TriStar Gold Announces Commencement of Civil Public Action Regarding Environmental Licence for Castelo Do Sonhos Project

Rhea-AI Summary

TriStar Gold (OTCQB: TSGZF) announced that Brazil's Federal Prosecutor's Office (MPF) has filed a Civil Public Action against the State Environmental Secretariat of Pará and the company's subsidiary regarding the Castelo do Sonhos Project. The lawsuit seeks to suspend the environmental licensing process pending revised environmental impact studies and Indigenous consultation.

While the MPF requested an immediate injunction, the Federal Judge declined to grant immediate suspension, noting the case's lack of urgency given investigations dating back to 2019. The company has 15 business days to file a defense. CEO Nick Appleyard expressed confidence in demonstrating compliance with environmental licensing requirements.

Positive

• Federal Judge declined to grant immediate suspension of environmental license
• Judge acknowledged potential negative socioeconomic impacts of suspension
• Company maintains confidence in the legitimacy of its licensing process

Negative

• Legal challenge to environmental licensing process could delay project development
• Requirement for additional Indigenous consultation and environmental studies may increase costs
• Regulatory uncertainty regarding project's environmental permits

Scottsdale, Arizona--(Newsfile Corp. - August 6, 2025) - TriStar Gold Inc. (TSXV: TSG) (OTCQB: TSGZF) (the "Company" or "TriStar") has been advised that on July 30, 2025, the Federal Prosecutor's Office ("MPF") of Brazil filed a Civil Public Action before the Federal Court of Pará against the State Environmental Secretariat of Pará ("SEMAS/PA") and Mineração Castelo dos Sonhos S.A. ("MCDS"), the wholly-owned Brazilian subsidiary of the Company which holds the Castelo do Sonhos Project. The lawsuit seeks the suspension of the environmental licensing process for the Castelo de Sonhos Project until the environmental impact studies in respect of the Project are revised, an Indigenous component study is conducted, and a free, prior and informed consultation (FPIC) process is carried out with Indigenous communities from the Baú and Menkragnoti Territories. The MPF sought an immediate injunction suspending the environmental licence, however the Federal Judge hearing the injunction application noted that the MPF's investigations have been ongoing since 2019, and found that there was no urgency to the injunction application, and therefore deferred the analysis of the injunction request until after SEMAS/PA and MCDS have filed their defenses and the National Indigenous Foundation has submitted its clarifications. The Federal Judge also acknowledged the potential socioeconomic impacts of a suspension at this stage and emphasized the need to ensure due process, including the right to an effective defense. MCDS and SEMAS have 15 business days to file a defense against the injunction application, following which the Judge will decide on the appropriate path forward.

Nick Appleyard, TriStar's President and CEO stated: "TriStar remains confident that, upon submission of its defense, it will demonstrate that there are no irregularities in the environmental licensing process of the Castelo de Sonhos Project, which is in alignment with SEMAS/PA's position."

About TriStar

TriStar Gold is an exploration and development company focused on precious metals properties in the Americas that have the potential to become significant producing mines. The Company's current flagship property is Castelo de Sonhos in Pará State, Brazil. The Company's shares trade on the TSX Venture Exchange under the symbol TSG and on the OTCQB under the symbol TSGZF. Further information is available at www.tristargold.com.

On behalf of the board of directors of the company:

Nick Appleyard
President and CEO

For further information, please contact:

TriStar Gold Inc.
Nick Appleyard
President and CEO
480-794-1244
info@tristargold.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 release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Forward-Looking Statements

Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securities Litigation Reform Act of 1995. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects" or "it is expected", or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements in this press release include, the Company's expectations regarding the outcome of the Civil Public Action referenced above, as well as the related injunction application. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause the Company's plans to change include the ongoing litigation process, and legislative, political or economic developments in Brazil. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company 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 applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/261453

FAQ

What legal action was filed against TriStar Gold's Castelo do Sonhos Project?

Brazil's Federal Prosecutor's Office filed a Civil Public Action on July 30, 2025, seeking to suspend the environmental licensing process until environmental impact studies are revised and Indigenous consultation is completed.

How did the Federal Judge rule on the immediate injunction request for TSGZF's project?

The Judge declined to grant immediate suspension, citing lack of urgency given the investigations' history since 2019, and deferred analysis until after defenses are filed.

What is the deadline for TriStar Gold to respond to the legal action?

TriStar Gold's subsidiary MCDS has 15 business days to file a defense against the injunction application.

What Indigenous territories are affected by TriStar Gold's Castelo do Sonhos Project?

The lawsuit mentions the Baú and Menkragnoti Indigenous Territories as communities requiring free, prior and informed consultation (FPIC) process.

What is TriStar Gold's response to the environmental license challenge?

CEO Nick Appleyard stated the company is confident it will demonstrate no irregularities in the environmental licensing process, aligning with SEMAS/PA's position.