Valhalla Metals Intersects 32.6m of 4.35% CuEq, Including 6.5m of 6.98% CuEq, at the Sun Project

Valhalla Metals Inc. (VMXX) has released assay results for the first three diamond drill holes of its 2026 program at the Sun VMS project in the Ambler Mining District, Alaska. Of the six holes comprising 1,787 meters drilled to date, assays for three holes totaling 739 meters have been completed, with the remainder pending.

The disclosed intercepts are reported as core lengths with true widths unknown, and no cutoff grade is stated. The company did not provide specific from/to downhole depths in the text, noting that Table 1 and the collar table are available as image files. Holes Sun26-005 and Sun26-006 are described as 50-100 meter step-ups following a thicker interval identified in Sun23-04, while Sun26-007 was drilled into an area of historical drilling to validate past intercepts. Although the release states that all three holes hit multiple significant mineralized intervals, only one interval per hole is disclosed in the text.

• Sun26-005: 11.2 m at 5.67% CuEq (0.27% Cu, 4.01% Pb, 9.77% Zn, 0.21 g/t Au, 96.73 g/t Ag)
• Sun26-006: 32.6 m at 4.35% CuEq, including 6.5 m at 6.98% CuEq (0.46% Cu, 3.96% Pb, 11.95% Zn, 0.27 g/t Au, 135.4 g/t Ag)
• Sun26-007: 12.5 m at 3.97% CuEq (2.07% Cu, 0.69% Pb, 3.43% Zn, 0.18 g/t Au, 41.59 g/t Ag)

Valhalla Metals Inc. (VMXX) is a pre-revenue explorer with a five-year-old resource effective 1 October 2021, no reserves, no preliminary economic assessment, and a prior going-concern disclosure. At this stage, a drill result that extends a known system is materially relevant to the equity in a way the identical result would not be at a producer.

The company’s recent drilling activity builds on previous high-grade intercepts. The anchor result, Sun23-04, reported 21.4 m at 6.84% CuEq (146.4 %CuEq·m) within 52.4 m at 3.30% CuEq (172.9 %CuEq·m), as re-reported in the 1 June and 13 July 2026 releases. This was accompanied by Sun23-03 at 13.8 m at 3.44% (47.5), Sun23-02 at 14.6 m at 1.91% (27.9), and Sun23-01 at 13.7 m at 3.07% (42.1).

The stock’s movement from $0.46 on 17 April 2026 to $1.48 on 3 June 2026 was driven by the Smucker acquisition and the Teck/Marubeni-backed $15M financing, not by drilling. It has since round-tripped to $0.36, the 52-week low, down 76% from the June high and 24% below the $0.485 price Teck accepted, and 45% below the $0.65 placement price. The current price assumes essentially nothing about the 2026 drill program.

The new best hole, 006, returned 141.8 %CuEq·m, which is within ~3% of the high-grade anchor (146.4) and ~18% below the broader anchor interval (172.9), but with longer continuous width of 32.6 m versus 21.4 m at the high-grade threshold. Holes 005 (63.5) and 007 (49.6) both beat every 2023 hole except 23-04. Critically, 005 and 006 are genuine 50-100 m step-outs from 23-04 rather than repeats at the same collar, and 007 validates the historical model. Grade is somewhat lower, width is better, and the system demonstrably extends.

This confirms the Sun deposit continues at or above resource grade (roughly 1.1-1.4× the 3.6% CuEq resource grade) 50-100 m beyond previous drilling, with three of three holes hitting. This grows the tonnage case behind a resource that has not been updated since 2021. Against the deposit's ~10.7 Mt and ~386 kt CuEq contained metal, a C$54M market cap (151M shares implied by Teck's disclosed 31.4% holding of 47.5M shares, at $0.36) is not paying much for the success case.

Valhalla Metals Inc. (TSXV: VMXX; OTCQB: VMXXF) is a Vancouver-based explorer chaired by Rick Van Nieuwenhuyse, with Sorin Posescu serving as CEO and Bonnie Broman as VP Exploration. The company holds two high-grade polymetallic volcanogenic massive sulfide (VMS) assets in Alaska's Ambler Mining District.

The company’s flagship Sun property features an NI 43-101 resource estimate effective 1 October 2021, calculated at a $75 gross metal value (GMV) cutoff. The Indicated resource totals 1.71 million tonnes (Mt) at 1.48% copper (Cu), 0.21 grams per tonne (g/t) gold (Au), 60 g/t silver (Ag), 4.32% zinc (Zn), and 1.11% lead (Pb). The Inferred resource comprises 9.02 Mt at 1.21% Cu, 0.25 g/t Au, 81.7 g/t Ag, 4.18% Zn, and 1.46% Pb. Based on the company’s stated prices and recoveries, these categories equate to approximately 3.6% copper equivalent (CuEq), containing roughly 386,000 tonnes (kt) (about 850 million pounds) of contained CuEq, plus approximately 27 million ounces (Moz) of Ag, 450 kt of Zn, and 150 kt of Pb. The estimate is based on 100 drill holes. There are no reported reserves or a preliminary economic assessment (PEA).

Valhalla acquired the Smucker property on 1 June 2026 from Teck American, securing 27 claims covering approximately 435 hectares. A historical, non-NI 43-101 estimate for Smucker indicates 11.84 Mt at 0.94% Cu, 0.026 oz/t Au (approximately 0.89 g/t), 5.28 oz/t Ag (approximately 181 g/t), 6.61% Zn, and 2.29% Pb. This equates to roughly 5.6% CuEq on the same formula, representing a larger and higher-grade asset on paper than Sun, though it is not yet compliant or verified.

The acquisition deal structure included the issuance of 44,813,642 shares to Teck, deemed valued at $0.485, a 2.0% net smelter return (NSR) on parts of Smucker, and a priority purchase right/right of last offer to Teck on concentrate from both properties. Teck holds 47,505,950 shares, representing approximately 31.4% of the company, along with a board seat, top-up and information rights. Marubeni participated in the transaction for approximately $1.7 million. A concurrent placement raised approximately $15 million at $0.65 per share, having been upsized twice from an initial $5 million target.

Infrastructure developments include the planned 211-mile Ambler Access Road, which is set to cross Valhalla's Sun claims. Federal actions in 2026, including Public Land Order 7966 opening approximately 2.1 million acres of the Dalton corridor and the reinstatement of AAP permits, have improved the permitting backdrop. Access remains the gating item for both deposits.

Prior-period financial context for Q1-2026 and FY-2025, as reported and pre-financing, shows a net loss of $172,966 in Q1-2026 and $697,382 for FY-2025. Operating cash outflow was $455,481 in FY-2025. Cash holdings stood at $378,520 at 31 March 2026, before the approximately $15 million placement closed. The Q1-2026 MD&A carried an explicit going-concern flag dependent on completing that financing. The share count post-closing is approximately 151 million, implied by Teck's disclosed 31.4% stake in 47.5 million shares and consistent with the sum of 83.2 million, 44.8 million, and 23.1 million shares. At $0.36, the company’s market capitalization is roughly C$54 million.