Lipari Mining Ltd announces a delay in the filing of the following continuous disclosure documents

Lipari is a mining and exploration company, with a track record of operations at the Braúna diamond mine in Brazil, which produced over 1.2 million carats of natural diamonds over the life of the operation between 2016 and 2025. Lipari is now applying its operational expertise to advance the highly prospective Tchitengo Diamond Project in Angola, marking the next phase of growth for the Company. Lipari’s shares are listed for trading on the CBOE Canada Exchange and trade under the symbol “LML”, and on the Frankfurt exchange under the symbol “0Y90”.

The Company’s audited annual financial statements for the year ended December 31, 2025, as required by section 4.2 of National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”); management’s discussion and analysis for the year ended December 31, 2025, as required by section 5.1 of NI 51-102; and the related CEO and CFO certifications required under National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings.

The delay in filing the Annual Filings arises primarily from circumstances outside of the Company’s control, notwithstanding the exercise of reasonable diligence by the Company. In particular, the Company has experienced an unexpected loss of anticipated liquidity resulting from both the current downturn in the natural diamond market and delays of a third-party counterparty under an anticipated financing arrangement. As a consequence of this reduced liquidity, the Company was unable to satisfy outstanding audit fees. As a result, the Company’s auditor has temporarily suspended audit work pending payment. The auditor has not resigned, remains the Company’s auditor of record, and is prepared to resume audit work upon payment.

The Company is in the process of organizing alternative financing to restore liquidity. The Company currently expects that the auditor will be in a position to complete the audit of the annual financial statements on or about May 15, 2026, with the Annual Filings to be filed as soon as practicable thereafter.

As a result of the Company’s failure to file the Required Filings by March 31, 2026, the Ontario Securities Commission issued a failure-to-file cease trade order to the Company on April 7, 2026. The FFCTO provides an exception for beneficial securityholders of the Company who are not currently (and who were not as of April 7, 2026) insiders or control persons of the Company and who sell securities of the Company acquired before April 7, 2026, if both of the following criteria are met: the sale is made through a “foreign organized regulated market”, as defined in section 1.1 of the Universal Market Integrity Rules of the Canadian Investment Regulatory Organization; and the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation. As a result of the FFCTO, Cboe Canada suspended trading in the Company’s common shares on April 8, 2026. The Company confirms that it is not subject to any insolvency proceedings. Other than as disclosed in this news release, there have been no material changes in the business or affairs of the Company that have not been previously disclosed.