Orea Update on Renewal of Montagne d'Or Concessions; French Supreme Court Sends Ruling Back to Court of Appeals

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Nov 22, 2023, 07:30 ET

VANCOUVER, BC, Nov. 22, 2023 /PRNewswire/ - Orea Mining Corp. ("Orea") (TSX: OREA) (OTCQB: OREAF) (FSE: 3CG) announces that the Supreme Court of France (Conseil d'État) has sent the ruling concerning the renewal of the Montagne d'Or mineral titles back to the Court of Appeals. Orea and its legal advisors remain confident of a positive outcome for Orea and its shareholders, however the timeline of a conclusive ruling cannot be reasonably predicted.

Montagne d'Or is a permitting stage, 5 million ounce open pit gold mine development project with good grade, excellent metallurgy, and considerable potential to increase ounces by infill and expansion drilling.^*

The Supreme Court of France has determined that a provision under the applicable mining code whereby mineral titles could be renewed automatically for 25-years is unconstitutional, and has referred the proceedings back to the Court of Appeal of Bordeaux where the French government will be required to demonstrate that the Montagne d'Or project does not comply with environmental regulations.

In the opinion of Orea and its legal advisors, it will be challenging for the French government to demonstrate that Montagne d'Or mineral titles should not be renewed on environmental grounds, for various reasons, including:

in 2021 the Court of Appeal of Bordeaux previously rejected the French government's request for an appeal citing that their environmental arguments were without merit;
Orea and Nordgold (the "JV") completed 7 years of baseline environmental studies which resulted in one of the most comprehensive ESIA's (Environmental and Social Impact Assessment) ever completed for mining permit applications in France;
the holding of numerous community and stakeholder meetings, and, of public hearings and workshops organized by the French government, which resulted in major modifications to the Montagne d'Or mine design; and most notably;
the French government commissioned a taskforce to assess the benefits and the impacts associated with the development of the gold mining industry in French Guiana, with an emphasis on Montagne d'Or, the most advanced large-scale gold project under development in France. The study was extremely favorable and strongly supported the Montagne d'Or mine development.

The taskforce included independent experts and drew from the government ministries involved in mine permitting in France, including individuals from the Ministry of Environment, the Ministry of Economy and Finance, and the Ministry of Interior. The taskforce consulted extensively with all stakeholders, including local administration and communities, indigenous groups, social and environmental NGOs, mining industry representatives, and socio-economic parties. Highlights:

The taskforce accessed a very large volume of technical documentation from studies carried out by reputable engineering firms.
The Montagne d'Or mine project is designed and developed in accordance with international standards and adapted to the local setting.
The project's environmental footprint is 30 times less than a legal alluvial mining project for the same amount of gold produced, alluvial being the most common method of gold production in French Guiana.
According to the French National Institute of Industrial Environment and Risk (INERIS), the use of cyanide is appropriate for gold extraction in French Guiana.
The French Geological Survey (BRGM) confirms that there is no viable alternative to cyanide in gold mining, and that cyanide is used by more than 400 facilities worldwide, including in the most modern European mines.
The environmental impacts and risks of the Montagne d'Or project are mitigated.

BACKGROUND OF THE LEGAL PROCEEDINGS LEADING TO THE SUPREME COURT DECISION

The Montagne d'Or mineral titles expired in December 2018 and we're rightfully due for automatic 25-year renewal under 1994 amendments to the French mining code (for details see October 8, 2020 news release). All conditions for automatic renewal were satisfied by the JV yet the French government did not renew the titles, nor did it formally deny renewal, instead it relied on a legal delay tactic under which an application could be "deemed" rejected if the government does not provide a formal response to an applicant within a prescribed time period; as in the case of Montagne d'Or.

The JV initiated legal proceedings in early 2019 to protect its right to the renewal of the mineral titles. The French government's position was that that Montagne d'Or project wasn't compatible with its environmental ambitions. On December 24, 2020, the court disagreed with the government, invalided the "deemed" refusal and ordered the government to renew the mineral titles within 6 months. In February 2021, the French government filed an appeal of the decision. Orea announced on July 22, 2021, that the Court of Appeal of Bordeaux rejected the French government's request for an appeal citing that the arguments put forth by the French Government were without merit.

In October 2021, Orea announced that the government exercised its right to request a final appeal to the Supreme Court of France. After failure by the government in two previous courts, to be considered for admission in the Supreme Court, the French government was required to demonstrate new facts and information; they took the position that the automatic 25-year renewal of the mineral titles was unconstitutional. The request was admitted in October 2022, and the Supreme Court made a recent ruling as outlined above.

*ABOUT MONTAGNE D'OR

Montagne d'Or is an open pit gold mine development project that hosts Measured Mineral Resources of 10.3 Mt at 1.804 g/t gold (600,000 oz), Indicated Mineral Resources of 74.8 Mt at 1.350 g/t gold (3.25 Moz) and additional Inferred Mineral Resources of 20.2 Mt at 1.48 g/t gold (960,000 oz), prepared in accordance with the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The Mineral Resources are confined within a pit shell defined by a gold price of US$1,300/oz and a cut-off grade of 0.4 g/t gold. Mineral Reserves have also been defined with Proven Mineral Reserves of 8.25 Mt at 1.99 g/t gold (530,000 oz) and Probable Mineral Reserves of 45.87 Mt at 1.50 g/t gold (2.2 M oz). The Proven and Probable Mineral Reserves were estimated using a gold price of US$1,200 per ounce at varied cut-off grades from 0.552 to 0.665 g/t gold, dependent on lithological rock types, economics and estimated metallurgical recovery. Montagne d'Or ore can be readily processed to recover the contained gold and silver values using unit operations considered standard to the industry.

Qualified Person

Rock Lefrançois, a director of the Company, is a Qualified Person under National Instrument 43-101, has reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed.

For more about Orea visit the company's website at www.oreamining.com

Robert F. Giustra
Chairman

Certain statements made herein, including statements relating to matters that are not historical facts and statements of the Company's beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute "forward looking information" within the meaning of applicable Canadian securities legislation ("forward-looking statements"). Forward-looking statements relate to future events or future performance, reflect current expectations or beliefs regarding future events and are typically identified by words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "budget", "plan", "estimate", continue", "forecast", "believe", "predict", "potential", "target", "would", "might", "will", "focus", "develop", "discuss", and similar words, expressions or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. These include, but are not limited to, statements and information regarding: the Company's plans to construct and develop the Montagne d'Or project, including anticipated timing thereof; the timing, processes, outcome and other matters related to the renewal of the Montagne d'Or concessions, including the appeal from the French Government; action plans in response to the sanctions imposed on Nord Gold PLC and certain shareholders of Nord Gold PLC, results of any discussions or negotiations with Nord Gold PLC regarding the acquisition of Montagne d'Or, directly or indirectly, including obtaining necessary approvals from regulatory and sanctions authorities in any jurisdiction, including extensions to such approvals; completion of the acquisition of the remaining 55.01% s interest of Montagne d'Or, if any, and timing of closing of such acquisition; plans to carry-out updated economic studies for Montagne d'Or project, including the possibility of resulting in a higher NPV; the impact from rulings by the French Constitutional Court regarding the French Mining Code; rulings by the Court of Appeal of Bordeaux regarding compliance with environmental regulations; if and when proceedings at the Court of Appeal of Bordeaux will take place and their timeline; the satisfaction of regulatory requirements in respect of the permitting, construction and operation of the Montagne d'Or project, including but not limited to, the submission and processing of mine permit applications, the timing thereof and the timing of completion of environmental and engineering studies; the Company's ability to renew the concessions for the Montagne d'Or project and to comply with the conditions thereof; economic analysis for the Montagne d'Or project and related exploration objectives and plans; the conversion of mineral resources into mineral reserves and the conversion of inferred mineral resources into higher resource classification categories; the acquisition of exploration projects including terms of acquisition, exploration or development plans, intentions to acquire additional exploration or development interests and the implications thereof; the elimination or reduction of costs; the production capacity and potential of future plant and equipment; future exploration and mine plans, objectives and expectations and corporate planning of the Company, future studies and environmental impact statements and the timetable for completion and content thereof; impacts of government sanctions against the Company's joint venture partner; and statements as to management's expectations with respect to, among other things, the matters and activities contemplated in this news release.

Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such statements. Such assumptions and analyses are made by the Company's management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are reasonable and appropriate in the circumstances. All assumptions and analyses are those of the Company's. There can be no assurance that such statements will prove to be accurate. There can be no assurance any private placement in progress will complete, nor any financing targeting long-term strategic investors. Forward-looking statements are based on numerous assumptions regarding present and future business strategies, local and global economic conditions, and the environment in which the Company will operate in the future, including compliance by the Company with regulatory and permitting requirements applicable in French Guiana, the sufficiency of Company's working capital; the Company's ability to secure additional funding for the continued exploration and development of its properties; the price of gold and other metals; and the Company's ability to retain key personnel. You are hence cautioned not to place undue reliance on forward-looking statements.

Certain important factors that could cause actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, political and economic risks in France, political and economic risks in French Guiana, risks related to sanctions in France, Canada, the UK, the US and elsewhere; risks relating to the Company's working capital; the renewal applications for the Concessions and the possible outcomes thereof; possible negative outcomes of any appeals from the decision of the Administrative Court of Cayenne in French Guiana; possible negative impacts from rulings by the Court of Appeal of Bordeaux; possible negative impacts from rulings by the French Constitutional Court regarding the French Mining Code; regulatory risk including but not limited to unforeseen changes in regulatory requirements, the Company's ability to enforce its contractual and other legal rights to explore and exploit its properties, risks related to exploration and development, permitting and licensing risk, the estimation of mineral resources and mineral reserves and related interpretations and assumptions, future profitability of the Company, the ability to obtain additional financing on a timely basis, the price of gold and marketability thereof, government regulations including with respect to taxes, royalties, land tenure and land use, title to the Company's properties, currency exchange rates and fluctuations, environmental risks, dilution resulting from the issuance of additional securities of the Company, joint venture risks, reliance on Nord Gold PLC as operator of the Montagne d'Or project, the availability of equipment, conflicts of interest, competition in the mining industry, uninsured risks, market fluctuations, global financial conditions, credit risk and risks arising from pandemics and epidemics. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.

Readers are cautioned not to place undue reliance on forward-looking statements. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predicted outcomes will not occur. Events or circumstances could cause the Company's actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are included in the "Risk Factors" section in Company's annual information form dated December 21, 2022, for the year ended September 30, 2022 ("AIF").

Readers are further cautioned that the list of factors enumerated in the "Risk Factors" section of the AIF that may affect future results is not exhaustive. When relying on the Company's forward-looking statements and information to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements and information contained herein are made as of the date of this document and the Company does not undertake any obligation to update or to revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking statements and information contained herein are expressly qualified by this cautionary statement.

SOURCE Orea Mining Corp.