Kenorland Completes Top-Up Right from Sumitomo and Centerra

• Kenorland Minerals completed a top-up right exercise with major shareholders Sumitomo Metal Mining Canada Ltd. and Centerra Gold Inc. on May 22, 2026.
• The transaction involved the issuance of 49,002 common shares to maintain existing ownership percentages (Sumitomo at 10.1%, Centerra at 9.9%).
• Gross proceeds from the issuance were $115,826.88, priced between $2.35 and $2.38 per share.
• The transaction was classified as a related party transaction but exempt from formal valuation due to value being below 25% of market capitalization.
• This follows previous top-up exercises in January 2026 ($55,767) and December 2025 ($408,162), indicating a consistent pattern of shareholder rights maintenance.

• The financial proceeds of $115,826 are immaterial relative to the company's working capital position (approx. $16.3M - $18.5M) and annual exploration spend forecasts (> $40M).
• The news does not introduce new project data or operational milestones; it is a corporate maintenance event regarding equity structure.
• Shareholder alignment is confirmed as Sumitomo and Centerra are maintaining their stakes, which reduces the risk of immediate dilution from future financings for these specific investors.
• However, given the stock price has declined 38% from its January peak ($3.45) following the Frotet resource announcement, this small capital injection does not alter the fundamental valuation thesis or address cash burn concerns.
• The market likely anticipated this exercise based on previous Investor Rights Agreements (IRAs), making it an expected routine event rather than a surprise catalyst.

• Business Model: Kenorland operates as a project generator and royalty company, leveraging partnerships to advance grassroots gold projects while retaining carried interests and royalties.
• Flagship Project (Frotet): The Regnault Deposit within the Frotet Project in Quebec holds an inferred resource of 14.5 Mt at 5.47 g/t Au (2.55 Moz). Kenorland retains a 4% NSR royalty, with Sumitomo as operator.
• Growth Engine (South Uchi): Located in Ontario's Red Lake District, this project is optioned to Auranova Resources. Kenorland holds a 30% carried interest and 2% NSR royalty. Phase 3 drilling is underway.
• Portfolio Expansion: Recent acquisitions include the Torrance REE Project (sold to Neotech) and McVicar/Rottenfish claims in Ontario, expanding land base in high-potential greenstone belts.