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

The most recent news is an Early Warning Report disclosing that former CEO and major shareholder Ryan Kalt has sold an additional 1,043,600 common shares at an average price of ~$0.0306, surrendering his remaining 625,000 stock options for no consideration. As a result, Kalt holds zero common shares and zero options in Dixie Gold, retaining only 6,000,000 share warrants – a position representing 15.90% of the fully diluted equity – but no longer any direct equity stake. The filing marks the culmination of a relentless selling campaign that began in January 2026 and accelerated after Kalt resigned as CEO, President and Corporate Secretary on March 19, 2026.

This is a deeply negative signal. A founder/former CEO liquidating his entire common equity position while the company is in a working‑capital crisis and without a replacement CEO removes any remaining illusion of insider confidence. The fact that the sale was conducted at $0.03/share – a fraction of the $0.05 financing price sought just three weeks earlier – illustrates the market’s extreme discounting of the stock. The simultaneous surrender of 625,000 options for nothing suggests Kalt sees zero near‑term value in those instruments. Although the exit of a large seller could stem perpetual selling pressure, the message is unambiguous: insiders view the equity as worthless. Given the company’s explicit going‑concern warning (May 11, 2026) and the failure to close earlier financing, this news compounds the existential risk.

Dixie Gold Inc. is a micro‑cap mineral exploration company with a portfolio of early‑stage projects. Its most recently assembled asset is the Pickle Crow East Gold Project (256 claims, ~5,147 ha, royalty‑free except Crown royalties) adjacent to the historic Pickle Crow Mine in Ontario’s Uchi Subprovince. The company also holds the Soo East Copper Project (expanded to 316 claims, ~6,948 ha), a legacy Red Lake 2.5% NSR on claims sold to Kinross, and other small interests (Rottenstone gold monitoring, Phoenix lithium leases). There are no mineral resources or reserves.