South Pacific Metals Reports Exceptional Surface Trenching Results at Osena Gold-Copper Project, Including 8.82g/t Gold Sample at Ontenu Prospect, Kainantu District

Assays Confirm Mineralization Across Entire 79 m trench, Including 4 m Averaging 4.52g/t Au

VANCOUVER, BC / ACCESSWIRE / August 27, 2024 / South Pacific Metals Corp. (TSXV:SPMC, Financial)(FSE:6J00) ("SPMC" or the "Company"), an emerging gold-copper exploration company operating in the heart of Papua New Guinea's proven production corridors, is pleased to announce initial assay results from its Osena Gold-Copper Project surface exploration program, completed September 2023 at the Ontenu Prospect and surrounding areas.

Highlights:

• Trench 1 returned significant results including a peak trench rock sample value of 8.82 g/t Au, 13.8 g/t Ag, 0.25% Cu, 580 ppm Mo, 0.93% Zn.

  • 79 m averaging 0.75 g/t Au, 981 ppm Cu, 1.73 g/t Ag, 1877 ppm Zn, including:

    • 16 m averaging 1.25 g/t Au, 0.15% Cu, 0.18% Zn; and

    • 4 m averaging 4.52 g/t Au, 0.13% Cu, 0.23% Zn.

• Trench 1 mineralization occurs across the entire 79 m trench and is expected to extend to the east and west over more than 200 m width.

• Regional rock samples returned up to 2.69 g/t Au, 71.3 g/t Ag, 0.26% Cu, 5.3% Zn.

• The Ontenu Prospect is part of an interpreted multi-intrusive, large-scale gold-copper porphyry system spanning an area of at least 2.5 km by 1 km. Metal signatures (Au-Te-Bi) in assayed soils and rocks suggest a later metal-bearing event overprinting an earlier porphyry Cu-Au-Mo event, similar to that observed at other major deposits such as at the Kainantu and Porgera Mines.

"We are thrilled to see Ontenu results as high as 8.82 g/t gold within a broad alteration halo, confirming the significance of this prospect that remains open in all directions," commented Cathy Fitzgerald, President and Chief Geologist. "We are also highly encouraged by the continuity of gold mineralization found in Trench 1 assays, demonstrating excellent gold endowment potential that bodes well for future exploration efforts. These results, along with Ontenu's location at the southwestern end of the Kainantu Transfer Zone, make this a high-priority prospect for the Company. A comprehensive review of all historical and modern data for the Ontenu Prospect and broader area is underway, with the aim to fully characterize the scale and size of this mineralized system, identify additional targets and inform further exploration."

Ontenu Prospect Exploration Program

From July to September 2023, the Company (then operating as Kainantu Resources Ltd. under previous management), conducted surface sampling and detailed geological, alteration and structural mapping over the core area of the Ontenu Prospect. A total of 118 reconnaissance rock samples, 150 trench samples from five trenches and 116 soil samples were collected and secured in storage until being sent for assay this year (see news release dated July 3, 2024). These samples have now been assayed by Intertek Laboratory, Port Moresby, Papua New Guinea, with preliminary results discussed in this news release.

Initial Surface Trenching Results

The Company interprets that the Ontenu Prospect at surface is the upper part of a significant gold-copper porphyry system.

Trench 1 is a 79 m long, east-west oriented channel excavated to a depth of 1 to 1.5 metres (see Figure 1). This trench targeted an area associated with high tenor gold in soils (between 80-360 ppb Au) over a line-length of 260 m. The exposed rocks in the trench revealed weathered gossanous material and was mapped as a combination of microdiorite, diorite porphyry and diorite breccia. The trench was oriented E-W and is proximal to mapped silica ledges and feldspar-hornblende porphyries intruding the sampled microdiorite. Stockwork veins and gossanous material (iron oxides from weathering of sulphide material) were mapped in the trench. The area has not been previously drilled, and based on regional interpretation, may link along a WNW-ESE striking structural corridor to a gold-in-soil anomaly (80 to 210ppb Au) located 300m to the ESE. The area to the north (and northwest) of Trench 1 has not yet been soil sampled by the Company. Further, many rock samples peripheral to Ontenu's core area returned high grade results that warrant following: Regional rock samples returned up to 2.69 g/t Au, 71.3 g/t Ag, 0.26 %Cu, and 5.3 %Zn.

Soil sampling was designed to complement two soil lines previously collected by the Company in 2022 (see news release dated March 23, 2023). Soils were collected at a nominal 50 m spacing along E-W lines with 100 metres spacing between lines. Nearly the entire area sampled, over 1 km by 800 m has highly anomalous gold in soils. The peak soil assay result returned was 1,560 ppb Au (1.56 g/t Au). As evidenced by high tenor gold in soils on the last lines of the soil survey, the soil anomaly is likely to continue farther to the west, north and south of the current area sampled.

The Company anticipates reporting full results, including review and interpretation of all assays and historical data in September 2024.

Figure 1: Ontenu Porphyry Prospect Geology and Recent Soil and Rock Results

Figure 2: Ontenu Porphyry Prospect Trench 1 Gold Assay Results

About the Osena Project

Covering 626 km² of strategic ground, the Osena Project is located southwest of and adjacent to K92's tenements that host the Kainantu Gold Mine. Priority prospects include Ontenu, a porphyry copper-gold and epigenetic gold prospect with exposed porphyritic diorite intrusive phases hosting supergene copper minerals, and overprinted by a later gold mineralized event associated. The Ontenu Prospect is one of many occurring within a highly mineralized corridor that extends more than 40 km northeast across the Kainantu District.

Figure 3: Osena Project Location in the Kainantu Gold District

Quality Assurance and Quality Control

All Ontenu samples were collected under previous management, with the samples securely stored in the Kainantu office of the Company for the past year, prior to being sent to the laboratory for assaying.

Trenching and Rock Sampling

Trench samples are collected from a hand-excavated trench to a depth of approximately 1 m. The trench wall and floor is mapped and a representative sample is collected each metre along the length of the trench. Rock samples are collected from in-situ outcrops during reconnaissance work.

Trench and rock samples were sent to the ITS (PNG) Ltd (Intertek) Laboratory in Port Moresby. Gold assays were conducted using 30 g charge Fire Assay with Atomic Absorption Spectra finish (Intertek Code FA25/OES), with a detection limit of 0.01ppm. Samples >1 ppm (1 g/t) Au were re-assayed as a check with no significant difference noted.

Multi-element assays were determined using 4-acid digestion with Induced Coupled Mass-Spectrometry (ICPMS) (Intertek code 4A/MS48). Certified reference material, duplicates and blanks were inserted into the sample stream to monitor laboratory performance, with no significant variations from expected results.

Soil Sampling

Soil sampling involves sieving a c-horizon soil to a <2 mm in the field with the sample secured on site before being staged. Soil samples were sent to the ITS (PNG) Ltd (Intertek) Laboratory in Port Moresby for assay. Assaying for gold and other elements is determined by aqua regia digestion with a mass-spectrometry finish (Intertek code AR01/MS). Certified Reference Material, duplicates and blanks are inserted in the sample stream to monitor laboratory performance.

Qualified Person

The scientific and technical information disclosed in this release has been compiled by Company geologists reviewed and approved by Darren Holden, Ph.D., FAusIMM, a "Qualified Person" as defined under the Canadian Institute of Mining National Instrument 43-101, 2014 Standards of Disclosure for Mineral Projects. Dr. Holden is a Technical Advisor to the Company.

About South Pacific Metals Corp.

South Pacific Metals Corp ("SPMC") is an emerging gold-copper exploration company operating in the heart of Papua New Guinea's proven gold and copper production corridors. With an expansive 3,000 km² land package and four transformative gold-copper projects contiguous with major producers K92 Mining, PanAust and neighbouring Barrick Gold, new leadership and experienced in-country teams are prioritizing thoughtful and rigorous technical programs focused on boots-on-the-ground exploration to prioritize discovery across its portfolio projects: Anga, Osena, Kili Teke and May River.

Immediately flanking K92's active drilling and gold producing operations to the northeast and southwest, SPMC's Anga and Osena Projects are located within the high-grade Kainantu Gold District - each having the potential to host similar-style lode-gold and porphyry copper-gold mineralization as that present within K92's tenements. Kili Teke is an advanced exploration project situated only 40 km from the world-class Porgera Gold Mine and hosts an existing Inferred Mineral Resource with multiple opportunities for expansion and further discovery. The May River Project is located adjacent to the world-renowned Frieda River copper-gold project, with historical drilling indicating potential for a significant, untapped-gold mineralized system. SPMC common shares are listed on the TSX Venture Exchange (TSX.V: SPMC) and Frankfurt Stock Exchange (FSE: 6J00).

For further information please contact:

Michael Murphy, Executive Chairman and CEO
South Pacific Metals Corp.
Tel: +1 604-428-6128
Email: [email protected]

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer and Forward-Looking Information

Statements contained in this release that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of SPMC. In making the forward-looking statements, SPMC has applied certain assumptions that are based on information available to the Company, including SPMC's strategic plan for the near and mid-term. There is no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements may involve various risks and uncertainty affecting the business of the Company. These forward-looking statements can generally be identified as such because of the context of the statements, including such words as "believes", "anticipates", "expects", "plans", "may", "estimates", or words of a similar nature. Forward-looking statements or information in this news release relate to, among other things: formulation of plans for drill testing; and the success related to any future exploration or development programs. These forward-looking statements and information reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic, regulatory or other unforeseen uncertainties and contingencies. These assumptions include, without limitation: success of the Company's projects, prices for metals remaining as estimated, currency exchange rates remaining as estimated, availability of funds for the Company's projects, capital, decommissioning and reclamation estimates, prices for energy inputs, labour, materials, supplies and services (including transportation), no labour-related disruptions, no unplanned delays or interruptions in scheduled construction and production, all necessary permits, licenses and regulatory approvals are received in a timely manner, and the ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive. The Company cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors. Accordingly, readers should not place undue reliance on forward-looking information. Such factors include, without limitation: fluctuations in gold prices, fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation), fluctuations in currency markets (such as the Canadian dollar versus the U.S. dollar), operational risks and hazards inherent with the business of mineral exploration, inadequate insurance, or inability to obtain insurance, to cover these risks and hazards, the Company's ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner, changes in laws, regulations and government practices, including environmental, export and import laws and regulations, legal restrictions relating to mineral exploration, increased competition in the mining industry for equipment and qualified personnel, the availability of additional capital, title matters and the additional risks identified in the Company's filings with Canadian securities regulators on SEDAR+ (available at www.sedarplus.ca). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described, or intended. Investors are cautioned against undue reliance on forward-looking statements or information. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company's property.

Appendix 1

Table 1: Results from Trench 1 (coordinates WGS84 UTM Zone 55)

Table 2: New Rock chip results of Au >0.1g/t Au, and/or Cu >1000ppm (coordinates WGS84 UTM z55)

SOURCE: South Pacific Metals Corp.