Brookmount Gold Announces Significant Operational Progress in Indonesia

Link: https://www.otcmarkets.com/otcapi/company/dns/news/document/79912/content

Brookmount Gold Announces Significant Operational Progress in Indonesia

Reno, Nevada, Jan. 29, 2025 – Brookmount Gold (sic. Brookmount Explorations Inc.) (OTC:

BMXI), a gold exploration and production company, provides an update on the transition and

progress achieved since the official handover earlier this month, at our Indonesia mining

operations. With key changes implemented, the company is on track to enhance productivity and

operational efficiency, while setting the foundation for long-term growth.

Key Updates from On-Site Activities

Mining Operations: Workforce Transition and Optimization: A new contract structure has been

negotiated with 50 workers now in place. Compensation for mineshaft workers has been

simplified to 100,000 Rupiah (US$6.50) per ore bag per worker, replacing the previous profit-

sharing model, which will result in significant cost saving.

Leadership Appointments: A new project manager and shift manager have been appointed,

bringing the operating/management team to seven, at a combined salary of A$5,000 per month

Safety Enhancements: Comprehensive safety protocols have been introduced, including PPE

(hard hats, gloves, boots, and goggles) and shift briefings focused on ore targets, safety

advisories, and feedback.Improved Communication & Monitoring: CCTV systems and two-way radios have been

installed at shaft sites to improve communication and oversight.

Production Update: Mining has commenced, as a test run, at one of our site locations (40-meter

depth), producing 150 bags (7,500 tonnes) of ore in 4 shifts over two days of mining. Initial

results from the test run yielded 200 grams of gold dore, indicating an average grade exceeding 1

gram per bag or 20 grams/tonne;

Expansion Plans: The company plans to deploy two additional hydraulic drills to double

production capacity, compared to using jackhammers, and to improve efficiency.

Processing Enhancements: Ore crushing efficiency is being evaluated with plans to install an

onsite pre-crusher next month, reducing processing time significantly. Existing processing tanks

have sufficient capacity (135 tonnes) to support the target ore throughput of 500 bags/day by

June, yielding 0.5kg of gold dore (approx. 250g of pure gold). Additional ball mills will be

installed in a covered, concreted area to support expanded processing.

Capital Requirements: To support these advancements, Brookmount Gold plans to allocate

initial funding of US$50,000 next week for the immediate purchase of two hydraulic drills and a

sinking fund to cover an onsite crusher. One drill has already been received by the local

distributor and could be in service immediately, a 2nd unit most likely by the following week.

As of December 2, 2024, full operational control was achieved in Indonesia, securing 100% of

cash flow from operations,” stated Nils Ollquist, CEO of Brookmount Gold. “Under the previous

investment agreement, retained cash from unallocated earnings was reinvested, by the joint

venture partner, into expanding gold reserves, upgrading operational assets, and other

applications. This transition ensures the free cross-border flow of cash generated fromoperations, strengthening our funding structure, reducing reliance on external financing, and

minimizing potential dilution for our shareholders. It positions Brookmount Gold to focus on

long-term growth and delivering enhanced value to stakeholders.

“The significant operational progress following the January handover of the Indonesian

operation has placed Brookmount Gold on a clear path to success and growth,” continued Nils

Ollquist, CEO of Brookmount Gold. “This progress aligns with and supports our long-term

strategy of strengthening our operational efficiency, expanding reserves, and maximizing

shareholder value. With this solid foundation, we are well-positioned to deliver sustainable

growth in the years to come.”

What this means for investors.

The recent operational improvements represent a transformative step in Brookmount Gold's

growth strategy. By securing control of 100% of the cash flow generated from operations, the

company is now positioned to reinvest in expanding production capacity, upgrading

infrastructure, and maximizing operational efficiency.

A key aspect of this transition is the establishment of free cross-border flow of funds from

operations. This allows Brookmount Gold to seamlessly transfer earnings from its Indonesian

operations to support global corporate initiatives, enhance liquidity, and fund growth

opportunities across other strategic areas. It ensures greater financial flexibility and efficiency,

which ultimately strengthens the company’s ability to execute on its long-term plans.

For investors, these advancements translate to a stronger financial foundation, reduced reliance

on external financing, minimized dilution risks, and a clearer path to long-term shareholder

value. Brookmount Gold remains committed to transparency and operational excellence as it

continues to unlock the full potential of its Indonesia mining operations.About Brookmount Gold

Founded in 2018, Brookmount Gold is a high-growth gold-producing company quoted on OTC

Markets in the United States (OTC: BMXI). With operating gold mines in Southeast Asia and

exploration and production assets in North America, the company is focused on acquiring and

developing high-quality gold assets with JORC/NI 43-101 verified resources.

Safe Harbor Statements:

Except for the historical information contained herein, certain of the matters discussed in this

communication constitute "forward-looking statements" within the meaning of the Securities

Litigation Reform Act of 1995. Words such as "may," "might," "will," "should," "could,"

"anticipate," "estimate," "expect," "predict," "project," "future," "potential," "intend," "seek to,"

"plan," "assume," "believe," "target," "forecast," "goal," "objective," "continue" or the negative

of such terms or other variations thereof and words and terms of similar substance used in

connection with any discussion of future plans, actions, or events identify forward-looking

statements. These forward-looking statements include, but are not limited to, statements

regarding benefits of the proposed license, expected synergies, anticipated future financial and

operating performance and results, including estimates of growth. There are a number of risks

and uncertainties that could cause actual results to differ materially from the forward-looking

statements included in this communication. For example, the expected timing and likelihood of

completion of the pending transaction, including the timing, receipt and terms and conditions of

any required governmental and regulatory approvals of the pending transaction that could reduce

anticipated benefits or cause the parties to abandon the transaction, the ability to successfully

integrate the businesses, the occurrence of any event, change or other circumstance that could

give rise to the termination of the negotiations, the risk that the parties may not be able to satisfy

the conditions to the proposed transaction in a timely manner or at all, risks related to disruption

of management time from ongoing business operations due to the proposed transaction, the risk

that any announcements relating to the proposed transaction could have adverse effects on the

market price of Brookmount's common stock. All such factors are difficult to predict and are

beyond our control. We disclaim and do not undertake any obligation to update or revise any

forward-looking statement in this report, except as required by applicable law or regulations.

Investor Relations Contact: ir@bmxigold.com

Website: https://www.brookmountgold.com/Corporate Contact: corporate@brookmountgold.com

Social Links: Brookmount Gold X (Former Twitter): https://x.com/brookmountgold