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Homerun Resources Inc. The Impact of Recent Global Tariffs: A Message from the CEO

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Vancouver, British Columbia–(Newsfile Corp. – April 7, 2025) – Homerun Resources Inc. (TSXV: HMR) (OTCQB: HMRFF) (FSE: 5ZE) (“Homerun” or the “Company”) is pleased to have the Company’s CEO address the recent events related to Global Tariffs.

As we navigate the evolving global trade landscape, I am pleased to share with our valued shareholders a clear assessment of how recently announced tariff policies affect Homerun and our strategy in the global market. The recent announcement by the United States of America, proposing the implementation of a baseline 10% tariff on all imported goods to the USA, along with higher “reciprocal” tariffs for many countries, has created significant capital market volatility. However, we want to assure our stakeholders that Homerun is well-positioned to weather—and potentially benefit from—these developments.

Current Trade Environment and Brazil’s Advantageous Position

On April 2, 2025, the United States implemented sweeping tariffs across global markets, creating uncertainty for many international businesses. Amid this volatility, multiple economic analysts are projecting that Brazil may emerge as a relative winner in this changing landscape. While Brazil faces a 10% tariff on all exports to the United States, this rate is significantly lower than the duties imposed on many other nations, including China (34%), the European Union (20%), and South Korea (25%).

Brazil’s financial markets have responded favorably to these developments, with the Brazilian real appreciating to its highest value since October 2024. This positive market reaction reflects recognition that Brazil’s trade relationship with the United States—which has maintained a trade surplus with Brazil since 2008—positions Homerun’s main country of operation advantageously compared to other markets facing more severe trade barriers.

Homerun’s Strategic Insulation from Tariff Impacts

We are pleased to report that each of our six profit centers is strategically insulated from significant tariff impacts, owing to our carefully diversified operational structure:

1. Ultra-Pure Silica Sand Processing Plant

Our silica purification operations in Bahia, Brazil, will produce exceptional quality silica with minimal impurities. There are very few global producers of this high-quality silica and two are based in the USA. Our targeted customer base for Homerun’s Ultra-Pure Silica Sand is generally in Asia, and currently being served by mostly imported silica, therefore our Brazilian-produced silica (>99.99% SiO2) will not be directly exposed to the new US / Brazil Tariff regime. Our Belmonte silica sand resource represents one of the world’s most exceptional deposits of high-purity quartz silica, providing us with a very competitive position regardless of newly announced USA tariff policies.

2. Solar Glass Manufacturing Facility

As pioneers of Latin America’s first dedicated solar glass manufacturing facility in Bahia, Brazil, we are extraordinarily well-positioned in the current trade environment. Our entire announced offtake customer base consists of Brazilian entities who have announced plans to expand their production, based on the Brazil government imposing new 25% tariffs on imported solar components including glass, creating a protected domestic market for our planned 5 GWs of production in one of the World’s largest solar markets with approximately 20 GW of solar module installations in 2024.

3. Enduring Thermal Energy Storage System

Our partnership with the National Renewable Energy Laboratory (NREL) and the US Department of Energy to develop the Enduring thermal energy storage system is built on collaborative innovation within the United States. The plan for commercialization is centric to USA manufacturing and USA equipment providers including our USA-based subsidiary Homerun Energy (USA). This initial production is exactly what the new “Made in the USA” tariff regime is designed to promote while furthering our strategic positioning in advanced energy solutions.

4. Energy Solutions and Management

Our AI energy management operations, established through Homerun Energy (EU) via the Halocell EU acquisition is primarily European and North Africa based with planned expansions into LATAM, starting in Brazil. This geographic diversity provides natural insulation from US-centered trade policies, allowing continued growth in these markets regardless of tariff developments.

5. Perovskite Solar and Advanced Materials

Similarly, our Perovskite technology initiatives via our Halocell (EU) acquisition have no relationship with the US market. This European-centered operation remains unaffected by US tariff policies, allowing continued innovation and market development in this cutting-edge solar technology. The R&D relationship with UC Davis is focused on developing new purification and processing methods for Silica and its derivative materials which can be deployed proximal to the Company’s Brazilian Silica operations.

6. Solar Modules

Our developing solar module initiatives involve exclusively Brazilian partners, positioning this emerging profit center entirely within Brazil’s large domestic solar market. With Brazil’s enhanced tax incentives for companies manufacturing domestic supply in the solar sector, we anticipate a strengthened competitive position as we develop this business segment.

Brazil’s Emerging Advantage in Global Trade

The Reuters analysis suggests that Brazil could emerge as an advantaged country within the changes in the current trade environment. Historically, during previous US-China trade conflicts (2018-2020), Brazilian commodities experienced increased demand as trade shifted from the US to Brazil, positively impacting exports of key commodities. As economist Iana Ferrao from BTG Pactual noted, “With increased tariffs on other countries, some sectors in Brazil may gain a relative competitive advantage.”

Brazil’s balanced trade relationship with the United States provides additional insulation, as the US has maintained a trade surplus with Brazil since 2008, which reached $253 million last year amid over $80 billion in bilateral trade. This established trade equilibrium makes Brazil less likely to face escalating trade barriers compared to countries with more contentious US trade relationships.

Strategic Positioning for the Future

While global markets navigate uncertainty, Homerun Resources stands firm on its strategic foundations:

1. Vertical Integration: Our control over the full industrial vertical from raw material extraction to finished products provides exceptional operational resilience.

2. Geographic Diversification: With operations across Brazil, Europe, and strategic partnerships in the US, we maintain flexibility across diverse regulatory environments.

3. Domestic Market Advantage: Brazil’s enhanced tax incentives for domestic solar production and recently imposed tariffs on imported solar components create a protected market for our Brazilian operations.

4. Critical Material Superiority: Our access to one of the planet’s most exceptional deposits of high-purity quartz silica provides a fundamental competitive advantage regardless of shifting trade policies.

Looking Forward

As financial markets respond to evolving trade policies, our strategic positioning across multiple geographies and verticals provides Homerun Resources with exceptional resilience built into its business model. The unique confluence of factors—superior silica quality, abundant quantity, and logistical advantages—positions our Belmonte resource as a critical asset in the global supply chain for advanced materials.

Rather than viewing the current trade environment with concern, we see opportunity. As stated by Luis Stuhlberger, Chief Investment Officer at Verde Asset Management, indicated regarding Brazil’s balanced trade ties with the US, Brazil has the potential to “benefit significantly” from the global tariff situation.

We remain confident in our strategic direction and our ability to deliver value to shareholders throughout this period of global trade adjustment. We will continue to monitor developments closely and adjust our strategies as needed to maximize opportunities within this evolving landscape.

You can find information in this news release sourced from: https://www.reuters.com/world/americas/brazil-may-emerge-winner-sweeping-us-tariffs-economists-say-2025-04-03/https://www.cbsnews.com/news/trump-liberation-day-new-tariffs-us/

About Homerun (www.homerunresources.com)

Homerun (TSXV: HMR) is a vertically integrated materials leader revolutionizing green energy solutions through advanced silica technologies. As an emerging force outside of China for high-purity quartz (HPQ) silica innovation, the Company controls the full industrial vertical from raw material extraction to cutting-edge solar, battery and energy storage solutions. Our dual-engine vertical integration strategy combines:

Homerun Advanced Materials

Utilizing Homerun’s robust supply of high purity silica sand and quartz silica materials to facilitate domestic and international sales of processed silica.Pioneering zero-waste thermoelectric purification and advanced materials processing technologies with University of California – Davis.

Homerun Energy Solutions

Building Latin America’s first dedicated high-efficiency solar glass manufacturing facility and pioneering new solar technologies based on years of experience as an industry leader in developing photovoltaic technologies with a specialization in perovskite photovoltaics.European leader in the marketing, distribution and sales of alternative energy solutions into the commercial and industrial segments (B2B).Commercializing Artificial Intelligence (AI) Energy Management and Control System Solutions (hardware and software) for energy capture, energy storage and efficient energy use.Partnering with U.S. Dept. of Energy/NREL on the development of the Enduring long-duration energy storage system utilizing the Company’s high-purity silica sand for industrial heat and electricity arbitrage and complementary silica purification.

With six profit centers built within the vertical strategy and all gaining economic advantage utilizing the Company’s HPQ silica, across, solar, battery and energy storage solutions, Homerun is positioned to capitalize on high-growth global energy transition markets. The 3-phase development plan has achieved all key milestones in a timely manner, including government partnerships, scalable logistical market access, and breakthrough IP in advanced materials processing and energy solutions.

Homerun maintains an uncompromising commitment to ESG principles, deploying the cleanest and most sustainable production technologies across all operations while benefiting the people in the communities where the Company operates. As we advance revenue generation and vertical integration in 2025, the Company continues to deliver shareholder value through strategic execution within the unstoppable global energy transition.

FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

The information contained herein contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements”.

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

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