Chief Prosecutor Declares Sangihe Island Priority for Illegal Mining Enforcement After Foreign-Led Operation Fails

VANCOUVER, B.C. — June 3, 2026 — Leads & Copy — The Chief Prosecutor of North Sulawesi has declared Sangihe Island a priority enforcement zone for illegal mining activities following the cessation of a large-scale, foreign-led illegal mining operation. The mobilization, which ran from November 5, 2025, to May 18, 2026, involved over 20 excavators and aimed to establish processing facilities capable of producing an estimated $20 million CAD every 60 days. This operation was conducted under the guise of a local cooperative mine within the exclusive concession of Baru Gold Corp. and its subsidiary PT. Tambang Mas Sangihe (TMS).

The failed illegal mining effort resulted in significant environmental damage, including the destruction of protected forest and mangrove areas. Tragically, at least four Sangihe residents have died in connection with illegal gold mining on the island, including one death attributed to improper transportation of cyanide. Company management estimates the illegal miners incurred a net loss of approximately $3.5 million CAD from this mobilization.

Chief Prosecutor of North Sulawesi, Jacob Hendrik Pattipeilohy, visited Sangihe Island on May 18th, leading to the immediate halt of all illegal mining activities. He has designated the island as a priority target for enforcement, citing a direct order from President Prabowo to crack down on illegal mining. Mr. Pattipeilohy emphasized the legal and moral obligation to ensure enforcement and expressed intentions to pursue criminal charges, seek damages equivalent to the illegally mined gold, and impose additional financial penalties for land remediation. The company plans to provide documentation to assist in calculating these damages.

The North Sulawesi High Prosecutor's Office is actively working to dismantle the network supporting illegal mining. Four foreign nationals identified as key orchestrators have been detained, and a multi-agency investigation is underway. Multiple excavators and heavy equipment have been impounded. TMS management is cooperating with national enforcement agencies to end illegal mining on Sangihe.

Terrence Filbert, Chairman and CEO of Baru Gold, commented on the situation, noting the local community's desire for economic benefits from mining, while contrasting it with the company's commitment to significant tax contributions, community programs, fair wages, and infrastructure development. He highlighted Baru Gold's valid environmental permit and responsibility for reclamation.

A recent meeting between company management, the Ministry of Energy and Mineral Resources (ESDM), and the National Police of Indonesia concluded that the most effective way to end illegal mining is for a legal operation to commence. Parties agreed to expedite support for this objective.

The Sangihe Gold Project, located on Sangihe Island, encompasses approximately 25,000 hectares of gold-bearing area. An existing NI 43-101 report supports mining planning and production schedules for an initial 65-hectare area. Only 10% of the gold-bearing area has been explored.

Baru Gold Corp. holds a 70-percent interest in the Sangihe-mineral-tenement Contract of Work (CoW) through TMS. The company has met all Indonesian government requirements and obtained its environmental permit. Baru Gold Corporation is a junior gold developer with gold resources in Indonesia.

Source: Baru Gold Corp.