Mineral Resources Report for the Mariela Project: Sophia Deposit in Accordance with JORC 2012

The Mariela Phosphate Project, located in the Antofagasta Region of northern Chile, has reached a significant milestone with the release of the Mineral Resources Report for the Sophia Deposit, prepared in strict compliance with the JORC 2012 Code. This technical evaluation strengthens the development potential of the phosphate deposit and reinforces BIFOX’s commitment to international best practices in mineral exploration and resource classification.

3D Ore zone od Apatite (green color) Modeling considering grade shell 5% of P2O5.

The report was signed by geologist Marcelo Antonio Batelochi, a Chartered Professional and accredited member of the Australasian Institute of Mining and Metallurgy (AusIMM). In his official statement, Mr. Batelochi confirmed his status as a Competent Person under the JORC 2012 Code, meeting all relevant professional experience requirements and declaring no financial interest in the project.

Scope of the Technical Report
The updated Mineral Resources Report was prepared by MB Soluções em Geologia e Mineração Ltda, commissioned by Fosfatos de Taltal SpA – BIFOX Limited, to reassess the Sophia Mine within the Mariela Project. The scope of the assessment included:

• Review of historical geological and technical data
• Geological mapping and sampling
• Geophysical and topographic surveys
• Metallurgical testing
• Mineral resource estimation through modern modeling and statistical methodologies

Historical Background of the Sophia Project

The Sophia Deposit operated for over two decades as a small-scale underground phosphate mine under Minera Formas, producing approximately 48,000 tonnes annually of beneficiated phosphate rock with P₂O₅ concentrations ranging between 30% and 70%.

Prior to 2008, exploration efforts didn’t adhere to modern industry standards. However, between 2008 and 2009, SRK Consulting (Chile and USA) conducted a structured exploration campaign under both JORC and NI 43-101 protocols. This included geological mapping, geophysics, 38 HQ drill holes, five trenches, and a QA/QC program aligned with ISO 9000 standards.

Results and Estimates

The historical report prepared by Minera Formas (2009) estimated a global resource of approximately:

• 1.692 billion tonnes at 20% P₂O₅, or
• 1.128 billion tonnes at 30% P₂O₅

These estimates were based on surface mapping, phosphate alteration zones, and a specific gravity of 3.00 g/cm³. However, SRK concluded that at the time, the project didn’t meet economic production criteria, and therefore no official JORC-compliant resources were published.

As per the latest report (Report Date: January 10, 2025 | Effective Date: January 17, 2025), the inferred mineral resources for the Sophia Deposit, using a 5% P₂O₅ cut-off grade, were updated. [Insert updated inferred resource table or figures here once available.]

Legal Framework and Mining Rights in Chile

The Mariela Project operates under a strong and transparent legal framework based on the Chilean Constitution and Mining Code. Key elements include:

• State ownership of mineral resources, with concessions granted to private parties for exploration and exploitation.
• Exploration concessions valid for four years (renewable for two additional years).
• Exploitation concessions of indefinite duration.
• Mandatory environmental approval via the SEIA (Environmental Impact Assessment System).
• Indigenous consultation and local community engagement obligations.
• Foreign investment protections with legal guarantees and arbitration options.

Irrevocable Purchase Option Agreement

Fosfatos de Taltal SpA holds an irrevocable option to acquire the project rights for USD 10.5 million before October 13, 2024. During this option period, exploration activities are permitted. The agreement provides legal and environmental certainty, confidentiality of terms, and dispute resolution through arbitration under the Santiago Chamber of Commerce.

The Mariela Phosphate Project stands as a strategic asset for the phosphate market in Latin America, with significant technical progress and a robust legal framework. The release of the Sophia Deposit Mineral Resources Report in accordance with JORC 2012 reinforces BIFOX’s leadership in the responsible development of phosphate deposits in Chile.