Prospector Completes Disposition of Non-Yukon Assets to Lightning Resource and Confirms Record Date for Return of Capital

Prospector Metals Corp. has finalized the sale of its non-Yukon mineral assets to Lightning Resource Corp. The assets transferred include the Savant, TooGood, Whitton, and Devon Projects, along with a stake in TooGood Gold Corp. and proprietary data. In exchange, Prospector received 29,400,000 common shares of Lightning Resource Corp., which represent approximately 43.98% of Lightning's issued and outstanding shares.

Prospector will distribute these shares to its common shareholders as a special distribution, or return of capital, at a ratio of 0.174977 Lightning shares per Prospector share. The record date for the distribution is September 4, 2026, with shares trading ex-distribution at market open on that date. The payable date is set for September 10, 2026.

Additionally, 8,000,000 subscription receipts held in escrow automatically converted into 8,000,000 Lightning common shares and warrants to acquire 4,000,000 additional shares. These warrants are exercisable at $0.62 per share until September 2, 2027. The transaction is expected to close once final TSX Venture Exchange approval is received, which is considered a formality.

Prospector Metals Corp. (PPP) has completed the transaction originally announced in April 2026, which received conditional approval from the TSXV in May 2026. The market had already priced in the structural terms of the deal, which included the issuance of 29.4 million shares for non-Yukon assets, a 43.98% stake in Lightning Resource Corp., and a pro-rata distribution. The completion serves as an expected administrative milestone rather than a new valuation inflection.

The distribution mechanics are straightforward and do not alter the fundamental thesis: Prospector shareholders gain direct, pro-rata exposure to Lightning Resource Corp., while Prospector pivots to focus exclusively on the ML Project in the Yukon. No new financial metrics, assay results, or operational updates are included in the release, which is purely corporate restructuring and capital distribution. Given the expected nature of the closing and the lack of new pricing or discovery data, the impact is incremental and aligns with prior expectations.

Prospector Metals Corp. (PPP) is a pre-revenue exploration company focused on the ML Project in the Yukon, Canada. The flagship ML Project covers 10,869 hectares and hosts a newly discovered high-grade gold-copper-silver system known as the TESS Zone. The TESS Zone is interpreted as a reduced intrusion-related gold system (RIRGS) with steeply dipping structural corridors, coarse-grained copper, and bismuth-tellurium sulphides.

2025 drilling defined the TESS Zone with intercepts including: - 44m @ 13.79 g/t Au, 1.84% Cu, 38.08 g/t Ag

The 2026 program targets 25,000m of drilling across TESS, Skarn Ridge, and multiple look-alike targets. The company has pivoted to focus exclusively on the ML Project following the sale of its non-Yukon assets.