Collective Mining To Buy Remaining Land For Colombia Project In $44M Deal

Collective Mining Ltd. (NYSE:CNL) (TSX:CNL) ("Collective" or the "Company") is pleased to announce the execution of final binding purchase agreements ("BPAs") with several arms-length vendors ("Vendors") for the Company to acquire the remaining surface rights needed for a future mining operation at the Guayabales Project, located in Caldas, Colombia. Collective also holds the mineral titles, or options to acquire the mineral titles, over all areas where surface titles have been, or are being acquired for future mine development.

Ari Sussman, Executive Chairman, commented: "Completing the acquisition of all surface land required for a future mining scenario at our Guayabales Project is a major step towards realizing our vision of developing a major critical mineral mining operation in Colombia. We envision a future mine for the Apollo System, which is a polymetallic deposit enriched in gold, copper, tungsten, and silver, that will be modern, have a modest surficial footprint, and will adhere to the highest standards of environmental stewardship. The future mine will benefit immensely from robust infrastructure as it will be located next to the Pan-American Highway and hydropower lines and have access to readily available skilled labor from our established mining region in Caldas. Purchasing surface titles in Colombia is never easy given the fragmented nature of land ownership, so I would like to congratulate our team for immensely derisking the project in a swift and thorough manner."

Terms of the Final Pieces of Land Being Acquired

Under the terms of the recently executed binding purchase agreements, Collective Mining will acquire land for a total purchase price of US$44.0 million, to be paid in installments over a 5-year period as follows:

• US$8.7 million in 2026, upon execution the BPAs
• US$10.0 million in 2027
• US$8.5 million in 2028
• US$8.4 million in 2029
• US$8.4 million in 2030

Other relevant conditions of the BPAs include interest on certain future payments at 6% per annum and promissory notes to ensure compliance of payments and mortgages over the acquired surface rights. In the event that Collective receives approval from the relevant environmental agency for a mining operation and elects to begin construction prior to completing the final installments, certain outstanding installment payments shall become immediately due prior to the commencement of major mine construction activities.

Plans for an Exploration Adit

With all the surface titles required for a future mine now either owned or under BPA's, the Company plans to commence construction of an exploration adit in Q4 2026. The exploration adit, which will be used to support the Company's geological understanding of the Guayabales Project from underground, will initially be used to construct underground drill chambers to test the Trap System ("Trap"). Trap, which was discovered in 2022 through surface drilling has been sparsely drilled along a 1.4-kilometer mineralized corridor enriched by gold and silver sheeted veinlets. With underground access, the Company will soon be able to advance Trap's exploration potential in an expedited manner as opposed to drilling it solely from challenging steep topography.

The Company will immediately begin all relevant preparation work for the exploration adit, including but not limited to, contractor selection, detailed engineering and surface work. In addition to providing the Company with underground drilling access, the exploration adit will greatly enhance the Company's ability to advance the project's geotechnical and hydrological characterization and will provide access for the future collection of metallurgical bulk samples. The enhanced data and information collected from the exploration adit will be crucial in supporting future scoping and feasibility studies.