Labrador Gold Closes $2.1 Million First Tranche of Non-Brokered Private Placement and Announces Appointment of Raymond D. Harari as Director

Labrador Gold Corp. (LAB) closed the first tranche of its non-brokered private placement on October 19, 2026, raising $2,133,790.45. The offering was upsized from a maximum of $4 million to $7 million following strong interest from lead investors. The securities, consisting of flow-through shares (FT Shares) and non-flow-through shares (HD Shares), were priced at $0.05 per share. Lead investors Matachewan Consolidated Mines and McChip Resources subscribed for 42,675,809 FT Shares in the first tranche. The final tranche is expected to close on or about October 23, 2026, with insiders committing an additional $585,000.

Raymond D. Harari was appointed as a director under a newly executed Investor Rights Agreement. The agreement grants lead investors the right to nominate a second director by April 30, 2027. Lead investors retain top-up rights to maintain pro-rata ownership, capped at 19.99% of issued and outstanding shares. The agreement removes previous requirements for lead investors to vote in favor of the existing board or specific directors.

Proceeds from the FT Shares are designated for eligible Canadian exploration expenses, with tax benefits renounced to subscribers. Proceeds from the HD Shares will fund exploration, development, working capital, and general corporate purposes. Lead investors face a one-year contractual lock-up on FT Shares, expiring October 19, 2027, and customary lock-ups on HD Shares. A statutory hold period applies to all other securities for four months and one day.

Labrador Gold Corp. (LAB) closed a capital raise at $2.13 million, providing immediate liquidity to fund exploration on the Watson Property joint venture and satisfy the TSX Venture Exchange's $3 million investment mandate for hybrid issuers. The company has the option to upsizing the offering to $7 million, a move that signals strong conviction from insider and lead investors and counters recent narratives regarding capital flight or governance instability stemming from the proxy contest. Additionally, the appointment of Raymond D. Harari brings seasoned capital markets and exploration expertise to the board, aligning with the company's pivot to a hybrid explorer/investor model.

The first tranche of the offering issued 42.68 million shares. If the full $7 million is raised, an additional ~97.33 million shares could be issued, representing a total potential dilution of approximately 45% against the current 170 million shares outstanding. The $0.05 price point reflects the company's current market valuation and the necessity of the raise to avoid delisting or operational stagnation. Furthermore, the removal of board voting requirements in the Investor Rights Agreement slightly reduces board entrenchment, potentially improving governance flexibility without compromising strategic direction.

Labrador Gold Corp. (LAB) is shifting its operational model from a pure exploration junior to a hybrid mining and investment issuer. This strategy pairs grassroots exploration with strategic equity investments in private resource companies, a move designed to preserve liquidity and diversify upside potential.

The company’s flagship asset is the Watson Property in Ontario, a 127,100-hectare joint venture with Nemo Resources (Elementary Minerals Inc.) located in the Fort Hope greenstone belt. The project targets BIF-hosted gold and critical minerals, with an inaugural airborne EM survey planned for 2026. In the Yukon, Labrador Gold holds options on the Mariposa and Eureka Dome properties from Pacific Ridge Exploration within the White Gold District. This 16,000-hectare package features historical drilling that returned 1.51 g/t Au over 81.5m, and the company is currently conducting soil sampling and LiDAR surveys.

In Labrador, the Hopedale Property serves as the qualifying asset for TSXV listing. Located on the Thurber gold trend, the property has yielded recent grab samples returning 2.2 g/t Au. Beyond its exploration portfolio, Labrador Gold holds a 10.9% stake in Northern Shield Resources and 100% ownership of Minera San Cristobal SA in Bolivia, a major silver-lead-zinc producer.