties and acquisitions
• Fee structure threatens exploration activities and future mineral discoveries in Ecuador
• Regulatory change damages Ecuador's reputation as a mining investment destination

Vancouver, British Columbia--(Newsfile Corp. - June 19, 2025) - SALAZAR RESOURCES LIMITED (TSXV: SRL) (OTCQX: SRLZF) (FSE: CCG.F) ("Salazar" or the "Company") comments on the new mining inspection fee being implemented by the Ecuadorian Control and Regulation Agency ("ARCOM"). The stated objective of this fee is to strengthen oversight and combat illegal mining activities. This fee is to be applied to all mining operations, except for artisanal mining, with the aim of generating funds to support enforcement efforts.

As presented, the proposed fee would require the Company to pay approximately US$332,000 for its current concessions, of which US$47,000 is due in June 2025 and US$285,000 is due in January 2026. A significantly higher fee will be incurred on the completion of the purchase of exploration properties from Silvercorp Metals Inc (see news release December 23, 2024), or on any new licences granted to Salazar. The payments envisaged by the ARCOM decree are not supportable and represent approximately ten times the amount the Company pays for its annual concession fees in Ecuador.

The Company is collaborating with various chambers and associations in the Ecuadorian mining sector and all other mining/exploration companies in Ecuador, to ensure that relevant authorities understand the damage that this fee will do to the Ecuadorian Mining Industry and to the reputation of the Country as an investment destination. The ARCOM resolution places an unsustainable cost burden on companies operating within the sector and undermines confidence in Ecuador's regulatory consistency and commitment to mining development.

The Company has reached out to the Ecuadorian Government at the highest levels and will continue in discussions with the Mining Chamber of Ecuador and the Company's respective legal counsels as joint industry efforts are taking place to rescind this regulation. The Company will assess options for further courses of action.

Said Mr. Fredy Salazar, CEO, "While the Company applauds the government's efforts to strengthen supervision of mining activities to ensure criminal elements are eliminated from the sector, this new fee is not a good solution. The ruling will make it impossible to stake and hold large land holdings on which to conduct exploration and find the next generation of mineral deposits. Exploration is an essential part of a successful mining industry, and the new fee structure will stop most exploration in Ecuador and furthermore it will worsen the international reputation of the Country. We are in discussions with the government to ensure that it is aware of the unintended consequences of this ill-conceived ruling."

About Salazar
Salazar Resources Limited is focused on creating value and positive change through discovery, exploration, and development in Ecuador. The team has an unrivalled understanding of the geology in-country and has played an integral role in the discovery of many of the major projects in Ecuador, including the two newest operating gold and copper mines. Salazar Resources has a wholly owned pipeline of copper-gold exploration projects across Ecuador with a strategy to make another commercial discovery and farm-out non-core assets. The Company actively engages with Ecuadorian communities and together with the Salazar family it co-founded The Salazar Foundation, an independent non-profit organization dedicated to sustainable progress through economic development. At its maiden discovery, Curipamba, Salazar Resources has a 25% stake fully carried through to production. The Company is in the process of acquiring 100% of two copper-gold porphyry projects, Pijili and Santiago.

For further information from Salazar Resources, please contact Nick DeMare, Director, at ndemare@chasemgt.com or at 604-685-9316. Please also visit the Salazar Resources website at www.salazarresources.com.

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 release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/256080

FAQ

What is the new mining inspection fee announced by ARCOM in Ecuador affecting Salazar Resources (SRLZF)?

ARCOM has implemented a new mining inspection fee requiring Salazar Resources to pay approximately US$332,000 for its current concessions, split between US$47,000 in June 2025 and US$285,000 in January 2026.

How much will the new ARCOM fee increase Salazar Resources' (SRLZF) current concession costs in Ecuador?

The new fee represents approximately ten times the amount the company currently pays for its annual concession fees in Ecuador.

What actions is Salazar Resources (SRLZF) taking regarding the new Ecuadorian mining fee?

Salazar is collaborating with mining chambers, associations, and other mining companies to challenge the regulation, while also engaging in discussions with the Ecuadorian government at the highest levels.

How will the new ARCOM fee impact mining exploration in Ecuador according to Salazar Resources (SRLZF)?

According to CEO Fredy Salazar, the fee will make it impossible to stake and hold large land holdings for exploration, effectively stopping most mining exploration activities in Ecuador.

When are the new ARCOM mining inspection fees due for Salazar Resources (SRLZF)?

The fees are split into two payments: US$47,000 due in June 2025 and US$285,000 due in January 2026.