Golden Arrow Completes Sale of Copper Assets at San Pietro Project

Golden Arrow Resources Corporation announced on August 31, 2026, that it has completed the previously announced sale of its copper assets at the San Pietro Project to Capstone Copper Corp. and a wholly-owned subsidiary.

Under the terms of the transaction, New Golden Exploration Chile SpA (NGE) received 2,200,012 common shares of Capstone as consideration. This share consideration was valued at approximately US$25,000,000, calculated using the 10-day volume-weighted average price ending two business days before closing and the Bank of Canada exchange rate. Golden Arrow indirectly owns 75.019% of NGE, while Sociedad de Servicios Andinos SPA owns the remaining 24.981%.

Golden Arrow’s subsidiary, New Golden Explorations Atlantida Ltd., received 1,666,914 Capstone shares. From the total consideration, 165,042 Capstone shares were withheld for Chilean taxes, and 66,000 Capstone shares were deducted to cover a US$750,000 advisory fee paid to Southern Cone Partners. Sociedad de Servicios Andinos SPA received 533,098 Capstone shares. Expected transaction costs and taxes totaling approximately $6,550,000 were also deducted from the consideration. Shareholder approval was obtained on August 21, 2026, and the transaction closed on August 31, 2026.

The release contains no new exploration results, no updated resource estimate, and no new financial statements. The CEO stated that the treasury will allow expanded exploration in Chile and Argentina, including planning the first drill program at the Atakama gold project in autumn 2026.

Golden Arrow Resources Corporation announced the closing of a transaction originally disclosed on June 23, 2026, and approved by shareholders on August 21, 2026. The material terms of the deal were previously disclosed and remained unchanged in this release.

The completion converts Golden Arrow’s interest in the San Pietro copper assets into a liquid position in Capstone shares. This development is significant for the company, which held only CAD 284,502 in cash as of June 30, 2026, and had issued a going-concern warning in its latest Management’s Discussion and Analysis.

The market was already aware that the deal was expected to close by late August or Q3 2026. Consequently, the stock had already repriced from approximately CAD 0.09–0.10 prior to the June announcement to CAD 0.12 immediately following the August 21 shareholder approval.

Golden Arrow Resources Corporation (GRG) is a mineral exploration company listed on the TSXV, FSE, and OTCQB, affiliated with the resource-focused management organization Grosso Group.

Prior to the Capstone transaction, the San Pietro Project in Chile served as the company's flagship asset. The prior inferred mineral resource estimate for the Rincones and Colla copper-gold-iron-cobalt deposits, as shown in the investor presentation, was:

• 492 million tonnes at 0.23% Cu, 0.05 g/t Au, 99 ppm Co, and 14.43% Fe
• Reported as 2.5 billion pounds of copper and 770,000 ounces of gold at a 0.41% CuEq presentation
• Technical report dated April 2, 2025

That resource was tied to the copper assets sold to Capstone and is not retained by Golden Arrow after this transaction.

Following the sale, the company’s focus shifts to the retained Atakama gold project, formerly part of San Pietro. The company retained more than 9,000 hectares of gold-focused concessions. Exploration work has identified four near-surface gold targets:

• Paula
• Lolita Norte
• Dos Marias
• Cerro Sur

Golden Arrow also retains a 1.5% net smelter return royalty on Mogotes Metals’ Filo Sur project, with Mogotes holding an option to purchase 0.5% of the royalty for $2 million.

The Atakama gold project has surface trench results and rock chip sampling but no disclosed mineral resource estimate in the provided materials.