Almaden to submit arguments challenging Economia court submissions

Almaden Minerals has recently learnt that Mexico’s Ministry of the Economy has made a submission to the second district court in Puebla State to deny the two mineral title applications which were first made by Almaden in 2002 and 2008, and which in turn led to the grant of mineral titles in 2003 and 2009, respectively. These mineral titles underpin the Ixtaca deposit which was discovered by Almaden in 2010. As previously reported, these mineral titles were reduced to application status as a result of an early 2022 decision of Mexico’s Supreme Court of Justice. The District Court is implementing the SCJN decision. Almaden believes that this action by Economia is inconsistent with the Mexican Mining Law, the SCJN decision, and international law. The Company expects to submit arguments challenging Economia’s submissions to the District Court within the next few days. Further legal action is currently being studied. By way of background, Almaden’s mineral claims covering the Ixtaca project were used as the basis of a lawsuit by a third party against the Mexican government asserting that the Mexican mining law is unconstitutional. In February, 2022, the SCJN ruled that Mexico’s mineral title law is constitutional, but that before issuing Almaden’s mineral titles in 2003 and 2009, Economia should have provided for a consultation procedure with relevant indigenous communities. In April, 2022, the SCJN provided additional detail regarding the procedures required to be followed by the Mexican government in the performance of indigenous consultation prior to the grant of mineral claims. The SCJN also clarified that the Company’s original claim applications were submitted pursuant to the legal framework in force at the time and that Almaden’s mineral rights at the Ixtaca project were safeguarded while the mining authorities comply with the SCJN decision. In July 2022, the Company announced that, as required by the SCJN, Economia had notified Almaden that the Company’s mineral titles relating to the Ixtaca project were "ineffective". The Company understood this to mean that the mineral title reverted to application status, and that these applications preserve the mineral rights for Almaden but do not allow the Company to engage in exploration, until such time as Economia completes its court-ordered indigenous consultation in the area covered by the mineral title applications. The Company has now received notice that Economia has reviewed the original claim applications on file and resolved, despite acting to the contrary in 2003 and 2009, that the applications contain technical faults which preclude the grant of the mineral claims. Economia is therefore seeking to deny the grant of the mineral claims prior to engaging in the indigenous consultation ordered by the SCJN. Economia’s resolution has not yet been accepted by the District Court. Almaden will continue to support the indigenous consultation mandated by the SCJN and assert its rights as appropriate.