American Pacific Highlights Strategic Importance of Palmer VMS Project to U.S. Critical Mineral Supply Chain due to Barite Exposure

Rhea-AI Summary

American Pacific Mining (OTCQX: USGDF) highlights the strategic value of its Palmer VMS Project in Southeast Alaska as a potential U.S. source of barite (BaSO4).

Key facts: Palmer hosts an NI 43-101 resource with 980,000 tonnes barite Indicated and 3.05 million tonnes Inferred; 2018 SGS metallurgical tests produced oilfield-grade barite with 91.1% flotation recovery; Imarc cited a $157/tonne barite price in Q2 2025. The release cites USGS and Visual Capitalist findings on near-100% U.S. import reliance and a potential $1 billion GDP exposure from major supply disruption.

Positive

• 980,000 tonnes barite in Indicated category
• 3.05 million tonnes barite in Inferred category
• 91.1% barite recovery reported in 2018 SGS test work
• Imarc barite price $157/tonne (Q2 2025)
• Potential co-product with copper-zinc-silver-gold resource

Negative

• 3.05 million tonnes barite Inferred — lower geological confidence
• No Proven/Probable reserves or production schedule disclosed
• Primary test work cited is from 2018, not recent confirmation

Vancouver, British Columbia--(Newsfile Corp. - October 14, 2025) - American Pacific Mining Corp. (CSE: USGD) (OTCQX: USGDF) (FSE: 1QC1) ("American Pacific" or the "Company") is pleased to highlight the strategic importance of its Palmer VMS Project ("Palmer" or the "Project") in Southeast Alaska due to its abundance of a key critical mineral - barite (barium sulphate or BaSO₄)-to the United States critical mineral supply chain.

The United States is a major global consumer of barite, but relies heavily on imports, due to limited domestic production capacity. This chronic supply deficit makes the U.S. particularly vulnerable to supply disruptions, particularly given the necessity of barite for oil and gas drilling-where even minor interruptions can halt operations, directly impacting GDP and national energy security. According to Visual Capitalist^[i], a significant disruption in barite supply could result in as much as $1 billion in GDP losses for the U.S., placing barite among the most supply-critical minerals.

Palmer hosts a NI 43-101 mineral resource estimate that includes 980,000 tonnes of barite in the Indicated category, and 3.05 million tonnes of barite in the Inferred category. In 2018, metallurgical test results completed by SGS Canada Inc (SGS) demonstrated that a premium-quality barite concentrate can be produced as a co-product from the high-grade copper-zinc-silver-gold resource at Palmer (See Company press release dated January 20, 2025; for more information on the current NI43-101 Technical Report).

Highlights of the at Palmer 2018 barite test work include:

• Produced barite concentrate meets all specifications for oilfield drilling grade barite, including specific gravity, particle size, and purity, and appears to be a market-ready product

• Simple Flowsheet -91.1% of barite recovered by flotation from the tails of copper and zinc flotation

Warwick Smith, American Pacific CEO, commented: "American Pacific's Palmer VMS Project in Alaska is poised to deliver barite as a potential byproduct alongside high-value copper and zinc, all of which are critical minerals as per USGS guidelines. The project also boasts gold and silver which have seen a 60% and nearly 80% increase in price, respectively, since the beginning of 2025. The polymetallic mix of Palmer contains substantial barite, which could provide a U.S. source of barium sulfate that could directly support critical industries should the Project reach production. Palmer's geological setting and resource mix place it among the few U.S. based advanced exploration assets with the potential to supply barite at scale."

About Barite

According to U.S. Geological Survey (USGS)'s 2025 ranking of all U.S. critical minerals, barite is nearly 100% import-reliant and is classified among the minerals most vulnerable to foreign supply interruption, presenting a direct risk to sectors, including oil and gas, medical, and defense. The US consumes approximately two million metric tonnes of barite annually, with a key use as a weighting agent in drilling fluids for energy exploration and production. Considering the significance of the oil and gas production for the U.S., a domestic source of barite in Alaska makes the Palmer Project unique amongst it peers.

Key statistics:

• The U.S. is one of the world's largest consumers of barite, but produces only a small fraction domestically, resulting in chronic net import reliance, with the vast majority of supply coming from India, while U.S. domestic supply remains insufficient to meet demand

• Barite is indispensable in oil and gas drilling; even brief interruptions in supply can halt drilling, impacting GDP and energy security.

• According to Visual Capitalist^[ii], major supply disruption of barite could result in $1 billion in U.S. GDP loss-placing barite in the upper tier among supply-critical minerals, mainly due to the higher prices faced by consuming industries, such as oil and gas drilling and output reductions if supply is restricted

• Barium sulfate is also critical for radiological medical imaging and as a filler in paints, plastics, and rubber, further highlighting its strategic significance.

• Trade disruptions could quickly impact vital industries making securing domestic supply important for both energy and defense.

• Imarc Research now cites barite price of $157/tonne, as recently as Q2, 2025. (https://www.imarcgroup.com/barite-pricing-report)

About American Pacific Mining Corp.

American Pacific Mining Corp. is a precious and base metals explorer and developer focused on opportunities in the Western United States. The Company has two flagship assets: 100%-owned Palmer Project, a Volcanic Massive Sulphide (VMS) project in Alaska, and the 100%-owned Madison Project, a past-producing copper-gold project in Montana. For the Madison transaction, American Pacific was selected as a finalist in both 2021 and 2022 for 'Deal of the Year' at the S&P Global Platts Metals Awards, an annual program that recognizes exemplary accomplishments in 16 performance categories. Also, in American Pacific's asset portfolio are three high-grade, precious metals projects located in key mining districts of Nevada, USA: the Ziggurat Gold project, the Gooseberry Silver-Gold project; and the Tuscarora Gold-Silver project. The Company's mission is to grow by the drill bit and by acquisition.

The technical information in this news release regarding the Palmer Project has been reviewed and approved by Peter Mercer, P.Geo., Vice President of Advance Project for APM and a Qualified Person (QP) as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

On behalf of the American Pacific Mining Corp Board of Directors:

Warwick Smith, CEO & Director
Corporate Office: Suite 910 - 510 Burrard Street
Vancouver, BC, V6C 3A8 Canada

Investor relations contact:

Kristina Pillon, High Tide Consulting Corp.
604.908.1695 / Kristina@americanpacific.ca

Media relations contact:

Adam Bello, Primoris Group Inc.
416.489.0092 / media@primorisgroup.com

Full disclosure can be found in our NI 43-101 Technical Report for the Madison Project at www.americanpacificmining.com.

The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release.

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^[i] Visual Capitalist: https://www.visualcapitalist.com/all-u-s-critical-minerals-in-2025-ranked-by-supply-disruption-risk/?utm_source=twitter&utm_medium=social&utm_content=ap_x0xdrblbqh
^[ii] Visual Capitalist: https://www.visualcapitalist.com/all-u-s-critical-minerals-in-2025-ranked-by-supply-disruption-risk/?utm_source=twitter&utm_medium=social&utm_content=ap_x0xdrblbqh

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/270112

FAQ

How much barite does American Pacific's Palmer project report (USGDF)?

Palmer's NI 43-101 resource lists 980,000 tonnes Indicated and 3.05 million tonnes Inferred of barite.

Does Palmer produce oilfield-grade barite suitable for drilling (USGDF)?

2018 SGS test work reported a market-ready oilfield-grade barite concentrate meeting specifications, with 91.1% recovery by flotation.

What is the U.S. barite consumption and import reliance cited in the USGDF release?

The release cites ~2 million tonnes annual U.S. barite consumption and near-100% import reliance per USGS 2025 ranking.

What barite price does the USGDF announcement reference for Q2 2025?

The release cites Imarc Research pricing of $157 per tonne for barite in Q2 2025.

Could Palmer materially reduce U.S. barite import reliance according to USGDF?

The company positions Palmer as a potential domestic source that could support U.S. energy and defense industries if the project reaches production.