Mayfair Gold Sets the Record Straight and Corrects Muddy Waters’ Misleading and Inaccurate Statements

Reiterates Board and Management Commitment to Good Governance and Value Creation

MATHESON, Ontario, April 04, 2024 (GLOBE NEWSWIRE) -- Mayfair Gold Corp. (“Mayfair” or the “Company”) (TSX-V: MFG; OTCQB: MFGCF) today responded to a letter to shareholders (the "Letter") released by Muddy Waters Capital LLC (“Muddy Waters”) on April 2, 2024, confirming that Muddy Waters has requisitioned a meeting of shareholders for the purpose of reconstituting the Company’s board of directors (the “Board”).

The Company is reviewing the requisition and will respond within the timeframe set out in applicable legislation. In the meantime, there is no need for shareholders to take any action.

The Company also wishes to set the record straight and correct misleading and inaccurate statements made by Muddy Waters in the Letter.

Contrary to Muddy Waters’ assertion that it hoped to resolve issues with the Company quickly, it has consistently refused to engage in a constructive dialogue with Mayfair. Instead, Muddy Waters has insisted that the Board immediately appoint its nominee Darren McLean as a director and chair, despite Mr. McLean never having served as a director or officer of a Canadian public company. When the Board indicated its willingness to consider Mr. McLean’s candidacy as part of a comprehensive and proactive process to identify suitable candidates for board recruitment, Muddy Waters refused.

Muddy Waters did not express any dissatisfaction or deterioration of trust in the Board until sending its March 14, 2024, demand that the Board immediately halt its recruitment process and instead appoint its nominee as Chair.

The Letter also makes a number of unsubstantiated statements about compensation for directors and management which require clarification and context. The Company’s option pool has not been “depleted” and sufficient options remain available under the Company’s option plan (for reference, dated February 24, 2020) to support any necessary additions to the Board or management team in the near term. Furthermore, approximately 90% of options under the Company’s option plan were granted prior to Muddy Waters disclosing its investment in the Company.

Mayfair’s compensation has been supported by detailed research conducted by external consultants who have ranked the Company against a peer group of mineral exploration and development companies with a range of market capitalization, exchange listing, and enterprise value comparable to the Company. Contrary to statements made in the Letter, the Company’s compensation has ranked well below that of its benchmark peer group. No shareholder other than Muddy Waters has expressed any concerns to the Board or management regarding the Company’s compensation practices. An offer for a representative of Muddy Waters to meet with the Compensation Committee of the Board was declined.