SAGA Metals Announces Brokered LIFE Offering for Gross Proceeds of up to C$5 Million

On November 12, 2025, SAGA Metals announced a brokered private placement for gross proceeds of up to C$5 million. The offering, led by Red Cloud Securities Inc., is structured under the Listed Issuer Financing Exemption (LIFE).

The financing consists of three types of units: - Units: Priced at C$0.44, each consisting of one common share and one common share purchase warrant. - Flow-Through (FT) Units: Priced at C$0.50, each consisting of one flow-through common share and one warrant. - Charity FT Units: Priced at C$0.66, each consisting of one flow-through common share and one warrant.

All warrants from the offering will be exercisable at C$0.60 for a period of 36 months. The proceeds will be used for exploration on the company's properties in Labrador, Canada, with a focus on the Radar Project, as well as for working capital and general corporate purposes.

This financing is a necessary and anticipated step for SAGA Metals. The company has been consistently messaging its plans for a major 15,000-metre drill program at its flagship Radar project, which commenced on November 11, 2025. This C$5 million financing is required to fund that ambitious program.

• Context and Timing: The announcement comes one day after the company announced the commencement of drilling. This timing is logical, as it removes the financing overhang and provides capital certainty for the program. The market was likely anticipating a raise to fund the announced exploration.

• Pricing and Structure: The C$0.44 price for hard dollar units represents a 12% discount to the previous day's closing price of C$0.50. While any discount is dilutive to existing shareholders, this pricing is a significant improvement over the company's most recent large financing in October 2025, which was done at C$0.25 for hard dollar units. This step-up in financing price reflects the positive stock performance and increased investor interest following the build-up to the Radar drill program. Furthermore, having the financing brokered by Red Cloud Securities adds a level of institutional validation that was absent in the previous non-brokered placements.

• Dilution and Capital Structure: The financing will be dilutive. Raising the full C$5 million could issue over 11 million new shares and an equivalent number of warrants, representing approximately 22% dilution on a non-diluted basis. The company already has a very significant warrant overhang from previous financings, and adding another large tranche of 3-year warrants at C$0.60 will continue to cap the stock's upside potential.

• Financial Position: The company's Q3 financials (as of April 30, 2025) showed a very low cash position of C$89k. While they have raised approximately C$4.8 million since then, the burn rate on exploration, mobilization, and aggressive corporate marketing has been high. This financing is critical to avoid a work stoppage and see the drill program through to completion.

In conclusion, the news is routine and neutral. It is positive that the company is able to secure funding at a higher valuation than its last raise and through a broker. However, this is offset by the inevitable dilution and the addition to an already substantial warrant overhang. The financing removes a near-term risk and allows the company to focus on execution at Radar, which is the primary value driver.

SAGA Metals Corp. is a Canadian-based junior mineral exploration company with a portfolio of critical mineral projects in Eastern Canada.

The company's flagship project is the 100% owned Radar Titanium-Vanadium-Iron (Ti-V-Fe) Project in Labrador. The project covers 24,175 hectares and hosts the Dykes River Intrusive Complex. SAGA has defined multiple target zones, with the primary focus on the Hawkeye and Trapper zones. The company has consolidated its understanding through geophysics and surface sampling and commenced a major 15,000-metre drill program in November 2025 with the goal of defining a maiden mineral resource estimate.

Other key projects include: - Double Mer Uranium Project: A drill-ready uranium project in Labrador. - Legacy Lithium Project: A lithium project in James Bay, Quebec, which is under an option to joint venture agreement with Rio Tinto Exploration Canada Inc. - Amirault Lithium Project: A large lithium property contiguous to the Legacy project.

All major properties are subject to Net Smelter Return (NSR) royalties ranging from 1.5% to 2.0%.