Quartz Closes $1.7 Million Unit Financing

Quartz Mountain Resources Ltd. closed a private placement of 4,247,500 units on October 16, 2026, raising gross proceeds of $1.7 million. The financing was upsized from the originally announced $1.37 million to $1.71 million, comprising $1.11 million from flow-through units and $600,000 from standard units.

Significant insider allocations were made, including 1,500,000 units to Chairman Robert Dickinson and his associates, and 1,500,000 units to The Sutton Group Inc. Post-closing working capital stands at $4 million. Proceeds are designated for exploring the British Columbia gold-silver-copper project portfolio and general working capital.

Securities carry a statutory hold period of four months and one day. Completion was subject to TSX Venture Exchange approval.

Quartz Mountain Resources Ltd. (QZM) closed a financing that had been fully anticipated by the market. The company initially announced the capital raise on September 24, 2026, followed by an upsizing notice on October 1, 2026. The proceeds will directly fund the Phase 5 drilling program at the Maestro Project, which is scheduled to commence on October 20, 2026. This timing aligns with operational plans, ensuring no disruption to the exploration timeline.

The cash injection serves as an incremental follow-up to previous financings, including a $2.88 million warrant exercise in March 2026. It does not introduce new strategic partners, change the project's risk profile, or alter the valuation thesis. The move confirms management's ability to secure capital from aligned insiders.

The stock is currently trading at $0.38, below the $0.40 unit issue price. This reflects typical short-term selling pressure common for small-cap explorers following a financing, rather than a fundamental shift in the company's prospects.

Quartz Mountain Resources Ltd. (QZM) is a precious metals exploration company focused on British Columbia. Its flagship asset is the Maestro Project, which contains the Prodigy gold-silver-copper-molybdenum discovery. The project is in the delineation drilling phase and is fully permitted with 47 approved drill sites.

Geologically, Prodigy features an integrated system of near-surface epithermal Au-Ag-Mo-Cu, underlying gold-rich porphyry, and adjacent porphyry Mo-Cu mineralization. Age dating places mineralization in the Late Cretaceous (~67-68 Ma), comparable to the Blackwater Gold Mine. The company also holds the Jake Project, a Cu-Au-Ag porphyry discovery with 39 approved drill sites.

The company is currently in the exploration and delineation stage. No formal Mineral Resource Estimate or reserve figures have been released.