Sun Peak Metals Provides Overview of New Projects in Saudi Arabia as Part of SDC Transaction

The October 15, 2025, news release provides a detailed overview of the Saudi Arabian projects that Sun Peak Metals will acquire through its proposed combination with Saudi Discovery Company SPV Limited (SDC). The release emphasizes the strategic rationale for entering Saudi Arabia, citing the country's "Vision 2030" plan to make mining a key economic pillar, a modern regulatory framework, and robust government incentives.

The SDC portfolio consists of six 100%-owned granted exploration licenses covering approximately 438 km² in the Arabian-Nubian Shield. Key projects highlighted include: * Safra: Features two parallel VMS gossan trends at surface; initial gravity surveys are complete. * Al Miyah: Three licenses with several VMS prospects showing evidence of ancient mining; initial gravity work is complete. * Al Halahila: A 9 km long trend of discontinuous gossan outcrops. * Afif 1: A massive surface gossan extending ~2 km along strike.

The company confirms that its Shire Project in Ethiopia will remain a material property of the combined entity, with plans to resume exploration once conditions permit.

To understand the significance of this news, we must review the company's recent history.

Sun Peak's focus had been entirely on its promising Shire VMS Project in Ethiopia. After resuming exploration in early 2024 following a multi-year suspension due to regional conflict, the company's stock rallied to a high of $0.65 in April 2024. However, drill results released between May and July 2024, while showing mineralization, did not meet market expectations, leading to a significant sell-off.

The story took a dramatic turn on August 26, 2025, when the company announced it was declaring force majeure on the Shire Project due to a suspension of mining activities by the regional government. This was a major negative development, halting all progress and sending the stock to a 52-week low of $0.15.

The proposed merger with SDC, announced on September 18, 2025, was a necessary and dramatic pivot. It provides the company with a new direction and a portfolio of assets in a jurisdiction being heavily promoted for mining investment. The market reacted very positively, with the stock more than doubling from its lows on the news. This merger is a "bet the company" move, trading a stalled high-potential asset in a difficult jurisdiction for grassroots assets in a new, unproven (for junior explorers) jurisdiction.

The latest news of October 15 is a logical and expected follow-up to the merger announcement. It provides the first detailed look at the assets shareholders are being asked to approve acquiring. The impact is Routine - Positive because: * Positive: It adds substance and a geological narrative to the SDC deal, justifying the pivot to Saudi Arabia. It outlines a clear path forward and allows investors to begin assessing the exploration potential of the new projects. * Routine: It does not introduce a new material event. It is standard disclosure that would be expected after a merger announcement. The projects are all very early-stage (grassroots), relying on surface showings and initial geophysics. There is no drill-proven discovery, so the high exploration risk remains unchanged.

The news successfully markets the new strategy but does not de-risk the venture. The primary risk has shifted from political stalemate in Ethiopia to execution and exploration risk in Saudi Arabia. The definitive agreement for the merger is still not signed, which remains a key overhang.

Sun Peak Metals Corp. is a junior mineral exploration company. Its historical flagship asset is the Shire Project, a district-scale copper-gold VMS project in the Tigray Region of northern Ethiopia, located on the Arabian-Nubian Shield. Exploration at Shire was suspended in late 2020 due to conflict, resumed in early 2024, and is now under force majeure as of August 2025.

The company is undergoing a strategic transformation to become a Saudi Arabia-focused explorer through a proposed business combination with Saudi Discovery Company SPV Ltd. (SDC). The new flagship assets will be a portfolio of six early-stage, 100%-owned exploration licenses prospective for VMS copper-gold deposits, also within the Arabian-Nubian Shield.