Spark Energy Minerals Extends Arapaima Gallium-REE Mineralization to 4.4 km Strike with Peak 85 g/t Ga2O3 Assays

Consistent Near-Surface Gallium Mineralization Confirmed by Twelve-Hole Step-Out Drilling

Spark Energy Minerals completed a twelve-hole reverse circulation drilling campaign targeting the Cruzeta zone within its flagship Arapaima Project. The holes, numbered ARA-RC-009 through ARA-RC-020, successfully demonstrated that near-surface gallium mineralization extends over a much larger area than initially identified from earlier discovery holes in the eastern Cruzeta target.

All twelve holes consistently intersected gallium mineralization from surface, reinforcing the company’s geological model that the mineralization results from a systematic vertical pattern linked to deep tropical weathering of granitic host rocks. The westward extension of approximately 2.9 kilometres into Cruzeta’s western area indicates continuity of the geological processes responsible for mineralization.

High Gallium Grades Evident Across Both Eastern and Western Cruzeta Areas

Gallium oxide grades from the drilling campaign show elevated values starting at surface and extending downward. In the western Cruzeta area, composite intervals ranged from 4 to 30 metres thick with grades between 58 and 77 g/t Ga8O3. The highest individual 2-metre sample assayed 85 g/t Ga8O3 at 10–12 metres depth in hole ARA-RC-011, marking the program’s peak gallium result. Holes ARA-RC-011 and ARA-RC-012 delivered the most notable composite intervals, with 30 metres at 69 g/t Ga8O3 and 12 metres at 77 g/t Ga8O3 respectively, both starting at surface.

Similarly, the eastern Cruzeta area showed consistent gallium mineralization with composite intervals from 4 to 22 metres grading between 49 and 67 g/t Ga8O3. Hole ARA-RC-017 returned 20 metres at 67 g/t Ga8O3 from surface, and ARA-RC-018 intersected 22 metres at 58 g/t Ga8O3 from surface. These results confirm that the gallium-bearing zone extends across both eastern and western sectors of the expanded target.

Substantial Rare Earth Element Zones Found Beneath Gallium Mineralization

Drilling beneath the near-surface gallium zones encountered consistent rare earth element (REE) mineralization. The strongest REE interval was in hole ARA-RC-011 (western area), which returned 14 metres at 3,125 ppm total rare earth oxides (TREO) from 44 metres depth. Within this interval, a 2-metre sample assayed 12,039 ppm TREO (1.20% TREO), the highest TREO grade recorded in the program, indicating potential economic significance pending metallurgical recovery.

Across all twelve holes, REE intervals above a 500 ppm TREO cutoff ranged from 16 to 52 metres thick. Notable composite intervals include ARA-RC-012 (western) with 34 metres at 1,772 ppm TREO; ARA-RC-013 (western) with 32 metres at 2,255 ppm TREO; and ARA-RC-018 (eastern) with 32 metres at 2,456 ppm TREO. These findings confirm a thicker rare earth-bearing zone underlying the gallium cap, supporting a vertically zoned mineral system interpretation.

Magnet Rare Earth and NdPr Content Highlight Strategic Mineralization Value

The rare earth mineralization at Cruzeta contains significant magnet rare earth oxides (MREO) — calculated as Nd8O3 + Pr6O11 + Dy2O3 + Tb4O7 — and neodymium-praseodymium (NdPr) components, critical for clean energy and defense uses. MREO comprised 13.5% to 25.2% of TREO across the drill holes, while NdPr ranged from 12.9% to 24.2% of TREO. Absolute NdPr concentrations ranged from 181 ppm to 756 ppm, with the highest value in hole ARA-RC-011 (756 ppm NdPr over 14 metres).

The presence of these economically important magnet rare earth elements adds strategic importance due to their premium pricing and critical applications in permanent magnets for wind turbines, electric vehicles, and defense technologies. The company emphasizes that all reported grades are in-situ assay results and do not imply recoverable content or economic viability at this exploration stage.

Geological Model Supports Deep Tropical Weathering and Ionic-Adsorption Clay-Style Deposit

The vertical zonation observed—near-surface gallium overlying thicker rare earth zones—is consistent with supergene enrichment from deep tropical weathering of granitic rocks. This aligns with ionic-adsorption clay (IAC) style rare earth systems, typical in tropical and subtropical regions where chemical weathering concentrates rare earths in clay minerals near surface. Gallium, usually recovered as a by-product of bauxite and zinc processing globally, occurring near surface within an IAC-style rare earth system is a key exploration feature.

This vertical pattern’s recurrence across the 4.4-kilometre strike of Cruzeta supports a systematic geological process rather than isolated enrichment pockets. Provided strip logs illustrate pedogenic horizons between fresh rock and regolith alongside TREO and Ga8O3 assays, underpinning ongoing exploration potential.

Western Cruzeta Extension Identified as Priority Drill Target

The western Cruzeta area, extending approximately 2.9 kilometres from the eastern discovery zone, yielded some of the program’s strongest results. Hole ARA-RC-011 produced the highest individual gallium (85 g/t Ga8O3) and TREO (12,039 ppm) samples. Hole ARA-RC-012 delivered the thickest high-grade gallium composite (12 metres at 77 g/t Ga8O3 from surface). These outcomes support prioritizing the western area for follow-up drilling rather than treating it as a peripheral target.

This prioritization informs resource definition strategy, indicating the western zone’s potential for additional high-grade discoveries and justifying further drilling investment. The company’s ongoing 2,000-metre RC drilling program, nearing completion, will include step-out and infill holes to refine the geometry and grade distribution of mineralized zones across Cruzeta.

Metallurgical Testing Underway at ANSTO; Recovery Data Pending

Samples have been submitted to the Australian Nuclear Science and Technology Organisation (ANSTO) for metallurgical testing, a crucial step to determine if the elements can be economically extracted with acceptable technical and environmental performance. No recovery results are available yet, and the company reiterates that reported assay grades do not guarantee recoverability.

Results from ANSTO testing are expected to be important catalysts for investor interest, potentially strengthening the project’s exploration case if recovery proves feasible. The company is coordinating test work timing with its news flow and disclosure schedule, suggesting results may be released in the coming months.

Arapaima Project Situated in Brazil’s Emerging Lithium Valley

The Arapaima Project covers approximately 91,900 hectares in Minas Gerais State’s Lithium Valley, a region attracting significant exploration due to lithium potential. While current results focus on Cruzeta’s gallium-REE mineralization, the project hosts multiple targets for both gallium-REE and lithium mineralization, offering diverse value creation opportunities.

Gallium is classified as a critical mineral by Canada, the U.S., and the EU, with applications in semiconductors, LEDs, electric vehicles, solar cells, and defense. Rare earth elements are similarly critical for permanent magnets, batteries, and clean energy technologies, aligning Arapaima with global supply chain priorities for energy transition minerals.

Data Verification and QA/QC Procedures Comply with NI 43-101 Standards

The company detailed its quality assurance and quality control protocols, including blanks, field duplicates, and certified reference materials integrated into sampling. Samples were collected at 2-metre intervals from vertical RC holes and analyzed by SGS Geosol Ltda, an ISO-certified independent laboratory. Analytical methods included sodium peroxide fusion followed by ICP-MS/OES.

Scientific and technical information was reviewed and approved by Qualified Persons Jonathan Victor Hill, VP Exploration and Director, and Dr. Fernando Tallarico, CEO and Chairman, per NI 43-101 standards. Verification included review of lab certificates and quality-control data. The Qualified Persons noted verification was limited to available data as of the release date and does not constitute a mineral resource estimate.

Exploration-Stage Project with No Mineral Resource or Economic Assessment Completed

The Arapaima Project remains at the exploration stage with no mineral resource or reserve estimates, nor any economic studies completed. The company clarifies that reported drill intercepts are from individual holes and may not represent mineralization elsewhere or true widths. Geological interpretations and assay results are preliminary and do not guarantee economic viability or recoverable mineralization.

Marketing Agreement Established with AllPennyStocks.com Media Inc.

On July 16, 2026, Spark Energy Minerals entered a marketing agreement with AllPennyStocks.com Media Inc. (APS), subject to CSE approval. APS will provide investor relations, advertising, and marketing services for an initial four-month campaign starting July 22, 2026, for a total cash fee of CAD$63,567.22 plus taxes, already paid by the company. No securities or equity compensation are involved.

Services will include investor awareness, media syndication, and online marketing through APS’s website, newsletter, and syndication network. APS, based in Orillia, Ontario, operates allpennystocks.com and is an independent party with no prior relationship or equity interest in Spark. Founded in 1999, APS specializes in micro-cap investor awareness and financial media services.