Golcap closes Vallan acquisition, settles debt

• Golcap Resources Corp. completed the acquisition of the Vallan vanadium-titanium project in Quebec via issuance of 5,000,000 shares and a 2% net smelter return (NSR) royalty.
• The company settled a $40,000 trade payable debt by issuing 200,000 shares at a deemed price of $0.20 per share.
• Vallan project covers 4,508 hectares in the Manicouagan region with historical sampling data from 2004 showing V2O5 up to 0.52% and TiO2 up to 19.3%.
• Newly issued securities are subject to a four-month hold period pending Canadian Securities Exchange approval.
• This follows previous financing rounds in late 2025 and an early warning filing regarding Lara Exploration's stake acquisition in March 2026.

• Dilution Risk: The issuance of 5,200,000 shares represents a significant dilution event relative to the estimated total share count (~31.9M), increasing float by approximately 16%.
• Asset Quality Concerns: The Vallan project relies on historical sampling data from 2004 (over 20 years old) with no recent drilling or exploration results disclosed in this release, limiting immediate valuation upside.
• Debt Settlement Scale: Settling only $40,000 of debt via equity issuance at a premium ($0.20 vs market $0.15) suggests management is prioritizing cash preservation over shareholder value, as the capital raised is negligible compared to dilution cost.
• Market Expectations: The share price has declined from October 2025 highs ($0.33) to current levels ($0.15), indicating the market has already priced in financing risks; this news does not provide new exploration data to justify a re-rating.
• Related Party Context: Previous transactions involved Lara Exploration and Mineral Road Partners (related party); while Vallan is a separate asset, the pattern of equity-based settlements raises governance concerns regarding capital allocation efficiency.

• Company: Golcap Resources Corp. (CSE: GCP), a junior mining exploration company focused on vanadium-titanium projects in Quebec and Brazil.
• Flagship Project (Vallan): Located 100km north of Baie-Comeau, Quebec; covers 4,508 hectares with gabbroic anorthosite hosting magnetite and ilmenite. Historical data is the primary resource indicator.
• Secondary Project (Itaituba): Option to acquire up to 100% interest in Brazil; requires $2M exploration funding and share issuance to Lara Exploration, currently held in escrow pending regulatory approval.