Early Warning Report and News Release Regarding Securities of Dixie Gold Inc.

The most recent news release (May 22, 2026) reports that former CEO and control person Ryan Kalt has divested another 1,600,875 common shares of Dixie Gold at an average price of $0.03, reducing his direct stake from 19.81% to 14.77%. This is the sixth insider divestment filing since late April 2026, marking a relentless sell-down by the company’s once-dominant shareholder. In parallel, the company’s attempt to raise working capital via a $0.05 unit financing was abandoned on May 11 after the stock price collapsed and TSX Venture Exchange rules restricted below-threshold financings; management explicitly warned that additional working capital is required to remain a going concern. The CEO, president, and corporate secretary resigned on March 19, and no replacement has been named.

The cumulative effect of these events is devastating for Dixie Gold’s viability as a listed exploration company. The financing failure, combined with the ongoing insider selling spree, signals a complete breakdown of confidence from both insiders and the market. The stock has lost over 66% of its value since February 2026 and is now trading at levels that make any conventional equity raise nearly impossible under TSX Venture policies. With working capital drying up, no CEO, and the largest shareholder sprinting for the exit, the company faces an acute going‑concern risk. The latest divestment, while incremental in size, reinforces the narrative that no floor exists for the stock as long as Kalt continues to liquidate his position. The market cap has collapsed to roughly $950,000, far below the minimum needed to sustain exploration programs, let alone maintain a public listing. This is a material negative event that deepens the existential threat.

Dixie Gold Inc. is a Canada‑based mineral exploration company with a portfolio of early‑stage projects: - Pickle Crow East Gold Project (Ontario): Acquired February 2026 – roughly 5,147 ha near the historic Pickle Crow Mine; royalty‑free except Crown obligations. The project was touted as a potential high‑impact gold play, but no drilling has been conducted by Dixie Gold. - Soo East Copper Project (Ontario): Staked in November 2025 and expanded to 6,948 ha; located near an emerging copper camp northeast of Sault Ste. Marie. Again, no drilling by the company. - Other assets: A 2.5% NSR on four Red Lake claims sold to Kinross, a lithium lease in the NWT, and a residual ~21% interest in the Preston Uranium JV (expected to dilute further) – all non‑core and unlikely to generate near‑term value.
The company has no revenue, no production, and no plans for imminent drilling.