Brasnova Energy Materials Inc. Announces Assignment of Option on Cuatro Hermanos Project

Vancouver, January 15, 2026 - Brasnova Energy Materials Inc. (TSXV: BEM) ("BEM'' or the "Company") is pleased to announce that the Company has executed a binding agreement (the "Assignment Agreement") assigning the original underlying option agreement over the Cuatro Hermanos Project (the "4H Project"), dated January 16th, 2023 (the "Original Option Agreement"). Under the terms, 4H Copper Holding SAS ("4HCH") agrees to provide all future development financing for the 4H Project and to fund the underlying obligations including an immediate payment of the outstanding obligations under the Original Option Agreement. Brasnova is currently in default under the terms of the Original Option Agreement with the vendors of the 4H Project. The Assignment Agreement sets forth the terms and conditions of the assignment of the Original Option Agreement, as follows:

1. 4HCH will make immediate direct payment on the current outstanding obligations due under the Original Option Agreement (US$200,000) within 10 days of the execution date of the Assignment Agreement.
2. 4HCH will advance US$2.0 million in cash payments to BEM within 24 months of the execution date of the Assignment Agreement, as per the following schedule:
   1. a minimum of US$200,000 in cash payments, will be due within 90 days of the execution date of the Assignment Agreement;
   2. a cumulative minimum of US$1,000,000 in cash payments, will be due within 12 months of the execution date of the Assignment Agreement; and
   3. a cumulative minimum of US$2,000,000 in cash payments, will be due within 24 months of the execution date of the Assignment Agreement.
3. 4HCH will provide all future development financing for the 4H Project and fund the underlying obligations of the Original Option Agreement, including all accrued amounts and all payments due before January 31, 2026.
4. 4HCH will terminate and revert back to BEM, its 100% equity interest in the 4H Project, if it fails to advance the payment for the current outstanding obligations due under the Original Option Agreement or the US$2.0 million in cash payments to BEM within 24 months or fails to fund the underlying obligations of the Original Option Agreement after the execution date of the Assignment Agreement.
5. BEM will initiate the assignment of a 100% equity interest in the 4H Project to 4HCH immediately upon payment of the current outstanding obligations due under the Original Option Agreement.
6. BEM will retain a one percent Net Smelter Royalty on all future production from the 4H Project and any other concessions which may be added to the 4H Project within 10 kilometres of the centre point of the current concessions.

The approximately CA$2,750,000 in cash payments over twenty-four months from this 4H Project assignment transaction will be primarily used by the Company to pay down current loan obligations which as of September 30, 2025 totalled CA$1,606,369.

Further, Brasnova is pleased to welcome back Edward Low as Chief Financial Officer. The Company would like to thank Nancy Zhao for filling this role over the past year. Brasnova will issue Mr. Low 250,000 common share options at a price of 15 cents with a term of five years, subject to approval of the stock option plan at the next AGM. The management changes and options issuance are subject to TSXV Venture Exchange approval.

ABOUT BRASNOVA ENERGY MATERIALS INC.

Brasnova Energy Materials is focused on securing, developing and monetizing Brazilian critical materials assets and related materials technologies, to build shareholder value.

FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements.

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280496