Coloured Ties Announces Intention to Solicit Proxies to Reconstitute Labrador Board and To Reject Change of Business

Executive Summary

• Concerned Shareholders (≈8.40% of Labrador Gold Corp.) will solicit proxies at the Feb 24, 2026 shareholders’ meeting to replace three directors and reject the proposed change of business to an investment‑issuer model.
• The group proposes four new director nominees—Kulwant Malhi, Ronald Wortel, Jean Lafleur, and Tara Asfour—to re‑orient Labrador toward 100% owned brownfield mineral exploration projects.
• The release details prior board decisions (sale of the Kingsway Project, loss on New Found shares, planned $1 M private placement in Northern Shield Resources) that the shareholders cite as evidence of underperformance and poor governance.

Key Details

• Proxy Fight Objective: Reconstitute the Board by removing James Borland, Trevor Boyd (Kevin Ramsay), and Roger Moss; elect four new directors nominated by the Concerned Shareholders.
• Shareholder Ownership: The Concerned Shareholders collectively control ~8.40% of Labrador’s outstanding common shares.
• Previous Board Actions Cited:
• Kingsway Project Sale (July 9 2024): Sold for 5,263,157 New Found Gold Corp. shares, valued ≈ $20 M.
• Liquidation of New Found Shares (ended Apr 2025): Proceeds $12,188,783 – an ~$8 M loss versus the $20 M implied value; shares closed at $4.40 on Jan 12 2026, representing a further ≈$10 M opportunity cost.
• Proposed $1 M Private Placement in Northern Shield Resources (NRN): Purchase price $0.06 per share – ~33% premium to prior close and ~26% premium to VWAP‑month average; conflict noted due to appointment of Quentin Hennigh as investment advisor to both parties.
• Governance Concerns: Failure to hold the 2025 AGM by the statutory deadline (Sept 27 2025); delayed meeting set for Dec 2 2025, perceived as a tactic to avoid shareholder pressure.
• Proposed New Business Direction: Focus on acquiring 100% interests in advanced brownfield projects; leverage Labrador’s ~US$18 M treasury for mineral exploration rather than pursuing an investment‑issuer hybrid model.
• Nominee Biographies:
• Kulwant Malhi: Entrepreneur, venture capitalist, founder/chairman of BullRun Capital Inc.; experience across biomedical, mineral exploration, and technology commercialization.
• Ronald Wortel: Finance executive; CEO of Goldeni Investment Intelligence; senior mining equity analyst with >30 years industry experience.
• Jean Lafleur: Professional geologist; former VP Exploration at TomaGold Corp., board member at Scandium Canada, technical advisor to multiple exploration firms.
• Tara Asfour: Capital‑markets executive; 12+ years in investor relations, fundraising, and corporate communications within resource/technology sectors.
• Regulatory Filings: An Information Document containing detailed nominee disclosures has been filed on Labrador’s SEDAR+ profile per NI 51‑102 requirements.
• Proxy Solicitation Status: No formal proxy request is being made at this time; the release clarifies that any future solicitation will comply with Canadian securities law and that all costs will be borne by the Concerned Shareholders.

Notable Quotes

“We believe an immediate reconstitution of the Board is needed to ameliorate Labrador's weak performance, to enable the Company to become a respected mineral exploration company led by qualified executives and to create value for all stakeholders.” – Kal Malhi, CEO, Coloured Ties Capital Inc.

Materiality Assessment: Material – Neutral (significant governance change that could materially affect control, strategy, and shareholder value).