Scandium Canada Discovers New Potential Zone East of the TG Deposit: Over 500 Metres of the Same Rock as the Current Resource

Scandium Canada Ltd. announced the discovery of a new ferrosyenite zone, designated the "East Zone," at its Crater Lake project in Nunavik, Québec. Located 146 meters east of the TG deposit, the zone falls within the current 2025 pit shell design. The discovery was identified through six drill holes—CL26109, 110, 112, 113, 114, and 115—which intersected ferrosyenite, the same host rock as the TG deposit, across a 500-meter portion of a 750-meter long magnetic anomaly that had not been previously drilled.

The company stated that these six holes outline a ferrosyenite envelope exceeding 500 meters along the 750-meter anomaly, describing the zone as "open in all directions." Scandium Canada noted that downhole core length does not represent true thickness. The release cautioned that the lithology description relies on visual observation of drill core and that such observations are not a substitute for laboratory assays. The holes were originally designed to test the TG deposit at depth beneath the 2025 MRE block model but were re-purposed mid-program to test the East Zone.

Reported intervals, all with Sc₂O₃ as "Assay results pending," include: - CL26109: 41.00-89.90 m (48.90 m); 147.10-175.60 m (28.50 m); 208.30-219.55 m (11.25 m) - CL26110: 28.80-65.50 m (36.70 m) - CL26112: 54.50-77.00 m (22.50 m) - CL26113: 18.00-57.50 m (39.50 m); 78.00-97.00 m (19.00 m) - CL26114: 127.50-130.50 m (3.00 m) - CL26115: 93.00-99.00 m (6.00 m); 148.00-150.00 m (2.00 m); 176.00-195.00 m (19.00 m)

Eric Kinnan, P.Geo. (OGQ No. 00788), an independent consulting geologist, serves as the Qualified Person for this announcement.

The company noted that this discovery extends the prospective footprint of the deposit but does not currently add any tonnes, grades, or net smelter return (NSR) values.

The primary data point in the release is the anchor result from hole CL26095, drilled on October 7, 2026. The hole intersected 150.1 meters at 292 ppm Sc₂O₃, extending the TG deposit approximately 335 meters to the north.

Market reaction to the announcement was muted. The stock traded at C$0.17 on October 6, rose slightly to C$0.18 on October 7, and returned to C$0.17 by October 13-14. This price action suggests the result was effectively unpriced by the market, which has not assigned significant value to incremental scandium assays at current grades or rock-type identification.

The stock has experienced a significant decline from its 52-week high of C$0.32 on January 19, 2026, dropping roughly 47% to the current levels. Since April 2026, the shares have traded in a range between approximately C$0.16 and C$0.23.

Scandium Canada remains a pre-revenue explorer and developer with a defined resource but no reserve, no feasibility study, and a first Preliminary Economic Assessment (PEA) still pending. While the discovery of a new mineralized zone at this stage of development is typically considered a significant event, such scale events generally require assay data to be recognized as material.

At a market capitalization of approximately C$91.6 million, based on 538.8 million basic shares and 739.3 million fully diluted shares, the company is currently valued with assumptions regarding the substance of both the Crater Lake story and the Scalium+ alloy story. The addition of 500 meters of unassayed ferrosyenite does not alter these valuation drivers.

The update aligns with the company’s guidance regarding a steady flow of news from Crater Lake as results become available.

For context, prior-period figures not disclosed in today’s release include cash of $11.55 million, working capital of $15.18 million, and a nine-month net loss of $1,621,755 for the quarter ended May 31, 2026. The company reported no going-concern flags and stated that its liquidity is sufficient for at least 12 months.

Scandium Canada Ltd. (SCD) operates a dual-engine business model combining upstream resource development with downstream alloy manufacturing. The company’s upstream operations center on the Crater Lake scandium and rare earth project in Nunavik, Québec, located approximately 220 km east of Schefferville. Scandium Canada holds 100% ownership of the project, which includes planned mining infrastructure and a hydrometallurgical facility near Schefferville. On the downstream side, the company owns Scalium+, formerly Ferreol Technologies, which it acquired on June 29, 2026, for approximately C$6.6 million in cash, shares, and assumed liabilities, plus an earn-out of up to C$2.45 million based on revenue. Scalium+ produces proprietary, patent-pending aluminium-scandium alloys in various forms, including powders, wires, rods, sheets, plates, and billets, targeting sectors such as aerospace, defence, automotive, space, and sporting goods.

The company’s flagship asset is the TG Zone, with a Mineral Resource Estimate (MRE) effective April 2, 2025, prepared by Norda Stelo under NI 43-101 standards. The deposit contains an Indicated resource of 16.3 million tonnes at 277.9 ppm Sc₂O₃ and an Inferred resource of 20.9 million tonnes at 271.9 ppm Sc₂O₃. The resource also includes magnet rare earth elements (Dy, Nd, Pr, Tb, La) at a cutoff of CA$205.54/t NSR, with an NSR range of CA$369-379/t. The deposit measures approximately 700 m long by 200 m deep, with an average width of 130 m, and remains open in all directions.

Scandium Canada is currently in the pre-development stage, with no established reserves, feasibility study, or production. A Preliminary Feasibility Study (PFS) originally scheduled for summer 2026 was postponed to prioritize an updated MRE, expected before the end of 2026, and an updated Preliminary Economic Assessment (PEA), guided for early November 2026.

Financial data from the quarter ended May 31, 2026 (Q3 FY2026), shows cash of C$11.55 million and working capital of C$15.18 million. Total liabilities were reduced to approximately C$1.6 million following the repayment of unsecured loans, with a nine-month net loss of C$1,621,755. In contrast, the Q1 2026 filing (quarter ended November 30, 2025) reported cash of C$915,894 and intangibles of C$14.52 million, representing the pre-financing baseline.

Funding history includes a C$17.25 million bought-deal at C$0.22 per unit in March 2026, comprising 78,409,300 units plus full over-allotment. This was followed by a C$5 million LIFE flow-through offering at C$0.20 per unit in August 2026, consisting of 25,000,000 units. Additional capital came from C$2.96 million in warrant and option exercises, and up to C$6,915,478 in non-refundable contributions from Natural Resources Canada and the Canadian Space Agency.

As of the August 27, 2026 presentation, the capital structure included 538,827,514 shares outstanding. The company held 29,837,500 options at an average price of approximately C$0.12, 62,581,195 pre-2026 warrants, 103,409,300 2026 warrants, and 4,650,558 broker warrants. Fully diluted shares totaled 739,306,067, with potential cash proceeds of approximately C$37.5 million if all options and warrants were exercised.

Regarding social licence, Scandium Canada signed a 2024 Pre-Development Agreement with the Naskapi Nation of Kawawachikamach. The Taasipitaakin Trust holds roughly 5% of the equity. The company continues stakeholder engagement regarding an access road and the Schefferville hydromet plant. Management includes President and CEO Simon Thibault, CFO Steve Nadeau, Scalium+ CEO Félix Lapointe, Chief Scientific Officer Dr. Luc Duchesne, Chief Technology Officer Jean-François Magnan, Sustainability lead Cindy Valence, and Chairman Jeff Swinoga, with Guy Bourassa serving as a director.