Q2 Metals Extends Near Surface Mineralization 100 Metres North at the Cisco Lithium Project, Intercepting 134.5 Metres at 1.20% Li2O and 101.6 Metres at 1.02% Li2O

Q2 Metals Corp. (QTWO) reported results from three drill holes—CS26-094, CS26-095, and CS26-096—comprising 1,090 meters of drilling. This activity is part of the 2026 Summer Drill Program, which has completed 19,521 meters across 43 holes to date.

Hole CS26-096 intersected two stacked intervals, including 134.5 meters at 1.20% Li2O starting at the surface to approximately 100 meters vertical depth, and a lower interval of 101.6 meters at 1.02% Li2O. The company described the lower interval as entirely outside the conceptual pit shell defined in the April-2026 Mineral Resource Estimate (MRE). The hole extended previously known mineralization approximately 100 meters north of hole-77.

Hole CS26-095 returned ten intervals, including 70 meters at 1.28% Li2O, 31.3 meters at 1.00% Li2O, and 25.7 meters at 1.33% Li2O. These results were described as confirming the main zone at its western margin, with the hole serving as an infill. Hole CS26-094 intersected 29.2 meters at 1.53% Li2O and 19.3 meters at 1.84% Li2O.

The company restated context from its April-2026 Inferred MRE, which outlined 295 million tonnes at 1.36% Li2O. This figure includes 270 million tonnes pit-constrained at a 0.4% cut-off and 24 million tonnes underground at a 0.7% cut-off. Cumulative drilling stands at 61,045 meters across 137 holes, with five rigs currently operating. Drilling is scheduled to continue through mid-December. A Preliminary Economic Assessment (PEA) by BBA is expected in Fall-2026. Q2 Metals Corp. reported $70.9 million on its balance sheet as of August 31, 2026.

Q2 Metals Corp. (QTWO) is currently positioned as an advanced explorer and pre-PEA developer with a market capitalization of approximately C$530 million. The company’s valuation is no longer driven by micro-cap discovery dynamics but is instead priced against a defined 295 Mt resource grading 1.36% Li2O and the anticipated Preliminary Economic Assessment.

The recent drilling campaign identified a 100 m northern extension outside the pit shell, which is genuinely new and mildly additive to the resource base. However, with grades ranging from 1.0% to 1.2%, the extension falls below the deposit average and does not alter the existing scale or grade thesis, which stands at 295 Mt and 9.9 Mt LCE. At the company level, this represents incremental tonnage rather than a fundamental shift in the project’s profile.

Market reaction to recent developments suggests investors are waiting for the PEA rather than rewarding drilling results. The stock tripled from approximately $0.99 in October 2025 to $3.34 in June 2026, driven by the drilling campaign and the April 2026 Mineral Resource Estimate. Since that peak, shares have fallen approximately 33% to $2.25. Recent strong drill releases have failed to move the stock; for instance, hole-93, described as the "best hole ever" with 403.7 m at 1.57% Li2O on August 25, 2026, moved the price only from $2.75 to $2.83. The shares have drifted downward since that announcement.

Because the stock has drifted rather than re-rated since the last headline holes, and because this release offers weaker grade than previous anchors while providing incremental scale, the result is viewed as solid but expected. It is neither a negative nor a catalyst. As this is not an earnings release, no revenue, margin, or guidance analysis applies; prior-period financials provided below serve only as context.

Q2 Metals Corp. (TSX-V: QTWO | OTCQB: QUEXF | FSE: 458) is a Canadian explorer and developer whose sole material asset is the 100%-owned Cisco Lithium Project. The project comprises 801 contiguous mineral claims covering 41,253 hectares in the Frotet-Evans Greenstone Belt, located in Eeyou Istchee James Bay, Quebec.

The company reports an Inferred Resource of 295 million tonnes at 1.36% Li2O, equating to approximately 9.9 million tonnes of lithium carbonate equivalent (LCE). This resource is split between 270 million tonnes pit-constrained at a 0.4% cut-off and 24 million tonnes underground at a 0.7% cut-off, as determined by BBA Inc. with an effective date of April 20, 2026. A separate Exploration Target of 44-67 million tonnes at 0.88-1.35% Li2O remains conceptual and is not classified as a resource.

Infrastructure access is situated 6.5 kilometers from the paved Billy Diamond Highway, approximately 150 kilometers from rail at Matagami, with connections to St. Lawrence deep-water ports and the Bécancour battery hub. The property itself is not located on a public road.

The project is currently in the pre-Pre-Feasibility Study (PEA) stage. No reserves, net present value (NPV), internal rate of return (IRR), capital expenditure (capex), all-in sustaining costs (AISC), or mine life have been released. Phase 1 metallurgy, involving high-intensity leaching (HLS) and dense media separation (DMS), is complete, while Phase 2 work on flotation and variability is underway. Environmental baseline studies and permitting for an access trail and camp are in progress.

As of August 31, 2026, the company held $70.9 million in cash. Prior-period context from the fiscal Q2-2025 period (six months ending August 31, 2025) showed C$28.2 million in cash, C$74.8 million in total equity with a book value per share of C$0.39, zero debt, a net loss of C$1.04 million, and C$7.4 million in capex, indicating a pre-revenue company funding operations through equity.

Leadership includes President and CEO Alicia Milne, Executive Chair Keith Phillips, former Piedmont Lithium executive, VP Exploration and Qualified Person Neil (Sage) McCallum, and CFO Jody Bellefleur. The Sprott Lithium Miners ETF is a notable holder of the company.