Sun Peak Announces Non-Brokered Private Placement

Sun Peak Metals Corp. (PEAK) announced a non-brokered private placement for gross proceeds of up to $5,000,000. The offering consists of up to 12,500,000 units priced at $0.40 per unit. Each unit comprises one common share and one-half of a common share purchase warrant. Warrants are exercisable at $0.55 per share for a two-year term, with an accelerated expiry provision if the TSXV VWAP exceeds $1.10 for ten consecutive trading days.

Net proceeds are designated for exploration on projects in Saudi Arabia and Ethiopia, offering costs, and general working capital. Securities are subject to a four-month-and-one-day statutory hold period. The offering is subject to TSXV and regulatory approvals.

Sun Peak Metals Corp. (PEAK) has secured financing to address the going concern warning issued in its Q1 2026 MD&A, where management noted that current working capital of $4.44M is insufficient to fund planned operations over the next twelve months. The capital raise supports the maiden drilling programs at Safra and Halahila, which are already underway or completed, serving as a necessary operational step rather than a strategic shift, new asset acquisition, or change in exploration focus.

The units were priced at $0.40, aligning with the recent trading range of $0.39-$0.42 observed in early September 2026. This valuation indicates a fair market price without a significant discount that would excessively penalize existing shareholders. The issuance represents approximately 7.6% dilution on a non-diluted basis and ~6.8% on a fully diluted basis, including existing warrants and options.

The market had already priced in the need for additional liquidity following the Q1 2026 going concern disclosure. This financing sustains the existing exploration roadmap rather than altering it.

Sun Peak Metals Corp. is a mineral exploration company focused on the Arabian-Nubian Shield in Saudi Arabia and the Shire Project in Ethiopia. Its flagship projects include the Safra VMS project (copper-zinc), Halahila VMS project (zinc-silver-gold), and Al Miyah (gold-copper VMS). The company controls 1,072 km² across 13 exploration licenses in Saudi Arabia, acquired through the Round 9 licensing process and the acquisition of Saudi Discovery Company. Exploration focuses on volcanogenic massive sulphide (VMS) and orogenic gold systems. Management has a track record in the region, and the company benefits from Saudi government mining incentives, including exploration grants and co-funding opportunities.