On May 28, 2024, Mayfair Gold Corp. commented on an ex parte order obtained by Muddy Waters Capital LLC in the Supreme Court of British Columbia on May 27, 2024, restricting the distribution of funds held in trust of approximately $4.0 million representing the aggregate termination payments payable to the Company?s management and employees under their employment agreements in respect of a change of control. The Company stated that the trust arrangement for the change of control payments was described in the Company?s press release dated May 9, 2024.

The Company added that the order was obtained by Muddy Waters without notice to the Company, its employees or directors and without the opportunity for the Company, its employees or directors to be heard before the Court. The Company also stated that after reviewing the order with legal counsel, the Company is of the view that the basis for the order is wholly without merit. The lawsuit is transparently designed to threaten and coerce the board and management to act against the best interests of the Company and its shareholders and to breach the Company?s contractual obligations to its employees.

The Company, its directors and employees will vigorously challenge the order and defend themselves against Muddy Waters? litigation.