Pacific Ridge Options Yukon Gold Projects to Labrador Gold

• Pacific Ridge Exploration Ltd. has entered into an option agreement to sell its Mariposa and Eureka Dome gold projects in the Yukon's White Gold District to Labrador Gold Corp.
• The transaction allows Labrador Gold to earn a 100% interest through cash payments, share issuances, and mandatory exploration expenditures over four years.
• Total consideration includes $500,000 in cash (paid over time) and 6,670,000 common shares of Pacific Ridge issued upon earning the interest.
• Labrador Gold is committed to spending $5,400,000 on exploration expenditures over four years, relieving Pacific Ridge of this cost burden.
• A milestone payment of $1,000,000 cash is due upon filing a positive feasibility study for any part of the properties.
• Pacific Ridge retains 2% Net Smelter Return (NSR) royalty on Mariposa and 1% NSR on Eureka Dome.
• The move enables Pacific Ridge to refocus resources entirely on its copper-focused exploration projects in British Columbia (Kliyul and RDP).

• Strategic Alignment: This news validates the strategic pivot announced in the April 2026 investor presentation to become "British Columbia’s leading copper exploration company." Shedding non-core Yukon gold assets reduces management distraction.
• Financial Impact: The immediate cash inflow is minimal ($100,000 closing payment), which does not materially alter liquidity given the $4.65M financing closed in September 2025. However, the $5.4M exploration commitment by Labrador Gold effectively reduces Pacific Ridge's future capital burn rate on these specific assets.
• Dilution Risk: The issuance of 6,670,000 shares to Labrador Gold represents approximately 10% dilution relative to current outstanding shares (62.9M). This is a significant overhang that must be weighed against the cash savings from not funding Yukon exploration.
• Valuation Context: The core value driver remains the Kliyul and RDP copper-gold projects, which have recently defined resources and returned high-grade drill intercepts. This deal does not enhance the valuation of the core assets but cleans up the portfolio structure.
• Market Expectation: Given the company's history of financing (Sep 2025) and aggressive drilling in 2025/2026, monetizing secondary assets to fund operations or reduce risk is a standard operational step for junior explorers. It is not unexpected given the strategic focus shift.

• Company Strategy: Pacific Ridge aims to become British Columbia’s leading copper exploration company by advancing its flagship projects, expanding inferred resources, and targeting new porphyry centers.
• Flagship Project (Kliyul): Located in the Quesnel Terrane, BC. Hosts an Inferred Mineral Resource of 334.1 Mt @ 0.33% CuEq (2.42 billion lbs CuEq). The project is open for expansion in multiple directions and at depth.
• Secondary Project (RDP): Located in the Golden Horseshoe, BC. Recent drilling returned one of B.C.’s best copper-gold intervals (112.2m @ 1.35% CuEq). Interpreted as a steeply north-dipping tabular porphyry body.
• Yukon Projects: Mariposa and Eureka Dome are now being optioned to Labrador Gold, removing them from the core portfolio focus.