Innovation Mining Signs LOI with Aurquest Alaska to Develop Nome-Based Gold Concentrate Processing Facility Using RZOLV™ Non-Cyanide Lixiviant

Vancouver, BC – August 27, 2025 – Innovation Mining Inc. (the “Company “or “Innovation”) is pleased to announce that it has signed a Letter of Intent (the “LOI”) with Aurquest Alaska Inc. (“Aurquest”), a Toronto-based company that owns a number of operating mines in Alaska and Central America. Pursuant to the terms of the Agreement, Innovation will test the scalability and applicability of its RZOLV formula for the extraction of precious metals from gravity concentrates and/or concentrate tailings from Aurquest’s placer mining operations in Alaska.

Following completion of this bulk test, Innovation and Aurquest will discuss and consider further collaboration which may include entering into a definitive agreement for a limited exclusive toll processing licensing arrangement for the state of Alaska.

Alaska Gold Production and Recovery Challenges

In 2024, Alaska’s hardrock and placer mines produced approximately 959,000 troy ounces of gold, a 32% increase over 2023’s total of 728,000 ounces. Placer mines contributed an estimated 75,000 ounces (valued at roughly US$225 million) from more than 200 active operations.

Placer mining in Alaska predominantly relies on gravity recovery of gold entrained in heavy mineral “black sands”, composed mainly of ilmenite (FeTiO₃), magnetite, garnet, rutile, and monazite. Depending on geology and circuit design, black sand yields typically range from 1–20 lb/yd³ in inland placers and can exceed 100 lb/yd³ in beach deposits such as Nome.

A persistent challenge for the industry is the recovery of very fine (“flour”) gold, often under 200 mesh, which is commonly lost to black sand concentrate tailings. According to USGS, Bureau of Mines, and Alaska Department of Natural Resources studies, 5–30% of total gold can be lost this way—equating to an estimated 2,000 to 22,000 ounces annually in Alaska. Nome’s beach and offshore deposits are particularly affected due to the fine particle size and turbulent processing conditions.

By harnessing Innovation Mining's RZOLV technology, it addresses the long-standing challenges of recovering ultra-fine and composite gold, while entirely sidestepping the environmental issues associated with cyanide and smelting. This initiative not only promises to unlock significant economic value for Alaskan miners from previously discarded resources but also positions the region as a global leader in innovative, environmentally responsible gold extraction.

This LOI is preliminary in nature, and any definitive agreements will be subject to negotiation, satisfactory due diligence, and board approvals. There can be no assurance that this LOI will result in a completed transaction. The Company will provide further updates as discussions progress.

About Innovation Mining

Based in Vancouver, BC, Innovation Mining Inc. is a clean-technology company developing advanced hydrometallurgical solutions for precious metal recovery. Its flagship reagent system, RZOLV™, is engineered to deliver cyanide-comparable recoveries in a non-toxic, environmentally benign formulation suitable for heap, vat, tank, and gold concentrate leaching applications.

About Aurquest Alaska Inc.

Aurquest Alaska Inc. is an Alaska corporation based in Nome that focuses on mechanical placer gold mining. The company’s activities center on the Nome district’s strandline (“beach”) and near-shore/alluvial placer systems, with additional inland placer projects permitted elsewhere in western Alaska.

Contact

Duane Nelson

President & CEO

Innovation Mining Inc.

duane@innovationmining.com

Forward-Looking Statements

This News Release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and the United States securities legislation. Statements contained herein that are not based on historical or current fact, including without limitation statements containing the words "anticipates," "believes," "may," "continues," "estimates," "expects," and "will" and words of similar import, constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking information may include, but is not limited to, information concerning our Research and Development activities, the accuracy of our capital and operating cost estimates; production and processing estimates; the results, the adequacy of Innovation Mining’s financial resources, and timing of development of ongoing research and development projects, costs and timing of future revenues or profits and adequacy of financial resources. Wherever possible, words such as "plans", "expects", "projects", "assumes", "budget", "strategy", "scheduled", "estimates", "forecasts", "anticipates", "believes", "intends", "targets" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative forms of any of these terms and similar expressions, have been used to identify forward-looking statements and information. Statements concerning future revenue or earnings estimates may also be deemed to constitute forward-looking information. Any statements that express or involve discussions concerning predictions, expectations, beliefs, plans, projections, objectives, assumptions, or future events or performance are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, uncertainties, and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information. Forward-looking information is based on the expectations and opinions of Innovation Mining’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise. We do not assume any obligation to update forward-looking information, whether as a result of new information, future events, or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information. No stock exchange has approved or disapproved of the information contained herein.