Rhyolite Resources Terminates Brothers Property Option Agreement

Vancouver, British Columbia--(Newsfile Corp. - January 3, 2025) - Rhyolite Resources Ltd. (TSXV: RYE) ("Rhyolite" or the "Company") has terminated its option to earn an 80% interest in the Brothers property in Suriname.

The Company received US$62,000 for agreeing to the termination. The Exploitation License for the Brothers project was scheduled for renewal in December 2022 at which time Rhyolite ceased all expenditures on the property until Property title was secure. The property vendors have now informed Rhyolite that the Brothers Exploitation License has been renewed and under the terms of the option agreement Rhyolite had 18 months to complete US$3.5 million in exploration expenditures including 10,000 meters of drilling and pay US$400,000 cash to earn a conditional 60% interest or an unconditional 49% interest. Discussions with the property vendors on amending the original agreement to reflect the exploration results to date proved unsuccessful. The details of the joint venture and earn-in agreements were described in the Rhyolite press release dated October 13, 2020.

The Company currently has approximately $6.5 million (Canadian) in working capital and holds a 10% Gross Revenue Royalty payable by any party the uses the Muckahi Mining System up to proceeds to Rhyolite of C$10 million. Rather than the conventional approach of using rubber-tired equipment that operates on the floor of tunnels, the Muckahi Mining System uses equipment that operates on an overhead monorail to excavate tunnels and perform all transport functions.

Qualified Person

Richard Graham, P.Geo, the CEO of Rhyolite, is a Qualified Person (QP) under National Instrument 43-101 "Standards of Disclosure for Mineral Projects" and has approved the technical information contained in this news release. Mr. Graham is not considered to be independent for the purposes of National Instrument 43-101.

Forward-Looking Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive regulatory approvals; the ability to attract financing on these terms or at all; the price of commodities; and the results of current exploration. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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