Canary Gold Exploration Update - Madeira River Project, Rondonia, Brazil

Executive Summary

• Canary Gold reports the first ~300 m of a planned 20,000‑m systematic drilling program at its Madeira River tenement.
• Early results are consistent with the company’s geological model and support the exploration thesis, though no economic mineralisation has yet been demonstrated.
• The update reiterates the company’s commitment to continue disciplined drilling in 2026 and highlights a recent acquisition of additional tenements (≈94,700 ha) for CAD 1.7 M with a 0.5 % NSR royalty payable to Talisman Venture Partners.

Key Details

• Drilling Progress: ~300 m completed; target total ≈20,000 m.
• Purpose of Phase 1: Test geological model, build dataset for future target refinement and prioritisation.
• Results to Date: Intercepts align with the exploration thesis; no definitive economic grades reported.
• Geological Context: Project lies in a gold‑bearing district with historic artisanal workings (Zélia, Santo Antônio) nearby, indicating regional endowment but not guaranteeing mineralisation on Canary’s licences.
• Future Plans: 2026 drilling campaign will be guided by data collected in this initial phase to focus on the most prospective zones of the tenement package.
• Acquisition Background (August 2025): 100 % interest in ten additional tenements (~94,700 ha) acquired for CAD 1.7 M via staged cash and share payments; Talisman retains a 1.0 % NSR royalty (half repurchasable for CAD 1.0 M, reducing NSR to 0.5 %).
• Qualified Person: Andrew Lee Smith, P.Geo., Executive Director, reviewed and approved the technical information under NI 43‑101.

Notable Quotes

“This phase of drilling is focused on testing our geological model and building the dataset required to guide future exploration,” – Mark Tommasi, President, Canary Gold Corp.

Materiality Assessment: Non-Material – Positive (early‑stage exploratory update with no material financial impact but conveys positive alignment with the company’s exploration strategy).