BASANITE INC. SIGNS TERM SHEET WITH EASTMAN MINERALS FOR PROPOSED $2 MILLION INVESTMENT IN SOMALILAND GOLD PROCESSING PROJECT

The Somali American Minerals Company Advances $400,000 Bridge Deposit; Company Targets Closing Within 30 Days

NEW HAVEN, Conn., June 30, 2026 /PRNewswire/ -- Basanite Inc. (OTCQB: BASA) ("Basanite" or the "Company") today announced that it has executed a term sheet with Eastman Minerals and the Somali American Minerals Company, LLC, ("SAMCO") outlining the framework for a proposed $2.0 million investment in the Goroya Cawl Processing Plant ("Plant 1"), a gold processing project located in Somaliland.

Under the terms of the term sheet, Basanite will invest an aggregate of $2,000,000 into a joint venture relating solely to Plant 1. Upon completion of the investment, Basanite will hold a 40% ownership interest in Plant 1, while Eastman Minerals will retain a 60% ownership interest and continue to maintain operational control of the project. The transaction remains subject to customary due diligence and the negotiation and execution of definitive agreements.

As part of the transaction, SAMCO has advanced a $400,000 bridge deposit on Basanite's behalf. The remaining $1.6 million is expected to be funded pursuant to definitive agreements. Basanite currently intends to complete the financing and close the transaction within approximately 30 days, although there can be no assurance that financing will be obtained or that the transaction will be completed within that timeframe or at all.

The proposed investment provides Basanite with an opportunity to participate in the development of Plant 1 while establishing a strategic relationship with Eastman Minerals. As a material inducement for Basanite's investment, Eastman has granted Basanite a perpetual right of first refusal with respect to future gold processing plants, mineral processing facilities, mining operations, processing expansions, and substantially similar projects developed, acquired, financed, or operated by Eastman Minerals. The parties have also agreed to mutual non-competition and non-circumvention provisions intended to foster a long-term strategic relationship and align future business development opportunities.

Eng. Abdulkadir Mohamed Nur, Chairman, Eastman Minerals Inc. stated, "We are excited to enter into this strategic partnership with Basanite and SAMCO. This collaboration represents much more than an investment—it is the foundation of a long-term relationship. Together, we are committed to developing world-class mineral processing operations in Somaliland while creating sustainable value for our partners, investors, and local communities. We believe the future is bright, and this is only the beginning."

Ron LoRicco, Chief Executive Officer of Basanite, stated, "This proposed transaction represents an important milestone in Basanite's strategy to expand its participation in the natural resources sector. We believe the opportunity to acquire a significant ownership interest in Plant 1, together with the perpetual right of first refusal on future Eastman projects, creates a compelling platform for future growth. We appreciate the support provided by SAMCO and look forward to working with Eastman Minerals toward the completion of definitive agreements and the successful closing of the transaction. I would like to offer a special thank you to Adam Falkoff, Hamza Wardere, and Frederick Berndt for their dedication and perseverance in making this transaction happen."

About Basanite Inc.

Basanite Inc. (OTCQB: BASA) is focused on identifying, acquiring, and developing strategic opportunities in natural resources, industrial materials, and related sectors. Through disciplined investment and strategic partnerships, the Company seeks to create long-term value for its shareholders.

About Eastman Minerals Inc.

Eastman Minerals Inc. is a mineral processing and exploration company focused on gold and mineral recovery operations in Somaliland and the greater Horn of Africa region. Eastman operates Plant 1 and manages mineral concessions supporting both current production and longer-term exploration initiatives.

About Somali American Minerals Company

Somali American Minerals Company is a mineral investment and advisory firm specializing in mineral deal structuring, due diligence, and strategic partnership development across the Horn of Africa. SAMCO brings specialized expertise in navigating regulatory frameworks, structuring enforceable agreements, and advising mineral project financing and operations in the region. More information about SAMCO may be found at www.SAMCO-LLC.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the proposed transaction, anticipated financing, projected closing timeline, future business opportunities, and the potential benefits of the contemplated investment. Such statements are based on current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied. There can be no assurance that definitive agreements will be executed, financing will be completed, or the proposed transaction will close. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. Basanite undertakes no obligation to update forward-looking statements except as required by law.

SOURCE Basanite, Inc.