Canary Gold extends deadline for Rio Madeira option

Executive Summary

• Canary Gold Corp. will meet its second-anniversary obligations under the Rio Madeira property option agreement by paying $200,000 and issuing 800,000 common shares to New Frontiers Gold Mineracao Ltda. by April 1, 2026.
• The company has secured an extension to incur the required $2.5 million in exploration expenditures, pushing the deadline to July 1, 2026, while all other original terms remain unchanged.
• The release also details a recent acquisition of 10 additional mineral tenements (~94,700 hectares) from Talisman Venture Partners Ltd. for $1.7 million, significantly consolidating Canary's land position in Brazil's Madeira River region.

Key Details

• Rio Madeira Option Agreement (New Frontiers Gold Mineracao Ltda.):
• Second-anniversary cash payment: $200,000 due on or before April 1, 2026.
• Share issuance: 800,000 common shares at $0.25/share, representing an aggregate deemed value of $200,000.
• Hold period: Issued shares will be subject to a four-month hold period expiring August 2, 2026, per Canadian Securities Exchange policies.
• Exploration expenditure commitment: Extended deadline to incur at least $2.5 million in expenditures to July 1, 2026.
• Original agreement date: April 1, 2024.
• Talisman Venture Partners Acquisition:
• Acquired 100% interest in 10 additional mineral tenements totaling approximately 94,700 hectares in August 2025.
• Total consideration: $1.7 million, satisfied through staged cash and share payments.
• Royalty terms: Talisman retains a 1.0% net smelter return (NSR) royalty on future production; 0.5% of the NSR may be repurchased by Canary at any time for $1.0 million.
• Strategic Impact: Consolidates a dominant land position in the Madeira River region of Rondonia state, Brazil, described as one of the country's most prospective yet underexplored gold provinces.