Baru Gold Corporation informed stakeholders and investors on the signing of a Memorandum of Understanding (MoU) that includes both financial and operational terms with mine contractor CV. Mahamu Hebat Sejahtera (the "Contractor"). The Contractor is a resident of Sangihe Island with previous mining experience. The terms of the MoU state that the Contractor will pay the Company approximately CAD 6 million over three months. In exchange, the Company grants the right to the Contractor to operate and produce gold for 5 years on 65 of the 42,000 ha within the Company's Contract of Work area. On receipt of funds, the Company will license to the Contractor, a previously operating gold mine. The Contractor will manage and expand this operation, and fund all additional costs related to staffing, land acquisition, construction of the mining pit, heap leach pads, and reclamation. As the
operations were previously producing gold, the time necessary to produce cash flow will be shortened considerably. Under the terms of the MoU, the Contractor will receive 65% of the total gold recovered, and the Company will retain 35%. This agreement does not prevent the Company from opening additional worksites within the Contract of Work area. The Company retains control of the Sangihe Project and will oversee and supervise all operations led by the Contractor. The Contractor must abide by the same environmental
and reclamation standards required of the Company by Indonesian law. The Company and Contractor are currently negotiating terms of the operating agreement, which may
be subject to mutually agreed to changes from the MoU. The current negotiations have been productive, and the parties look forward to a conclusion being reached. All due diligence, by both
parties, has been completed.