ERRINGTON METALS CORP. ANNOUNCES C$25 MILLION PRIVATE PLACEMENT OF COMMON SHARES AND FLOW-THROUGH SHARES

Errington Metals Corp. announced a C$25 million private placement managed by Stifel Canada. The offering consists of up to 4,286,000 common shares at $3.50 per share and up to 1,927,000 flow-through shares at $5.19 per share. Proceeds from the common shares will fund continued exploration of the Sudbury Basin Complex and general working capital. The flow-through share proceeds are designated for eligible Canadian and Ontario critical mineral exploration expenditures, with a renunciation deadline of December 31, 2026. An over-allotment option allows agents to purchase up to 15% additional securities. Closing is expected on or about August 11, 2026, subject to TSX Venture Exchange approval. A four-month and one-day hold period applies to the issued shares.

Errington Metals Corp. (EM) has secured financing to address the severe liquidity crisis detailed in its Q1 2026 MD&A, which revealed the company held just $1,775 in cash and reported a working capital deficit of $53,455. The capital raise was anticipated, as management had previously warned of high liquidity risk and the necessity of equity financing to maintain going concern status.

The transaction involves a $3.50 common share price, representing a modest discount to the recent trading range of $3.40 to $3.90, while the $5.19 flow-through price commands a significant premium, reflecting tax incentive demand and management confidence in the project's exploration upside. Proceeds will fund a planned 45,000-metre drill program and metallurgical studies, directly supporting the targeted H2 2026 initial mineral resource estimate (MRE).

The deal results in substantial dilution of approximately 6.2 million new shares, a move deemed necessary to avoid insolvency and advance the flagship project. No strategic investor is attached to this round, with the company instead relying on market and flow-through tax credit investors.

Errington Metals Corp. is a pre-revenue advanced exploration company focused on the Sudbury Basin Project in Ontario, Canada. The project targets Volcanogenic Massive Sulfide (VMS) deposits containing copper, zinc, lead, gold, and silver. The property spans over 12.5 km of strike length within the Sudbury Igneous Complex, near established infrastructure and producing mines.

The company is executing a 45,000-metre drill program in 2026 to expand known mineralization and support an initial MRE. Historical resource estimates by Glencore (effective Dec 31, 2024) exist but have not been verified to current NI 43-101 standards.