Dixie Gold Inc. Discontinues Financing

Dixie Gold Inc. has discontinued its May 7, 2026, non‑brokered common share unit financing (up to 3 million units at $0.05 per unit) because the market price traded “materially lower” than the financing terms and the TSX Venture Exchange prohibits unrestricted‑use financings below certain share‑price minimums. The company explicitly states it “requires additional working capital to continue as a going concern” and still has not appointed a replacement for the CEO, president, and corporate secretary since Ryan Kalt resigned on March 19, 2026.

This announcement caps a cascade of red flags: - Ryan Kalt, the former CEO and control person, has been aggressively selling his stake — through April 29, 2026, he had divested a total of 4,099,500 shares at an average price of just $0.031 – $0.036, cutting his direct ownership from ~39.4% to ~23.3%. - The company’s flagship project portfolio (Preston uranium JV interest sold for $100,000; Soo East copper expanded; Pickle Crow East gold staked) has generated no revenue and no major drilling results. - With no CEO, no near‑term financing, a plummeting share price, and explicit going‑concern language, the company is effectively in survival mode.

This is a Material – Negative event. The cancellation of a desperately needed working‑capital raise coupled with a public going‑concern warning signals that the company’s financial position has deteriorated to a critical point. The market had already discounted the stock heavily (collapse from $0.07 to $0.01 in late April), but the official admission that the TSX‑V restricts financing below certain thresholds and that even insiders cannot bail it out removes any near‑term catalyst for recovery. The combination of a management vacuum, insider flight, and regulatory lock‑out from equity funding materially increases the risk of insolvency or a forced asset sale at fire‑sale prices.

Dixie Gold Inc. is a junior mineral explorer with a collection of early‑stage projects. Historically it held a minority interest in the Preston Uranium JV (sold in November 2025 for $100,000). Current assets include: - Soo East Copper Project (Ontario): 316 claims (~6,948 ha) near Sault Ste. Marie, staked on a royalty‑free basis. No drilling or resource. - Pickle Crow East Gold Project (Ontario): ~256 claims (~5,147 ha) adjacent to the historic Pickle Crow mine, acquired in February 2026 with existing working capital. Historical drilling reported but no current resource. - Red Lake Project: 2.5% NSR on four claims sold to Kinross in 2024. - Phoenix Lithium Project (NWT): Mining leases maintained through Crown rent payments. There is no producing asset, no resource estimate, and no revenue.