Sterling Metals Provides Corporate Update

• Drilling Status: Approximately 6,200 metres completed of a planned 20,000-metre program at the Soo Copper Project (31% completion). Focus remains on expanding the MEPS Discovery zone.
• Geological Confirmation: Recent drilling confirmed a felsic dyke-sill complex and an underlying Cu-Mo mineralized multiphase porphyry stock beneath the MEPS Discovery area, validating previous geological models from March 2026.
• Infrastructure & Technology: Company transitioned to a new 6.5-acre field headquarters near Sault Ste Marie with capacity for 300km of drill core. Integrated GeologicAI and VRIFY technologies for automated scanning and targeting.
• Financial Position: Treasury holds approximately $10.5 million, down from ~$15 million reported in November 2025.
• Asset Disposition: Announced closing of the previously announced sale of the Sail Pond Project to an arm's length purchaser for shares (96,078 common shares).

• Validation vs. Surprise: The news confirms geological models established in March 2026 (porphyry stock discovery) rather than introducing a new high-grade intercept or resource estimate. This is consistent with expectations following the February 2026 drill campaign announcement.
• Cash Burn Concerns: Treasury decreased from $15 million (Nov 2025) to $10.5 million (May 2026). While sufficient for current drilling, this indicates a burn rate of approximately $8.5 million over six months. Investors should monitor if the remaining 13,800 metres requires additional financing beyond current cash reserves.
• Asset Monetization: The closing of the Sail Pond sale provides minor liquidity and simplifies the portfolio but does not materially impact the core Soo Copper valuation story.
• Market Expectation: Given the significant price correction from September 2025 ($2.84) to current levels ($1.23), this update serves as a maintenance report rather than a catalyst for immediate re-rating unless new high-grade intercepts are released in subsequent holes.

• Company: Sterling Metals Corp. (TSXV: SAG, OTCQB: SAGGF).
• Flagship Project: Soo Copper Project (Ontario, Canada), located in the Midcontinent Rift belt near Batchewana Bay.
• Key Discovery: MEPS Discovery Zone identified in late 2025 with intercepts up to 33% Cu and high-grade gold/silver values.
• Geological Model: Multiphase porphyry copper system with associated bornite-covellite veining. Recent drilling confirmed a felsic porphyry stock ~1.5km from the initial discovery, suggesting a larger feeder system.
• Jurisdiction: Tier-1 jurisdiction (Ontario) with year-round access and existing infrastructure (rail, power).