South Pacific Metals Identifies Additional Large Copper-Gold Target at Osena Project, Papua New Guinea

Data Review Now Shows Cluster of Five Large-Scale Copper-Gold Targets Across 5 Km x 3 Km Expanded Ontenu Prospect

Vancouver, October 16, 2024 - South Pacific Metals Corp. (TSXV: SPMC) (OTCQB: SPMEF) (FSE: 6J00) ("SPMC" or the "Company"), an emerging gold-copper exploration company operating across Papua New Guinea, is pleased to announce another significant Copper-Gold intrusive target has now been identified at the Ontenu Cu-Au Prospect. The new target, Ontenu Northeast is now the fifth large-scale target discovered within an expanded 5 km by 3 km mineralized area, located along strike in the Kainantu Transfer Zone adjacent to K92 Mining's tenement (see Figures 1 & 2).

Highlights:

• Newly identified Ontenu Northeast target - geophysical and geochemical target indicating a mineralized intrusive is present. Historical data review also reveals this area was first sampled in 1985 by Renison Goldfields Consolidated ("RGC") who determined to likely host lode-gold style mineralization (consistent with what K92 is now mining);

• Target footprint expansion - with at least five highly-prospective geophysical targets with coincident surface Cu-Au anomalies, Ontenu now represents a large-scale, multi-intrusive Copper-Gold porphyry, vein and skarn complex extending over 5 km x 3 km;

• Confirmed gold-bearing breccias - recent results from Ontenu Central include 79 m averaging 0.75 g/t Au, including 4 m at 4.52 g/t Au and individual samples up to 8.82 g/t Au;

• Significant historical rock samples targeted for on-the-ground follow-up including surface samples that returned 73 g/t Au, 960 g/t Ag, 3.17% Cu & 10.6% Zn (in different locations); and

• Exploration program being prepared for execution in Q4, 2024, along with 3D geological and structural modeling to assist with drill planning efforts.

"Following a comprehensive review of historic and recent exploration data, Ontenu has quickly emerged as a very exciting prospect in the Kainantu District," said Cathy Fitzgerald, President and Chief Geologist. "Our integration and validation of historic data from previous explorers, along with contemporary analysis of geophysics, geological and alteration mapping and surface sampling, demonstrates what may be an extensive gold-copper mineralized intrusive-hydrothermal system. We are excited to get boots-on-the-ground here at Ontenu, and are looking forward to near-term results of a 3D geological and geophysical modeling exercise and drill planning."

The Ontenu Cu-Au Prospect (see Figure 1) is located within a major NE-SW striking district-scale, Cu-Au mineralized structural corridor known as the Kainantu Transfer Zone (KTZ). The KTZ is an inferred deep transform fault, one of several across Papua New Guinea, which are interpreted to form key conduits focusing fluid flow and mineralisation. The nearby Kainantu Gold Mine (K92 Mining) lies within this zone and is an intermediate sulfidation epithermal and mesothermal gold-copper system that is believed to be sourced from a significant intrusion related, porphyry-style system at depth or nearby (see Figure 2).

Figure 1: Ontenu Cu-Au Prospect Area - a 5 km by 3 km region hosting multiple large-scale, multi-intrusive Copper-Gold targets. Image shows at least five coincident apparent conductivity / magnetic geophysical anomalies in an ideal structural setting.

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Ontenu Cu-Au Prospect: Multiple Targets and Deposit Styles

A recent comprehensive review of all historic and recent exploration data at Ontenu, which represents only a small proportion of SPMC's total Osena Project landholding, has defined a large-scale, cluster of at least five intrusive Cu-Au targets in an overall intrusion complex greater than 5 km x 3 km. These are located within an area of intersection of arc-parallel faults and unconformities, with northeast trending cross-faults that parallel the KTZ. This is the structural setting of many producing deposits in PNG, including the Kainantu Gold Mine.

• Ontenu Northeast: Visible gold identified in stream sampling from 1985, draining this topographic high that is also a coincident apparent conductivity-magnetic geophysical anomaly. Historic work by RGC identified phyllic and propylitic alteration proximal to this feature and completed limited soil sampling returning anomalous Au and Cu. They interpreted the area to be prospective for lode-gold type mineralization (they were pursuing bulk-style gold only). This is a top-priority prospect;

• Ontenu Central: Classically zoned porphyry system with widespread propylitic to advanced argillic (with narrow structural zones of potassic alteration associated with hydrothermal breccias and bornite (copper sulphides)). This is suggestive that Ontenu is at the top of a preserved major porphyry system with a large Cu-Au porphyry target at depth (approximately 250 m below surface):

  • Associated with historic surface assays up to 73 g/t Au, 960 g/t Ag, 3.17% Cu & 10.6% Zn and 79m averaging 0.75 g/t Au including 16 m averaging 1.25 g/t Au in surface trenching;

  • Strong coincident apparent conductivity and magnetic geophysical anomaly with a 700 m x 600 m footprint indicating a major accumulation of sulphide at >250m depth (porphyry Cu-Au target);

  • Encouraging historic drilling returned intercepts such as 100m @ 0.32 g/t Au and 0.1% Cu from 14m downhole;

• Ontenu North: Strong coincident apparent conductivity-magnetic anomaly with 900 m x 900 m footprint with Au in soils anomaly from historic data up to 130 ppb Au;

• Ontenu Northwest: Strong coincident apparent conductivity-magnetic anomaly with 800 m x 600 m footprint with Au in soil anomaly from historic data up to 130 ppb Au; and

• Ontenu West: Strong apparent conductivity anomaly with 700x600m footprint, largely unsampled.

Exploration Potential and Planning

In addition to hosting confirmed gold-bearing breccias and outcropping bornite, covellite and chalcopyrite in stockwork veined diorite, there is strong potential to host multiple other styles of mineralization across the Ontenu Prospect area including:

• Epithermal vein Au-Cu-Zn intermediate sulfidation systems analogous to veins currently being mined at the adjacent Kainantu Gold Mine (K92 Mining Ltd);

• Au-Bi-Te alkalic epithermal systems analogous to the world-class Porgera Gold Mine (Porgera JV/Barrick Gold Corp.) located in the Western Highlands of PNG; and

• Ag-Pb-Zn rich low-sulfidation skarn associated with limestones and metasediments.

The Company is currently designing its next field program to further investigate many of these recently identified anomalies it believes hold the greatest economic potential in the Ontenu area. Ontenu NE will be a priority. 3D geological and structural modeling to assist with drill planning efforts are also now underway. The Company maintains ongoing engagement with local communities ahead on further on-ground work in this area.

Figure 2: Ontenu Cu-Au Prospect - the highly mineralized, broader Kainantu Mineral District.

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About the Osena Project

Covering 626 km² of strategic ground, the Osena Project is located southwest of and adjacent to K92's tenements that host the Kainantu Gold Mine. Priority prospects include Ontenu, a copper-gold porphyry and epigenetic gold prospect with exposed porphyritic diorite intrusive phases hosting supergene copper minerals and overprinted by a later gold mineralized event associated. The Ontenu Prospect is one of many occurring within a highly mineralized corridor that extends more than 40 km northeast across the Kainantu District.

Quality Assurance and Quality Control

The Ontenu Project area was acquired by Kainantu Resources Ltd., (now South Pacific Metals Corp) in 2020. Since that time the Company has completed two surface sampling programs (soil, rock, trenching) at the Ontenu Prospect area and completed a Mobile magnetotellurics (Mobile MT) geophysical survey. Trenching and soil results from a 2023 work program was reported in the release 27 August 2024 as was associated QA/QC information. Results from the 2022 sampling program were disclosed 3 March 2023. Details on the Mobile MT geophysical survey were released by the Company on 9 June 2022.

The historic data presented in this release is compiled from statutory reports filed with the Mineral Resources Authority of PNG by both RGC Ltd and Barrick Gold. In these reports the laboratory, QA/QC and sample collection details are provided with minimal detail. These data are considered historic and cannot necessarily be verified and will not be used in future resource estimation work. However, the Company's own work including trenching, and soil sampling (partly overlapping Barrick soil samples) along with mapping of alteration styles and mineralisation provides strong supporting evidence that the historic information provided in this report is reasonable. Further, some historic samples have been re-sampled with results verified by the Company (see news release 3 March 2023).

Corporate Update

Further to the Company's press release dated September 5, 2024, regarding an investor relations consulting agreement (the "Consulting Agreement") with Zinger Ventures Inc. (the "Consultant"), the Company has amended the vesting of the Consultant's 150,000 stock options (the "Options") at an exercise price of $0.60 per share. The Options will vest in stages over a 12-month period with 50,000 Options vesting on the grant date (September 4, 2024), 25,000 Options vesting on March 4, 2025, 37,500 Options vesting on June 4, 2025, and 37,500 Options vesting on September 4, 2025.Also, the Consultant will not exercise more then 37,500 Options prior to December 4, 2024.

Qualified Person

The scientific and technical information disclosed in this release has been compiled by Company geologists reviewed and approved by Darren Holden, Ph.D., FAusIMM, a "Qualified Person" as defined under the Canadian Institute of Mining National Instrument 43-101, 2014 Standards of Disclosure for Mineral Projects. Dr. Holden is a Technical Advisor to the Company.

About South Pacific Metals Corp.

South Pacific Metals Corp is an emerging gold-copper exploration company operating in the heart of Papua New Guinea's proven gold and copper production corridors. With an expansive 3,000 km² land package and four transformative gold-copper projects contiguous with major producers K92 Mining, PanAust and neighbouring Barrick/Zijin, new leadership and experienced in-country teams are prioritizing thoughtful and rigorous technical programs focused on boots-on-the-ground exploration to prioritize discovery across its portfolio projects: Anga, Osena, Kili Teke and May River.

Immediately flanking K92's active drilling and gold producing operations to the northeast and southwest, SPMC's Anga and Osena Projects are located within the high-grade Kainantu Gold District - each having the potential to host similar-style lode-gold and porphyry copper-gold mineralization as that present within K92's tenements. Kili Teke is an advanced exploration project situated only 40 km from the world-class Porgera Gold Mine and hosts an existing Inferred Mineral Resource with multiple opportunities for expansion and further discovery. The May River Project is located adjacent to the world-renowned Frieda River copper-gold project, with historical drilling indicating potential for a significant, untapped-gold mineralized system. SPMC common shares are listed on the TSX Venture Exchange (TSXV: SPMC), the OTCQB Marketplace (OTCQB: SPMEF) and Frankfurt Stock Exchange (FSE: 6J00).

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

Disclaimer and Forward-Looking Information

Statements contained in this release that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of SPMC. In making the forward-looking statements, SPMC has applied certain assumptions that are based on information available to the Company, including SPMC's strategic plan for the near and mid-term. There is no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements may involve various risks and uncertainty affecting the business of the Company. These forward-looking statements can generally be identified as such because of the context of the statements, including such words as "believes", "anticipates", "expects", "plans", "may", "estimates", or words of a similar nature. Forward-looking statements or information in this news release relate to, among other things: formulation of plans for drill testing; and the success related to any future exploration or development programs. These forward-looking statements and information reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic, regulatory or other unforeseen uncertainties and contingencies. These assumptions include, without limitation: success of the Company's projects, prices for metals remaining as estimated, currency exchange rates remaining as estimated, availability of funds for the Company's projects, capital, decommissioning and reclamation estimates, prices for energy inputs, labour, materials, supplies and services (including transportation), no labour-related disruptions, no unplanned delays or interruptions in scheduled construction and production, all necessary permits, licenses and regulatory approvals are received in a timely manner, and the ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive. The Company cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors. Accordingly, readers should not place undue reliance on forward-looking information. Such factors include, without limitation: fluctuations in gold prices, fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation), fluctuations in currency markets (such as the Canadian dollar versus the U.S. dollar), operational risks and hazards inherent with the business of mineral exploration, inadequate insurance, or inability to obtain insurance, to cover these risks and hazards, the Company's ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner, changes in laws, regulations and government practices, including environmental, export and import laws and regulations, legal restrictions relating to mineral exploration, increased competition in the mining industry for equipment and qualified personnel, the availability of additional capital, title matters and the additional risks identified in the Company's filings with Canadian securities regulators on SEDAR+ (available at www.sedarplus.ca). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described, or intended. Investors are cautioned against undue reliance on forward-looking statements or information. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company's property.

Appendix 1

Table 1: Ontenu rock sampling results (historic and SPMC combined) (WGS84 Zone 55) >0.5g/t ordered by grade (Au).

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