Belo Sun Mining Corp. Wins Appeal: Pará State Agency to Oversee Volta Grande Gold Project Permitting

Belo Sun Mining Corp. is a Canadian gold exploration and development company focused on advancing its Volta Grande Gold Project in Brazil. The company's mission is to develop sustainable mining operations while adhering to environmental and social governance standards.

Belo Sun Mining Corp. ("Belo Sun" or the "Company") (TSX:BSX, OTCQB:BSXGF) has announced a favorable ruling from the Federal Court of Appeals in Brasília (TRF1), which has unanimously determined that the Secretariat of Environment and Sustainability of the State of Pará (SEMAS) will resume responsibility for the environmental permitting process of the Volta Grande Gold Project ("PVG"). This ruling overturns a previous decision from September 2023, which had designated the Federal Brazilian Institute of the Environment (IBAMA) as the competent authority for the project (see press release dated September 12, 2023). The court's written ruling is expected to be published in the coming days.

Background and Implications of the Ruling

Before the September 2023 ruling, SEMAS was the designated authority overseeing PVG's permitting process. The agency had previously granted the project its Preliminary License ("LP") in 2014 and its Construction License ("LI") in 2017. Despite the recent legal challenges, this new decision restores SEMAS's authority and provides continuity to the permitting process, which is viewed as a positive outcome for Belo Sun due to the agency's familiarity and deep understanding of the project.

While the LI remains suspended, the LP was revalidated by SEMAS in 2022 following approval from the Brazilian Federal Agency for Indigenous Affairs (FUNAI) of Belo Sun's Indigenous Study ("ECI"). Moving forward, the immediate focus will be on transferring project files back to SEMAS and working closely with the agency to advance the necessary procedures for project progression.

Positive Outlook for the Project

Ms. Ayesha Hira, Interim President and CEO of Belo Sun, expressed optimism about the ruling, stating:

"We welcome the TRF1 Court ruling confirming SEMAS as the permitting authority for the project, an agency that is already familiar with PVG, and one that has been permitting mining projects in this important mining jurisdiction in Pará State. The Company has had a constructive and transparent relationship with SEMAS, and we look forward to working with the agency to advance the permitting process of PVG, in compliance with all relevant laws and regulations, to the benefit of all stakeholders, in particular the local communities and Indigenous Peoples."

Next Steps

Belo Sun remains committed to advancing the PVG project responsibly and in alignment with environmental and regulatory standards. The company will now focus on collaborating with SEMAS to meet the necessary requirements and ensure compliance with all legal and environmental obligations.

As the project moves forward, stakeholders, including local communities and Indigenous groups, are expected to play an essential role in shaping its development.