Chief Prosecutor Declares Sangihe Priority for Illegal Mining Enforcement; Prosecutorial Action Intensifies

(TheNewswire)

Baru Gold Corp. (BARU: TSX.V | BARUF: OTCQB) ("Baru" or the "Company") and its subsidiary PT. Tambang Mas Sangihe ("TMS" or the "Company") are pleased to inform shareholders that the Chief Prosecutor of North Sulawesi has designated Sangihe Island a priority target for enforcement of illegal mining following a failed, large-scale mobilisation by illegal miners. 

Failed Illegal Mining Mobilisation:

From November 5, 2025, to May 18, 2026, Sangihe Island experienced a resurgence of illegal mining. The mobilisation was undertaken and supervised by foreign nationals, with support from Indonesians from outside Sangihe and local day labourers. All illegal operations have since ceased.

Until this recent attempted mobilisation, there has not been significant illegal mining on Sangihe since November 2024.

The mobilisation of equipment was larger and more aggressive than the Company has ever seen. 

The foreign nationals were using over 20 excavators to build and prepare processing facilities capable of producing approximately $20 million CAD every 60 days. The work was being undertaken in the exclusive mining concession of the Company under the false pretence of a local cooperative mine. 

Unfortunately, the failed mobilisation destroyed an additional section of protected forest and area of mangroves. Tragically, a local Sangihe resident also died while improperly transporting cyanide, a reagent used in gold processing. So far, at least four Sangihe residents have died undertaking illegal gold mining on Sangihe Island. 

Company management estimate the failed mobilisation resulted in a net loss of approximately $3.5 million CAD to the illegal miners.

Enforcement Developments:

The Chief Prosecutor of North Sulawesi, Jacob Hendrik Pattipeilohy, visited Sangihe Island and toured the illegal mining site with members of his enforcement team on May 18th.

All illegal mining stopped the day of the site inspection, and there has been no further activity.

During the visit, the Chief Prosecutor designated Sangihe Island as a priority target for illegal mining enforcement. He further reported that he had a moral and legal obligation to ensure enforcement as President Prabowo had given a direct order to crack down on illegal mining.

The Chief Prosecutor of North Sulawesi, is the senior law enforcement official responsible for overseeing criminal prosecutions, coordinating legal enforcement activities, and supervising prosecutorial offices across the province, including matters related to corruption, illegal mining, public order, and protection of state interests.

In public comments, Mr. Pattipeilohy specifically stated that a non-negotiable starting point was the complete end of illegal mining, criticized the lack of police enforcement, and emphasised the importance of the integrity of law enforcement officers.

The Chief Prosecutor also stated his intentions was to pursue criminal charges from offenders, seek damages equal to the gold previously illegally mined and pursue additional financial penalties to fund land remediation. The Company intends to provide documentation and records that will assist in calculating the financial damages they seek to recover.

The North Sulawesi High Prosecutor's Office appears to be working towards dismantling the network that is facilitating the illegal mining on Sangihe Island.

Company management understands that four foreign nationals alleged to be key orchestrators of the illegal mining are detained in prison and that a multi-agency investigation is underway. In addition, multiple excavators and an assortment of heavy equipment have been impounded and are in police custody.

TMS management and staff have tirelessly worked and is continuously liaising with multiple national enforcement agencies to end the illegal mining on Sangihe.

As enforcement and investigation of the illegal mining network is ongoing, further planned actions and details cannot be shared. The Company anticipates additional arrests. 

Mr. Terrence Filbert, Chairman and CEO of Baru Gold, commented: "The persistence of illegal mining on Sangihe Island underscores the local community's desire for the economic benefits that come from mining operations. There are few employment opportunities on Sangihe, and I can understand the appeal of even limited work. However, the economic benefits to locals are largely limited to low-paid, unsafe day labour.

"In contrast, our Company has paid millions of dollars in local and national taxes, has a comprehensive Community and Social Improvement Program, pays workers good wages with comprehensive benefits, and has significant plans for infrastructure development and improvement on Sangihe Island. In addition, we hold a valid Environmental Permit and are legally required and responsible for environmental reclamation."

Ending Illegal Mining Requires the Start of the Company's Production Operations: 

Recently, Company management met with the senior leadership of the Ministry of Energy and Mineral Resources (ESDM) and the Director of Special Crimes in the National Police of Indonesia. The intention of the meeting was to coordinate methods to end illegal mining. 

A key conclusion reached during the meeting was that the only enduring way to end illegal mining is for a legal mining operation to begin, and the parties in attendance agreed to act expeditiously to support this objective.

ABOUT SANGIHE GOLD PROJECT

The Sangihe Gold Project ("Sangihe") is located on the Indonesian island of Sangihe, off the northern coast of Sulawesi with a gold bearing area of approximately 25,000 ha. Sangihe has an existing National Instrument 43-101 report suitable for mining planning and production schedules for an area within the 65-ha area targeted for initial production. See the Company's "Independent Technical Report on the Updated Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia" (Mining Associates Pty Ltd, February 1st, 2025). Only 10% of the gold bearing area has been explored.

Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Company intends to proceed to production without the benefit of first establishing mineral reserves supported by a feasibility study. The Company cautions readers that the any production decision made by the Company will not be based on a NI 43-101 feasibility study of mineral reserves that demonstrates economic and technical viability and as such, there may be involved increased uncertainty and various technological and economic risks

The Company's 70-percent interest in the Sangihe-mineral-tenement Contract of Work ("CoW") is held through PT. Tambang Mas Sangihe ("TMS"). The remaining 30-percent interest in TMS is held by other Indonesian corporations. The term of the Sangihe CoW agreement is 30 years upon commencement of the production phase of the project. Baru has met all the requirements of the Indonesian government and has been granted its environmental permit.

ABOUT Baru Gold CORP.

Baru Gold Corporation is a dynamic junior gold developer with NI 43-101 gold resources in Indonesia, one of the top ten gold producing countries in the world. Based in Indonesia and North America, Baru's team boasts extensive experience in starting and operating small-scale gold assets.

On behalf of the Board of Directors

Baru Gold CORP.

"Terry Filbert"                       

Terry Filbert

Chairman and Chief Executive Officer

info@barugold.com

604-684-2183

For investor contacts more information, please contact:

Kevin Shum

Investor Relations

kevin@jeminicapital.com

647-725-3888 ext. 702

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

Certain statements in this News Release, which are not historical in nature, constitute "forward looking statements" within the meaning of that phrase under applicable Canadian securities law. These statements include, but are not limited to, statements or information concerning future work programs, results and timing of any work programs, the Company's performance or events as of the date hereof. These statements reflect management's current assumptions and expectations and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Those risks include the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; general market and mining exploration risks and production and economic risks related to design and engineering, manufacturing, technological processes and test procedures and the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance costs. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward looking statements to reflect events or changes in circumstances that occur after the date hereof.

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