Quartz Plans October Start of Phase 5 Drilling at Maestro Gold-Silver Project, British Columbia - Announces $1.37 Million Private Placement Financing of Units and Flow-through Units

Quartz Mountain Resources Ltd. announced a non-brokered private placement raising $1.37 million in gross proceeds. The financing consists of 1,550,000 standard Units and 1,875,000 Flow-Through Units, both priced at $0.40 per unit. Each unit includes one warrant exercisable at $0.50 per share for 24 months from issuance, expiring in September 2028.

Proceeds are designated for advancing Phase 5 core drilling at the Maestro Project and for general working capital. Insider participation is confirmed, with Dickinson Control Group (DCG) investing $400,000 in 1,000,000 FT Units and Sutton Group subscribing for 1,500,000 Units valued at $600,000.

Phase 5 drilling is scheduled to commence on October 20, 2026, targeting the expansion of the Prodigy discovery along its trend. The program builds on 12,951 metres drilled across 21 holes in four previous phases, with drill permits already secured for 37 additional sites.

Quartz Mountain Resources Ltd. (QZM) has structured a financing round priced at a modest discount to the recent market price of $0.42, with the new shares issued at $0.40. This pricing is standard for private placements within the sector, though the transaction is dilutive. Strong insider participation from DCG and the Sutton Group signals management confidence in the project's upside and serves to align shareholder interests.

The capital raise directly funds Phase 5, the next logical exploration step following the Phase 4 results released in July 2026. Those earlier results expanded the Prodigy epithermal system and identified porphyry Mo-Cu zones. This development represents an expected, incremental step in the company's exploration trajectory rather than a fundamental shift in project economics or strategy, maintaining the current risk profile. The market likely anticipated continued funding to advance the drill program, consistent with the company's historical pattern of raising capital for sequential phases.

Quartz Mountain Resources Ltd. is a junior exploration company focused on its 100%-owned Maestro Project in central British Columbia. The flagship Prodigy discovery hosts a multi-element system comprising near-surface epithermal gold-silver-molybdenum-copper mineralization, high-grade epithermal veins, an underlying gold-rich porphyry system, and adjacent porphyry molybdenum-copper mineralization. The project is currently in the delineation drilling phase, with no formal Mineral Resource Estimate or reserve figures disclosed.

Geological age dating places the mineralization in the Late Cretaceous period, approximately 67-68 million years ago. Structural similarities draw comparisons to the Blackwater Gold Mine and Bell Mine, suggesting regional prospectivity. The company also holds the Jake Project, a copper-gold porphyry discovery, but the Maestro Project remains the primary near-term catalyst.