Sterling Expands Mineralized Footprint to 2km With Near Surface Intercept in 850m Eastern Step Out

Sterling Metals Corp. (SAG) has reported drill results from three new holes—SC-26-19, SC-26-20, and SC-26-21—collared from a single pad approximately 850 meters east of SC-26-16, which previously marked the eastern limit of the MEPS zone. These first-pass holes on virgin ground have expanded the company’s drill footprint to roughly 2 kilometers east-west.

The results from SC-26-20, which reached a final depth of 512.23 meters with a dip of -70 and azimuth of 132, intersected 206.2 meters at 0.28% CuEq / 0.22% Cu from 49.8 meters to 256.0 meters. This interval includes 100.5 meters at 0.40% CuEq / 0.31% Cu from 155.5 meters, 38.6 meters at 0.65% CuEq / 0.49% Cu from 186.7 meters, and 20.0 meters at 0.98% CuEq / 0.76% Cu from 205.3 meters. Two adjacent sub-metre samples within massive to semi-massive magnetite returned 0.85 meters at 5.42% CuEq (4.74% Cu) and 0.90 meters at 4.53% CuEq (3.64% Cu).

Hole SC-26-19, with a final depth of 321.0 meters, dip of -45, and azimuth of 280, intersected 62.4 meters at 0.29% CuEq / 0.10% Cu from 202.6 meters, including 31.3 meters at 0.42% CuEq / 0.11% Cu with 566.94 ppm Mo. Additionally, the hole returned 20.1 meters at 0.20% CuEq from 31.9 meters. The interval between 77.5 meters and 114.0 meters was not sampled for assay, as GeologicAI scanning indicated less than approximately 0.1% Cu.

SC-26-21, drilled to a final depth of 402.0 meters with a dip of -48 and azimuth of 132, intersected 59.3 meters at 0.20% CuEq / 0.13% Cu from 156.0 meters, including 4.1 meters at 0.52% CuEq.

The company noted that chalcopyrite, bornite, covellite, and molybdenite were present in all holes, accompanied by very low pyrite levels. While the company describes the eastern continuity as part of the same underlying porphyry copper system, it disclosed that the eastern alteration differs from MEPS, including a relative lack of porphyry observed to date.

Sterling Metals Corp. (SAG) continues to operate as a pre-resource explorer, with no established resource estimate, preliminary economic assessment, reserves, or revenue. The company’s value proposition rests entirely on the potential for future discovery, making footprint expansion a critical metric for the market, which typically prioritizes scale over confidence at this early stage.

The company has reported the first assay results from a location 850 meters east of the previous known limit, confirming that mineralization extends into this new ground. This finding establishes a new physical fact and enlarges the target area, as no prior data had demonstrated assays at this specific location.

However, the grade of the new intercept is notably lower than previous findings. The headline interval of 0.28% CuEq over 206m represents the weakest result of the entire MEPS-adjacent campaign. It trails SC-26-10, SC-26-13, SC-26-16, SC-26-26, and SC-26-27 in both overall grade and high-grade core thickness. The different alteration character in the eastern zone introduces new geological questions rather than resolving existing ones, and the result does not improve the overall grade picture or shorten the path to a resource definition.

The best and most recent MEPS core intercepts remain:

• SC-26-26 (Sep 16, 2026): 397.19m @ 0.37% CuEq incl. 200m @ 0.53%, 101.9m @ 0.81%, 29.9m @ 1.08%
• SC-26-27 (Oct 5, 2026): 187.36m @ 0.34% CuEq incl. 44.1m @ 1.02% and 18.2m @ 2.02%
• SC-26-10 (Jul 29): 497.6m @ 0.41% incl. 8.5m @ 4.73%

The stock is currently trading at C$0.79, a fresh 52-week closing low. This represents a decline of approximately 62% from the C$2.06 peak reached on March 2, 2026, and sits below the C$0.83 July low. The share price has fallen through a period that included improving drill results, a C$14M capital raise, and land consolidation. The market has actively de-rated the 0.3-0.4% CuEq porphyry widths seen in previous holes, rather than paying for their repetition.

The new intercept, SC-26-20, carries 57.7% CuEq·m. This value represents approximately 39% of SC-26-26's 147 and 32% of SC-26-13's 178. While the grade is lower and the high-grade core is thinner, the intercept is located on genuinely new ground 850 meters away.

The holes did extend the system, meaning the result is not a miss, but rather an incremental expansion at a lean grade.

With a basic market capitalization of approximately C$41M (fully diluted ~C$52M) and no resources, Sterling Metals is priced on discovery optionality rather than ounces or tonnes. Adding an 850-meter low-grade eastern extension marginally widens the option but does not fundamentally reprice the equity.

Sterling Metals Corp. (TSXV: SAG, OTCQB: SAGGF) is a pre-revenue Canadian copper explorer whose flagship asset is the Soo Copper Project near Batchewana Bay, Ontario. The company holds a 35,000+ hectare position across the Batchewana Copper Belt following the consolidation of QcX Gold, a transaction closed on August 31, 2026. The deal involved the issuance of 4,922,249 shares, representing approximately 9.6% dilution to former QcX holders and expanding the project footprint by roughly 40%. The property is located about an hour north of Sault Ste. Marie, with year-round road access, and sits 20km from rail and deep-water access.

The company also previously held the Adeline Project in Labrador and the Sail Pond project. According to the latest MD&A, Adeline was impaired to $1 and sold for nominal value plus a reserved GORR, with no near-term exploration planned. The Sail Pond project was sold for 96,078 shares of the purchaser. Sterling Metals continues to list Adeline in its corporate boilerplate, though the asset is considered immaterial.

Financial data from the Q1 2026 filing (period ending March 31, 2026) and FY 2025 reports, which were not disclosed in today’s release, show cash holdings of C$11.13 million at March 31, 2026, compared to C$12.68 million at the FY 2025 year-end and C$2.05 million at Q3 2025. The November 2025 C$14.0 million placement significantly altered the balance sheet. Total equity stood at C$24.89 million, with a book value of C$0.54 per share and no debt. The company reported a net loss of C$233,000 in Q1 2026, an improvement from C$993,000, driven by C$651,000 in SG&A, a C$288,000 flow-through premium recovery, and C$56,000 in interest income. Operating cash burn was C$249,000 for the quarter, while investing outflows totaled C$1.36 million. The presentation indicates approximately C$7.8 million in cash at June 30, 2026, implying a quarterly draw of roughly C$3.3 million and a runway of two to three quarters at the current drill rate. Management has included an explicit going-concern flag.

The capital structure comprised 46.24 million shares at March 31, 2026, expanding to approximately 51.4 million basic shares post-QcX and post-access-agreement, and 65.4 million fully diluted shares. The fully diluted count includes 2.2 million options at an average price of approximately C$0.44, 10.5 million warrants weighted at C$1.47 (including 5-7 million at C$3.00), and 1.7 million RSUs. At a share price of C$0.79, the C$3.00 warrants are out of the money and are set to expire between March and July 2027. The C$0.40 to C$0.71 warrants are in or near the money. A corporate presentation dated October 6, 2026, cited a share price of C$1.00 and a C$51.4 million basic market cap, a valuation that is now approximately 23% stale.

Sterling Metals is in the exploration and discovery stage, with no resource, reserves, preliminary economic assessment, or production history. The company competes for capital as a micro-cap with a large-tonnage porphyry-style target and top-tier infrastructure.