Arctic Fox closes $1.61M first tranche of placement

• Arctic Fox Lithium Corp. closed the first tranche of a non-brokered private placement, raising $1,618,560 CAD through the issuance of 6,744,000 units at $0.24 per unit.
• Each unit comprises one common share and one warrant exercisable at $0.315 for 24 months.
• Proceeds are allocated to working capital, offering costs, and exploration on the newly acquired Shipshaw REE/Niobium property in Quebec.
• Concurrent board changes include the appointment of Tyler Heathcote as director and Rick Mah as CFO, while Sonny Chew resigned.
• This closing represents the initial tranche of a previously announced $3.0 million financing target.

• The financing provides critical, immediate liquidity to a company that reported only $52,447 in cash as of December 31, 2025.
• The raise is highly dilutive, adding 6.74 million shares to an already expanded float, and introduces a significant warrant overhang at $0.315.
• The news is a direct execution of the February 25, 2026 announcement, making it expected rather than a market surprise.
• While it extends the company's operational runway, it does not alter the fundamental early-stage, pre-resource status of the Shipshaw property.
• The impact is positive for corporate survival but neutral-to-negative for existing equity holders due to continuous dilution and lack of near-term value inflection.

• Arctic Fox Lithium Corp. is a junior exploration company listed on the CSE (AFX) and OTC (O5K).
• Historically focused on lithium assets in Quebec (Pontax North, Kana Lake, Delta Lake), the company has pivoted to Rare Earth Elements (REE) and Niobium.
• The flagship project is the Shipshaw Property in Quebec, located approximately 9 km northwest of the producing Niobec Mine.
• The property covers 2,685.73 hectares and features historical carbonatite/lamprophyre dyke intercepts with grades up to 3.7% TREO and 0.251% Nb2O5.
• The project is in the early exploration stage with no NI 43-101 compliant resource estimate published.
• All three legacy lithium properties are subject to a 2% Net Smelter Return (NSR) royalty.