Canary Gold begins dual-rig drilling program at Madeira

Executive Summary

• Canary Gold Corp. has commenced its 2026 exploration program at the Madeira Project in Brazil, mobilizing a dual-rig drilling strategy consisting of screw auger and reverse circulation (RC) rigs.
• The program aims to define near-surface mineralization and conduct regional reconnaissance, totaling approximately 20,000 metres of drilling across roughly 400 holes.
• The company also announced a comprehensive update to its corporate website and investor materials to reflect its transition into an active execution phase.

Key Details

• Drilling Program Overview:
  • Total planned drilling: Approximately 20,000 metres.
  • Strategy: Dual-rig approach combining specialized geological definition with rapid regional coverage.
• Screw Auger Drilling (Currently Underway):
  • Rig Status: First rig arrived and is mobilizing to initial collar locations.
  • Technique: Screw auger system optimized for unconsolidated ground conditions to recover high-quality samples from the Mocururu geologic horizon and prospective gravel beds.
  • Target: Definition of high-priority geological zones (Mocururu and gravel beds).
  • Volume: Approximately 5,000 metres across ~100 drill holes.
  • Spacing: Initial grid of 200m x 100m, with flexibility to tighten based on visual observations and assay results.
  • Depth: Shallow drilling to a maximum of ~50 metres per hole.
• Reverse Circulation (RC) Drilling (Commencing Late January):
  • Rig Status: Second rig expected to arrive in the second half of January.
  • Objective: Regional reconnaissance to test broader property extent and identify new geological anomalies; sweeping the broader land package from the original agreement with New Frontiers.
  • Volume: Approximately 15,000 metres across ~300 drill holes.
  • Spacing: Wide-spaced reconnaissance grid of ~2,000m x 1,000m.
  • Depth: Consistent testing of the oxide profile to a maximum of ~50 metres.
  • Exclusion: Drilling of the additional land package associated with the Talisman agreement is not contemplated at this stage.
• Corporate Communications:
  • Completed a comprehensive update of the corporate website and investor presentation.
  • Goal: To clearly communicate the geological framework, exploration strategy, and scale of the land position during the transition to an active execution phase.
• Option Issuance (Administrative Detail):
  • Granted 6,107,500 stock options to directors, officers, and consultants.
  • Exercise Price: 27 cents per common share.
  • Term: Five years from date of grant.
  • Hold Period: Statutory hold period of four months and one day.
  • Regulatory Context: Related party transaction under MI 61-101; exemptions from formal valuation and minority shareholder approval relied upon as fair market value does not exceed 25% of market capitalization.

Notable Quotes

• "As we move into an active drilling phase, it was important that our public-facing materials evolve alongside our operations. The updated website and investor presentation better reflect where the company is today and support clear, consistent communication as we move into what is expected to be a very productive year of exploration." — Mark Tommasi, President of Canary Gold