Kalo Gold Announces C$15.5 Million Non-Brokered Private Placement To Accelerate Vatu Aurum Project Exploration In Fiji

On December 2, 2025, Kalo Gold announced a non-brokered private placement to raise gross proceeds of up to C$15.5 million. The financing consists of units priced at C$0.32 each. Each unit includes one common share and one full common share purchase warrant, exercisable at C$0.50 for 36 months. The warrants are subject to an acceleration clause if the company's shares trade at or above C$0.75 for 20 consecutive days.

Concurrent with the financing, the company intends to complete a four-for-one (4:1) share consolidation. All pricing for the offering is on a post-consolidation basis. The use of proceeds is designated for accelerating drilling and exploration at the company's flagship Vatu Aurum Project in Fiji, as well as for working capital and general corporate purposes.

This financing is a direct and necessary consequence of the company's exploration success and is materially positive. It fundamentally de-risks the company's ability to execute on its exploration plans for the next 18-24 months.

Reviewing the company's progress over the last year provides essential context: - Early 2025: Kalo Gold was methodically building its geological case, identifying numerous targets and defining the potential for a large, preserved epithermal system at Vatu Aurum. The stock was stagnant, trading between C$0.04 and C$0.07. - April-July 2025: Facing a need for capital, the company announced and closed an oversubscribed private placement, ultimately raising C$5.88 million at C$0.05 per unit. The participation of strategic investors Silvercorp Metals (C$1.5M) and Crescat Capital (C$0.5M) was a significant vote of confidence that provided the funds for the 2025 drill program. - October 15, 2025: This was the game-changing event. The company announced bonanza-grade drill results from hole VA25-DH11, which intersected 22.12 meters of 12.80 g/t Au. This validated their geological model and signaled a major discovery. The stock price spiked from C$0.10 to a high of C$0.15 on massive volume before settling back to the C$0.09 range. - December 2, 2025: The C$15.5 million financing is the company capitalizing on this discovery. Raising this amount of capital, which is over 60% of its pre-announcement market capitalization, fully funds an aggressive follow-up drill campaign. This removes the financing overhang, a persistent risk for junior explorers, and allows management to focus entirely on creating value through drilling.

Critical Viewpoint: While the funding is unequivocally positive, there are significant trade-offs. - Dilution: At a pre-consolidation price of C$0.08, the C$15.5 million financing will issue approximately 194 million new shares. This represents massive dilution to existing shareholders, increasing the pro-forma pre-consolidation share count to over 585 million. - Share Consolidation: The 4:1 consolidation is a cosmetic move often used to make a low-priced stock appear more substantial. While it does not change the company's value, such actions are frequently followed by share price weakness as the market can interpret it as a sign of a struggling stock. The post-consolidation financing price of C$0.32 represents a discount to the Dec 1 closing price of C$0.36 (C$0.09 x 4). - Warrant Overhang: The financing includes a full warrant, adding up to 48.4 million new warrants (post-consolidation) to the capital structure. Combined with the ~119 million pre-consolidation warrants from the summer financing (exercisable at C$0.08), this creates a significant overhang that could cap future share price appreciation.

Despite these negatives, securing the funding is the most critical step for an exploration company post-discovery. The ability to immediately and aggressively drill out the discovery at QC1 and test the numerous other high-priority targets is paramount. The dilution and consolidation are the necessary costs of this crucial de-risking event.

Kalo Gold Corp. is a junior exploration company focused on its 100%-owned Vatu Aurum Gold Project in the Republic of Fiji. The 367 sq km project is located on the island of Vanua Levu and hosts several low-sulphidation epithermal gold targets. The company's exploration model is focused on two main mineralization styles: diatreme/surge-hosted gold at the Qiriyaga Complex and structurally controlled vein-hosted systems along the Namalau, Loma, and Buca trends. The project's primary value driver is the recent bonanza-grade discovery in drill hole VA25-DH11 at the Qiriyaga Complex. The property is royalty-free.