Saga Metals Corp. (‘SAGA’ or the ‘Company’) (TSXV: SAGA,OTC:SAGMF) (OTCQB: SAGMF) (FSE: 20H), a North American exploration company focused on critical mineral discovery, is pleased to confirm the full mobilization of SAGA’s exploration team, drilling crews and additional equipment for the continuation of the major diamond drill program targeting a maiden Mineral Resource Estimate (‘MRE’) at the 100% owned Radar Titanium-Vanadium-Iron (Ti-V-Fe) Project in southeastern Labrador, Canada.

Personnel are expected to arrive in Cartwright, Labrador, on January 16th, and drilling will commence shortly thereafter.

Mineral Resource Estimate Drill Program Highlights To-Date:

• 2 of 8 diamond drill holes assayed (2025 Trapper Zone); full-hole assays from surface:
  • R-0008: 269.36 m @ 36.21% Fe₂O₃, 6.57% TiO₂, 0.244% V₂O₅
  • R-0009: 296.47 m @ 39.75% Fe₂O₃, 7.46% TiO₂, 0.25% V₂O₅
• TiO₂ strength:
  • 46.2% of samples > 7% TiO₂ (majority are 2 m samples)
  • 23.2% of samples > 10% TiO₂ (majority are 2 m samples)
• V₂O₅ strength:
  • 57.7% of samples > 0.2% V₂O₅ (majority are 2 m samples)
  • 30.6% of samples > 0.3% V₂O₅ (majority are 2 m samples)
• Highest TiO₂ to date: 13.30% TiO₂ 2 m assay (core 1800528)
• Exceptional intercepts including: 87.20 m @ 50.67% Fe₂O₃ + 10.15% TiO₂ + 0.339% V₂O₅
• Step-change Trapper North vs. Hawkeye: best full-hole metrics up Fe₂O₃ +124%, TiO₂ +105.9%, V₂O₅ +36.9%
• Significant increase in overall oxide concentration from Trapper vs Hawkeye.
• Next drill assays: additional drill hole assays expected to be released next week.

Kicking off the 2026 Phase of MRE Drilling

The initial focus for the 2026 Radar Project drill program will be in the southern section of the Trapper Zone, also known as ‘Trapper South.’ SAGA’s geological team and Gladiator’s drill crews will take advantage of the extensive trail network created in the summer of 2025, allowing for an easy traverse for snowmobiles and the excavator used to move the drill. Drilling will begin at the southeastern extent of Trapper South, targeting approximately 30 holes (7,500 m). The program will then advance hole by hole back toward Trapper North, positioning the team to complete the remainder of the MRE drill campaign by spring.

Figure 1: Location of the initial kick off to 2026’s phase of drilling at the Trapper Zone, showing the total magnetic intensity (‘TMI’) of the 2025 Trapper Zone ground magnetic survey as well as the grid for the MRE drill program to be completed in 2026.

As seen in Figure 2 below, SAGA will concentrate January drilling on the southeastern-most portion of the Trapper South anomalies. The program will continue to execute the MRE strategy, with drill holes spaced 100 metres apart along 38° azimuth section lines and drilled at a 45° dip. This includes continuing drill holes along the white grid lines shown in Figure 1 above, known as cross-sections. Planned hole depths will average with a minimum of ~150 metres of vertical depth coverage to support confidence in the mineral resource model.

Figure 2: Trapper South depicting the TMI of the 2025 Trapper Zone ground magnetic survey, as well as cross-section S-11 completed in Q4 2025, and the initial area of concentration for the 2026 drill program.

Leveraging observations from the 2025 Phase 1 program and initial assay results, the team can now apply robust geochemical correlations and structural tracking across all incoming core, informed by a detailed review of the first eight drill holes. Special attention will remain on structural measurements and the proper orientated core measurements so the team can continue to model the ore body in three dimensions.

Trapper South Summary

Drilling commencing in January 2026 will build on the successful drilling completed in Trapper South in December of 2025. All four drill holes (R-0012, R-0013, R-0014, and R-0015) completed on cross-section S-11 in Trapper South intersected significant oxide layering, including:

• R-0012 – intersected the eastern side of the main oxide layering with a cumulative 59.88 m of rhythmic oxide layering and 13.67 m of intercumulus oxides.
• R-0013 intersected a cumulative 174.87 m of oxide comprised of 135.87 m of rhythmic oxide layering and 39 m of intercumulus oxides.
• R-0014: cumulated intersections of 69.54 meters of oxide layering.
• R-0015: cumulated intersections of 146 meters of tightly banded rhythmic oxide layering sequences.

The initial cross-section (S-11) of Trapper South has provided vital structural information for the southern half of the property and insights into the regional structural geometry. Analysis suggests that the two anomalies (East and West) were initially connected but have since been separated by a combination of folding and faulting, specifically a left-lateral strike-slip reverse fault.

Figure 3: Outlines a left-lateral, strike-slip reverse fault. The hanging wall (East anomaly) is offset primarily relative to the (West) Footwall. The map shows analogs of the geometric pattern observed in the core in both R-0015 and R-0014. Similar offsets were also viewed in both R-0013 and R-0012.

Drilling on Section S-11 has defined structural geometry, enabling more efficient future drilling. Hole R-0014 proved particularly informative, confirming multiple instances of the reverse faults in the core. This has enhanced the team’s understanding of the structural geometry of the Trapper South anomaly, the genesis of the Dykes River intrusion, and the historical connectivity between the two limbs.

On the surface in Trapper South, the first-pass cross-section (Section S-11) across the width of the anomalies has defined two linear trends and discrete sets of oxide layering sequences:

• Western anomaly: Striking 1.4 km with a width of approximately 150 m.
• Eastern anomaly: Striking 700 m with a width of approximately 150 m.

Michael Garagan, CGO & Director of Saga Metals, commented,

‘We are incredibly eager to remobilize our crew back to the Radar Ti-V-Fe Project in Labrador as we kick off the 2026 phase of our maiden Mineral Resource Estimate drill program at the Trapper Zone. Building on the outstanding success of the 2025 drilling—highlighted by exceptional intercepts such as 269.36 m @ 6.57% TiO₂ and 296.47 m @ 7.46% TiO₂ in Trapper North, along with numerous high-grade samples exceeding 10% TiO₂ and strong vanadium values—this return to the field represents a pivotal moment. The recent assays confirm the district-scale potential of this large layered mafic intrusion, with oxide layering validated over significant strike lengths and structural insights from Trapper South enhancing our targeting efficiency. We are ready to advance in Trapper South, complete the planned ~7,500 meters of drilling, and move to Trapper North in an effort to deliver the data needed for our first resource estimate, positioning Radar as a strategic North American source of critical titanium, vanadium, and iron for defense, aerospace, and clean energy applications.’

About the Radar Ti-V-Fe Property

The Radar Property spans 24,175 hectares and hosts the entire Dykes River intrusive complex (~160 km²), a unique position among Western explorers. Geological mapping, geophysics, and trenching have already confirmed oxide layering across more than 20 km of strike length, with mineralization open for expansion.

Figure 4: Radar Property map, depicting magnetic anomalies, oxide layering and the site of the 2025 drill programs. The Property is well serviced by road access and is conveniently located near the town of Cartwright, Labrador. A compilation of historical aeromagnetic anomalies is overlaid by ground-based geophysics, as shown.

Vanadiferous titanomagnetite (‘VTM’) mineralization at Radar is comparable to global Fe–Ti–V systems such as Panzhihua (China), Bushveld (South Africa), and Tellnes (Norway), positioning the Project as a potential strategic future supplier of titanium, vanadium, and iron to North American markets.

Figure 5: Radar Project’s prospective oxide layering zone validated over ~16 km strike length through Fall 2025 drilling, as shown on a compilation of historical airborne geophysics as well as ground-based geophysics in the Hawkeye and Trapper zones completed by SAGA in the 2024/2025 field programs. SAGA has demonstrated the reliability of the regional airborne magnetic surveys after ground-truthing and drilling in the 2024 and 2025 field programs.

Corporate Update

The Company has entered into a debt settlement agreement with an arm’s length creditor to settle outstanding indebtedness in the amount of $178,750 (the ‘Debt’) through the issuance of 275,000 common shares (the ‘Shares’) at a deemed price of $0.65 per Share (the ‘Debt Settlement’). The Debt accrued from the purchase of two vehicles used for exploration on the Company’s properties.

The board of directors determined that the Debt Settlement is in the best interests of the Company as it will preserve cash for exploration activities and strengthen the Company’s balance sheet. The Debt Settlement remains subject to TSX Venture Exchange (the ‘TSXV’) approval. The Shares will be subject to a hold period of four months and one day from issuance in accordance with applicable securities laws and TSXV policies.

Qualified Person

Paul J. McGuigan, P. Geo., is an Independent Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the technical information disclosed in this news release.

Technical Information

Samples were cut by Company personnel at SAGA’s core facility in Cartwright, Labrador. Diamond drill core was sawed and then sampled intervals. The drill hole core diameter utilized was NQ.

Core samples have been prepared and analyzed at the Impact Global Solutions (IGS) laboratory facility in Montreal, Quebec. Blanks, duplicates, and certified reference standards are inserted into the sample stream to monitor laboratory performance. Crush rejects, and pulps are kept and stored in a secure storage facility for future assay verification. The Company utilizes a rigorous, industry-standard QA/QC program.

About Saga Metals Corp.

Saga Metals Corp. is a North American mining company focused on the exploration and discovery of a diversified suite of critical minerals that support the North American transition to supply security. The Radar Ti-V-Fe Project comprises 24,175 hectares and entirely encloses the Dykes River intrusive complex, mapped at 160 km² on the surface near Cartwright, Labrador. Exploration to date, including 4,250 m of drilling, has confirmed a large, mineralized layered mafic intrusion hosting vanadiferous titanomagnetite (VTM) and ilmenite mineralization with strong grades of titanium and vanadium.

The Double Mer Uranium Project, also in Labrador, covers 25,600 hectares and features uranium radiometrics that highlight an 18km east-west trend, with a confirmed 14km section producing samples as high as 0.428% U3O8. Uranium uranophane was identified in several areas of highest radiometric response (2024 Double Mer Technical Report).

Additionally, SAGA owns the Legacy Lithium Property in Quebec’s Eeyou Istchee James Bay region. This project, developed in partnership with Rio Tinto, has been expanded through the acquisition of the Amirault Lithium Project. Together, these properties cover 65,849 hectares and share significant geological continuity with other major players in the area, including Rio Tinto, Winsome Resources, Azimut Exploration, and Loyal Metals.

With a portfolio spanning key commodities critical to the clean energy future, SAGA is strategically positioned to play an essential role in critical mineral security.

On Behalf of the Board of Directors

Mike Stier, Chief Executive Officer

For more information, contact:

Rob Guzman, Investor Relations
Saga Metals Corp.
Tel: +1 (844) 724-2638
Email: rob@sagametals.com
www.sagametals.com

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Disclaimer
This news release contains forward-looking statements within the meaning of applicable securities laws that are not historical facts. Forward-looking statements are often identified by terms such as ‘will’, ‘may’, ‘should’, ‘anticipates’, ‘expects’, ‘believes’, and similar expressions or the negative of these words or other comparable terminology. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. In particular, this news release contains forward-looking information pertaining to the Company’s Radar Project. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, environmental risks, limitations on insurance coverage, inherent risks and uncertainties involved in the mineral exploration and development industry, particularly given the early-stage nature of the Company’s assets, and the risks detailed in the Company’s continuous disclosure filings with securities regulations from time to time, available under its SEDAR+ profile at www.sedarplus.ca. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by applicable law.

Photos accompanying this announcement are available at:
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https://www.globenewswire.com/NewsRoom/AttachmentNg/a2630189-91d0-48ee-b96e-0a4207f78500

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Rio Silver Inc. (‘Rio Silver’ or the ‘Company’) (TSX-V: RYO | OTC: RYOOF) is pleased to announce the launch of its newly redesigned corporate website and the expansion of its official social media platforms, marking an important step forward as the Company advances its high-grade silver portfolio during a period of record silver prices.

The new website provides shareholders, stakeholders, and the broader investment community with a clear, modern, and comprehensive view of Rio Silver’s strategy, assets, and progress as the Company executes on a disciplined path toward development in Peru, one of the world’s premier silver jurisdictions.

Stay Connected with Rio Silver

Shareholders and stakeholders are invited to visit the Company’s new website at www.riosilverinc.com, where they can sign up to receive news releases and corporate updates directly as Rio Silver continues to advance its projects.

Investors are also encouraged to follow Rio Silver on its official social media platforms for timely updates and insights as the story continues to unfold:

These channels are intended to complement the Company’s formal disclosure practices by providing additional visibility into ongoing corporate and project developments.

The redesigned website features improved navigation, enhanced project content, and streamlined access to corporate information, reflecting Rio Silver’s evolution and commitment to clear communication as it moves into the next phase of growth. The expanded digital presence comes at a time when silver prices are at all-time highs and investor focus on high-quality silver development opportunities is increasing.

‘As silver markets reach record levels and fundamentals continue to strengthen, it was important that Rio Silver’s digital presence accurately reflect the quality of our assets, the clarity of our strategy, and the direction we are taking as a Company,’ said Chris Verrico, President and Chief Executive Officer of Rio Silver. ‘This platform gives shareholders a clearer window into our progress and reinforces our commitment to transparency, disciplined execution, and building a high-grade silver company positioned for the next phase of this cycle.’

The launch of the new website and expanded social media presence supports Rio Silver’s objective of maintaining consistent engagement with shareholders while providing a centralized, up-to-date source of information as the Company advances its flagship Maria Norte Project and evaluates additional growth opportunities.

About Rio Silver Inc.

Rio Silver Inc. (TSX-V: RYO | OTC: RYOOF) is a Canadian resource company advancing high-grade, silver-dominant assets in Peru, the world’s second-largest silver producer. The Company is focused on near-term development opportunities within proven mineral belts and is supported by a seasoned technical and operational team with deep experience in Peruvian geology, underground mining, and district-scale exploration. With a clear development strategy and a growing portfolio of highly prospective silver assets, Rio Silver is establishing the foundation to become one of Peru’s next emerging silver producers.

Learn more at: www.riosilverinc.com

ON BEHALF OF THE BOARD OF DIRECTORS OF Rio Silver INC.

Chris Verrico
Director, President and Chief Executive Officer

To learn more or engage directly with the Company, please contact:
Christopher Verrico, President and CEO
Tel: (604) 762-4448
Email: chris.verrico@riosilverinc.com
Website: www.riosilverinc.com

Cautionary Note Regarding Forward-Looking Information

This news release contains ‘forward-looking statements’ within the meaning of applicable Canadian securities laws. All statements in this release that are not historical facts are forward-looking statements and are based on expectations and assumptions as of the date of this release. Forward-looking statements relate to future events or performance and include, but are not limited to, statements regarding the Company’s corporate strategy, communications initiatives, planned exploration and development activities, and anticipated future updates.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied. These risks include, but are not limited to, operational risks, regulatory risks, availability of financing, commodity price fluctuations, and general economic conditions. Additional risks are described in the Company’s filings available on SEDAR+ at www.sedarplus.ca.

Readers are cautioned not to place undue reliance on forward-looking statements. Rio Silver does not undertake to update forward-looking statements except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

HIGHLIGHTS:

• Production guidance of 50,000-55,000 oz gold
• Cash Costs of $1,850-$1,950/oz gold and All In Sustaining Costs of $2,025-$2,125/oz gold
• Pre-stripping of Veta Madre open pit expansion at La Colorada
• $27M exploration program funded from operating cash flow

Heliostar Metals Ltd. (TSXV: HSTR,OTC:HSTXF) (OTCQX: HSTXF) (FSE: RGG1) (‘Heliostar’ or the ‘Company’) is pleased to provide production and cost guidance for 2026 as well as details of growth plans across the portfolio. The Company plans to produce 50,000-55,000 ounces of gold at by-product cash costs of $1,850-$1,950oz gold and a consolidated All-In Sustaining Cost (AISC) of $2,025-$2,125oz gold. Heliostar will utilize the cash generated from ongoing operations to continue to invest in exploration and growth initiatives across the Company’s portfolio, including advancement of the flagship Ana Paula development project towards production.

1. Cash costs and AISC are non-GAAP measures. Please refer to the ‘Non-GAAP Financial Measures’ section of this news release for further information on this measure.
2. AISC is based on the World Gold Council definition.
3. Mine site AISC includes only the portion of corporate G&A allocated to the operating mines. Consolidated G&A includes the aforementioned corporate G&A allocated to the operating mines plus all corporate stock-based compensation.
4. Annual average exchange rate from all costs based on Mexican peso to US dollar (18 pesos per one dollar).

The La Colorada mine (‘La Colorada’) will continue to produce metals from processing Junkyard and other stockpiles with a focus on additional re-leaching opportunities at the operation. The San Agustin mine (‘San Agustin’) successfully resumed mining operations in December 2025 (see the press release dated December 17, 2025) and will continue mining, crushing, stacking and leaching activities to produce gold and silver through 2026 and beyond.

La Colorada

In 2026, the Company expects to produce 20,000-22,300 ounces of gold at an AISC of $1,775-$1,875 per ounce of gold. This will come from crushing and stacking stockpiles, including the Junkyard Stockpile ore, a portion of the Truckshop Stockpile and re-leaching opportunities.

Development of the Veta Madre open pit expansion project is planned to commence in early Q3. The Company plans to conduct pre-stripping of 11 million tonnes of waste in 2026 to access the 43,000 ounces of in-situ gold in reserves at Veta Madre starting in the first half of 2027. This is a key growth initiative that will drive increased production at the mine in 2027.

De-risking drilling of Veta Madre and Veta Madre Plus (a planned cutback and possible expansion, respectively) is ongoing. The results of this program will provide technical information for a refined pit design and may lead to additional mineral reserves. Heliostar has also budgeted for regional exploration beyond the main mine trend at La Colorada with the aim of unlocking the full geologic potential of the larger, under-explored land package. In addition, the Company has planned for a dedicated drill program in the second half of 2026 to investigate the underground potential below the existing open pits at La Colorada. Heliostar intends to invest up to $5.8M in resource development and exploration activities at La Colorada in 2026.

San Agustin

After successfully restarting open pit production in December 2025, the operation will produce at steady state through 2026 and beyond. The Company expects the mine to produce 30,000-32,700 ounces of gold at a site-level, by-product AISC of $2,150-$2,250 per ounce of gold. The increase in cost compared to that shown in the January 2025 Feasibility Study is driven by general inflation, higher contractor mining costs and allocation of corporate general and administrative costs.

Drilling focused on expanding the oxide reserves at the Corner Area and around the existing open pit is ongoing, with 13,000 metres budgeted in 2026. In addition, Heliostar has planned up to 5,000 metres of drilling to investigate the high-grade portions of the large, polymetallic sulphide deposit that sits both adjacent to and beneath the oxides currently being mined. Further, $2.0M has been earmarked for exploration of Heliostar’s claims across the district, including early-stage exploration of the silver-rich Consejo veins mapped at surface. The Company plans to invest up to $9.7M through this year to unlock the full geologic potential of the property.

Ana Paula

The ongoing 20,000 metre infill and expansion drill program at Ana Paula will continue through Q1 2026. Given the success to date, an additional 6,500 metres have been approved to continue to upgrade inferred material currently in the Preliminary Economic Assessment mine plan. Heliostar has commenced work to complete a Feasibility Study for Ana Paula, scheduled to be completed in the first half of 2027. This important milestone will fully define the construction and operating plans to develop a 100k ounce per year gold mine.

Heliostar plans to continue to advance the existing 412 metre production-scale decline into the Ana Paula deposit in 2026. This work is planned to start in Q3 and is part of a broader de-risking and early works program to support production at the mine in the second half of 2028. The completion of the decline will also provide a platform for underground drilling to continue to expand the Ana Paula deposit at depth and explore for the causative intrusion and potential mineralized contact skarn deposit.

In addition, $1.5M has been budgeted for early-stage, regional exploration at Ana Paula. This includes a drone magnetics survey, ground-based gravity survey, property-wide soil sampling and geologic mapping. The Ana Paula project sits on a largely unexplored 56,334ha land package – one of the largest in the prolific and highly prospective Guererro Gold Belt. In total, Heliostar plans to invest $6.6M in resource development and regional exploration at Ana Paula in 2026, in addition to the $15.0M required to extend the decline.

Other Properties

At Cerro del Gallo, Heliostar is advancing permitting discussions alongside active engagement with the local communities and social benchmarking surveys. The Company’s workplan includes an update of the geologic model to allow flotation trade-off testing, further metallurgical test work of the sulphide portion of the deposit and hydrological data collection.

Unga and San Antonio will see modest exploration and metallurgical programs, respectively.

The total planned exploration, development and study expenditure for these properties is $4.9M.

Statement of Qualified Persons

Gregg Bush, P.Eng., Qualified Person, as such term is defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed the scientific and technical information that forms the basis for this news release and has approved the disclosure herein. Mr. Bush is employed as Chief Operating Officer of the Company.

Non-GAAP Financial Measures

Management believes that the reported non-GAAP financial measures will enable certain investors to better evaluate the Company’s performance, liquidity, and ability to generate cash flow. These measures do not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently. Additional details of the Company’s calculation of Cash Costs and All-In Sustaining Costs can be found in the most recent MD&A.

About Heliostar Metals Ltd.

Heliostar is a gold producer with production from operating mines in Mexico. This includes the La Colorada Mine in Sonora and San Agustin Mine in Durango. The Company also has a strong portfolio of development projects in Mexico and the USA. These include the Ana Paula project in Guerrero, the Cerro del Gallo project in Guanajuato, the San Antonio project in Baja Sur and the Unga project in Alaska.

FOR ADDITIONAL INFORMATION PLEASE CONTACT:

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Information

This news release includes certain ‘Forward-Looking Statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995 and ‘forward-looking information’ under applicable Canadian securities laws. When used in this news release, the words ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘target’, ‘plan’, ‘forecast’, ‘may’, ‘would’, ‘could’, ‘schedule’ and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things, the Company’s plans, prospects and business strategies; the Company’s guidance on the timing and amount of future production and its expectations regarding the results of operations; the completion of additional studies, including and the Feasibility Study for Ana Paula; exploration and metallurgical programs; and expectations for other economic, business, and/or competitive factors.

Forward-looking statements and forward-looking information relating to the terms and completion of the Facility, any future mineral production, liquidity, and future exploration plans are based on management’s reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the receipt of necessary approvals, price of metals; no escalation in the severity of public health crises or ongoing military conflicts; costs of exploration and development; the estimated costs of development of exploration projects; and the Company’s ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.

These statements reflect the Company’s respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political, and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or forward-looking information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: precious metals price volatility; risks associated with the conduct of the Company’s mining activities in foreign jurisdictions; regulatory, consent or permitting delays; risks relating to reliance on the Company’s management team and outside contractors; risks regarding exploration and mining activities; the Company’s inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of public health crises; the economic and financial implications of public health crises, ongoing military conflicts and general economic factors to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company’s interactions with surrounding communities; the Company’s ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption ‘Risk Factors’ in the Company’s public disclosure documents. Readers are cautioned against attributing undue certainty to forward-looking statements or forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280186

CALGARY, AB / ACCESS Newswire / January 13, 2026 / Valeura Energy Inc. (TSX:VLE,OTC:VLERF)(OTCQX:VLERF) (‘Valeura’ or the ‘Company’) announces: (i) the Company’s Q4 2025 performance was in line with its guidance outlook for 2025 and resulted in a new record cash position; (ii) completion of a successful drilling campaign at Block B5/27 drove strong ongoing oil production and is expected to contribute to reserves replacement; and (iii) a guidance outlook for 2026 supporting its objective to continue generating long-term value for shareholders.

Q4 and Full Year 2025 Highlights

• Record cash position of US$305.7 million as at 31 December 2025 with no debt;

• Oil production averaged 24,721 bbls/d in Q4 2025, resulting in full year average oil production of 23,242 bbls/d⁽¹⁾ for 2025;

• 2.523 million bbls of oil were sold in Q4 2025, with 8.466 million bbls sold for the full year 2025;

• Price realisations in Q4 2025 averaged US$64.0/bbl, resulting in revenue of US$161.4 million, and US$594.4 million of revenue for the full year 2025;

• Greenhouse gas (‘GHG’) intensity reduced by 13% for full year 2025, yielding a 30% reduction since Valeura originally acquired its Thailand portfolio in 2023; and

• Nine production-oriented development wells were completed at the Jasmine and Ban Yen fields in Q4 2025 with 100% success rate, including a new record length for a horizontal well in the Gulf of Thailand.

2026 Guidance Highlights

• Full year oil production mid-point of 21,000 bbls/d⁽¹⁾;

• Capex and exploration spending mid-point of US$185 million, including approximately US$70 million associated with the Wassana field redevelopment; and

• Adjusted Opex mid-point of US$205 million⁽²⁾.

⁽¹⁾ Working interest share production, before royalties.

⁽²⁾ Adjusted Opex is a non-IFRS financial measure, more fully described in Valeura’s Management’s Discussion and Analysis dated 14 November 2025. Includes lease spending of US$25 million.

Dr. Sean Guest, President and CEO commented:

‘We closed out 2025 with strong production performance and an even stronger financial position. Our Q4 drilling programme at Jasmine and Ban Yen was ambitious and innovative, and delivered a 100% success rate, with all wells being completed as producers. All across the business, our team remains committed to this type of world class performance and I believe this is reflected in the continual strengthening of our balance sheet, which now includes over US$300 million in cash, and no debt.

That commitment to excellence is also apparent in our strong safety performance and positive direction of travel on key environmental, social, and governance metrics. We saw no deviations from our high standards during the year and continue to show progress in our GHG intensity, which has now been reduced by approximately 30% under Valeura’s operatorship.

As we raise our sights to the year ahead, our long-term objective of delivering 20 – 25 mbbls/d⁽¹⁾ from our four producing assets remains intact, with this year’s performance expected around 21 mbbls/d⁽¹⁾, a number we see as a lull in advance of the start-up of our Wassana field redevelopment, which remains on track for first oil production in Q2 2027.

We continue to aggressively pursue other growth ambitions as well. The spirit of collaboration is strong between our team and our operating partners both in the large farm-in blocks in the Gulf of Thailand, and in our deep gas play in Türkiye where testing operations are now underway.

Our aspirations to grow inorganically are continuing as a priority. We believed that our appetite for larger, more transformative deals is well-supported, both by the financial wherewithal we bring to bear, and by the rich opportunity set we see emerging within our core Asia-Pacific region.’

⁽¹⁾ Working interest share oil production, before royalties.

Q4 and Full Year 2025 Overview
Working interest share oil production before royalties averaged 24.7 mbbls/d in Q4 2025. This was an increase of 7.6% over the prior quarter, reflecting the impact of new oil production wells coming on stream at Block B5/27, in addition to ongoing steady operations at the Company’s other producing fields. On a full year basis, working interest share oil production before royalties was higher as well, averaging 23.2 mbbls/d in 2025, an increase of 1.8% over 2024.

Oil sales totalled 2.523 million bbls in Q4 2025, which was higher than the 2.274 million bbls produced in the quarter, as a result of sales from crude oil held in inventory at the beginning of the quarter. The resultant revenue was US$161.4 million, based on an average sales price of US$64.0/bbl. The Company continues to realise a premium to the benchmark Brent crude oil price. For the full year 2025, the effect of quarterly over-lift / under-lift positions is negligible, with oil sales totalling 8.466 million bbls, a figure which is very close to the full year’s production of 8.483 million bbls. Valeura’s average 2025 sales price was US$70.2/bbl.

Valeura’s cash position strengthened to a new high of US$305.7 million at 31 December 2025, with no debt.

Operations Update
Operations progressed safely throughout 2025, and with no deviations from the Company’s high standards for environmental, social, and governance stewardship. Of note, Valeura is continuing to pursue efficiency gains across its portfolio that have a positive impact on the Company’s GHG emissions. Valeura estimates that its GHG intensity has reduced by 13% compared to the Company’s 2024 performance, and overall has achieved a 30% reduction since originally acquiring its Thailand portfolio.

Construction activities of a new-build central processing platform (‘CPP’) for the Wassana field redevelopment are progressing ahead of schedule. The project is now approximately 45% complete, underpinning management’s confidence in achieving first oil production from the redeveloped Wassana field (100% operated interest) on time, as planned, in Q2 2027. Moreover, with the majority of project costs either locked in or subject to fixed-price contracts, the Wassana field redevelopment project also remains on budget.

At the Company’s deep gas play in the Thrace basin of Türkiye, Transatlantic Petroleum LLC (‘Transatlantic’), who are conducting operations on Valeura’s behalf, have re-entered and hydraulically stimulated the Devepinar-1 well. Gas has been continually produced to surface through the well’s casing for over three weeks. With this success, Transatlantic has opted to continue work on the well, and is now installing production tubing to facilitate a longer-term production test. Transatlantic has satisfied its earning requirements and is now entitled to a 50% undivided working interest in the western portion of the Company’s lands, as further described in Valeura’s 15 October 2025 announcement. Once approved by the regulator, Transatlantic will hold a 50.0% working interest in the western portion of the Company’s lands, Valeura will hold 31.5%, and Pinnacle Turkey, Inc. will hold the remaining 18.5%. Valeura’s working interest in the eastern portion of the lands (Banarli licences) remains at 100%, subject to Transatlantic completing the drilling and testing of a new well. The Company intends to release more details on the Devepinar-1 well test and the future plans for the deep gas play later in Q1 2026.

Block B5/27 Drilling
Valeura has just completed the drilling of one deviated and eight horizontal wells on the Jasmine and Ban Yen fields at Block B5/27 in the Gulf of Thailand (100% operated interest). The drilling programme primarily focused on accessing unswept oil accumulations within producing reservoirs. All wells were successful and have been completed as producers. As a result, oil production rates before royalties from Block B5/27 have increased from approximately 7,300 bbls/d over the seven-day period prior to start of the drilling programme, to recent rates of approximately 8,600 bbls/d over the seven-day period immediately following the drilling programme.

Several of the wells were engineered to intersect additional appraisal targets while drilling toward their primary development targets. As a result, Valeura has identified various additional oil accumulations which will form the basis of future infill drilling campaigns on Block B5/27. This success is expected to add to the ultimate production potential of the block, which has already exceeded its production expectations many times over, and has seen its economic field life extended every year under Valeura’s operatorship.

Since taking over operatorship of its Thai portfolio in 2023, Valeura has been introducing new technologies and drilling approaches which are expected to increase the ultimate recovery of the fields and lower costs. One well in the recent drilling programme, JSB-28ST2H, achieved a new record as the longest horizontal well interval ever drilled in the Gulf of Thailand, at 3,875′. In addition, two of the wells drilled from the Jasmine B platform used a novel new approach whereby the shallower sections of the pre-existing wells were re-used, with the new well bores being drilled as sidetracks through the existing 7′ casing. This approach reduces drilling time and mitigates certain downhole drilling risks. Further, all horizontal wells drilled in this campaign were completed using autonomous inflow control devices which reduces the inflow of non-oil fluids into the wellbore. This technology has now been adopted extensively by Valeura as a value-enhancing innovation, across all its Gulf of Thailand assets.

2026 Work Programme andGuidance Synopsis
Valeura currently has one drill rig on contract, with a charter term spanning January through August 2026. The Company’s planned work programme for 2026 entails drilling an aggregate of 16 development and appraisal wells on the Jasmine, Nong Yao, and Manora fields. The overall objective of the development and appraisal programme is to mitigate natural production declines while also continuing the Company’s multi-year performance of adding reserves. The base plan also includes the planned drilling of two exploration wells across its operated Gulf of Thailand portfolio.

The Company is planning total capex and exploration spending of US$175 – 195 million in 2026. This amount includes approximately US$70 million for the completion of construction and installation of the new CPP at the Wassana field, in preparation for development drilling in Q1 2027. The Company is planning exploration expenditure of approximately US$7 million.

Valeura continues to model that its portfolio of four producing Gulf of Thailand fields will deliver working interest share oil production before royalties within the range of 20,000 – 25,000 bbls/d into the 2030’s. The Company’s 2026 work programme is in line with this expectation, with full year average production guidance of 19,500 – 22,500 bbls/d, or a mid-point of 21,000 bbls/d (working interest share, before royalties).

Adjusted opex in 2026 is forecast as US$190 – 220 million and at the midpoint would be the lowest opex that the Company has achieved since assuming operatorship in Thailand. Of note, adjusted opex guidance includes anticipated spending of approximately US$25 million on leases related to floating production, storage, and offloading vessels employed across the Company’s operations.

The Company’s production and capex forecast is predicated on the Company having one drilling rig on contract for approximately eight months of the year. Should prevailing economic conditions warrant revising the drilling programme to include more drilling, Valeura would update its guidance expectations accordingly.

Valeura is also actively working with PTT Exploration and Production Plc (‘PTTEP’) to pursue both exploration and development planning on Blocks G1/65 and G3/65 in the Gulf of Thailand, where Valeura is farming in to earn a 40% non-operated working interest (the ‘Farm-in Transaction’). High priority work streams are focussed on the Bussabong gas development area, which could result in an investment decision in 2026, and the Nong Yao northeast oil exploration area, to define a suitable timeframe for exploration drilling. Upon completion of the Farm-in Transaction, Valeura intends to more fully articulate a work programme for both blocks and will update the guidance at that time. Completion of the Farm-in Transaction requires government approval, which is expected following Thailand’s general election in Q1 2026.

Upcoming Announcements
Valeura intends to announce the results of a third-party reserves and resources evaluation as of 31 December 2025 in approximately the second half of February 2026. Thereafter, the Company plans to release its full audited financial and operating results for the year ended 31 December 2025 on approximately 18 March 2026.

For further information, please contact:

Valeura Energy Inc. (General Corporate Enquiries)+65 6373 6940
Sean Guest, President and CEO
Yacine Ben-Meriem, CFO
Contact@valeuraenergy.com

Valeura Energy Inc. (Investor and Media Enquiries) +1 403 975 6752 / +44 7392 940495
Robin James Martin, Vice President, Communications and Investor Relations
IR@valeuraenergy.com

Contact details for the Company’s advisors, covering research analysts and joint brokers, including Auctus Advisors LLP, Beacon Securities Limited, Canaccord Genuity Ltd (UK), Cormark Securities Inc., Research Capital Corporation, Roth Canada Inc., and Stifel Nicolaus Europe Limited, are listed on the Company’s website at www.valeuraenergy.com/investor-information/analysts/.

About the Company

Valeura Energy Inc. is a Canadian public company engaged in the exploration, development and production of petroleum and natural gas in Thailand and in Türkiye. The Company is pursuing a growth-oriented strategy and intends to re-invest into its producing asset portfolio and to deploy resources toward further organic and inorganic growth in Southeast Asia. Valeura aspires toward value accretive growth for stakeholders while adhering to high standards of environmental, social and governance responsibility.

Additional information relating to Valeura is also available on SEDAR+ at www.sedarplus.ca.

Advisory and Caution Regarding Forward-Looking Information
Certain information included in this news release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is for the purpose of explaining management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information typically contains statements with words such as ‘anticipate’, ‘believe’, ‘expect’, ‘plan’, ‘intend’, ‘estimate’, ‘propose’, ‘project’, ‘target’ or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this news release includes, but is not limited to, anticipated 2026 full year oil production rates; anticipated capex and exploration spending in 2026, including the proportion included for the Wassana redevelopment project and for exploration expenditure; anticipated 2026 adjusted opex, and the proportion thereof relating to leases; the Company’s reduced GHG intensity representing an ongoing ‘direction of travel’; the Company’s ability to realise its long-term objective of delivering 20 – 25 mbbls/d from its four producing assets; timing for development drilling and for first oil production from the Wassana field redevelopment; the Company’s continued aggressive pursuit of its growth ambitions; the ability for the Company’s financial wherewithal and opportunity set to support inorganic growth; the Company continuing to realise a premium to the benchmark Brent crude oil price; the Company continuing to pursue and achieve efficiency gains across its portfolio; the transfer of working interest in the deep gas play to Transatlantic and resultant working interests of the parties, and the Company obtaining regulatory approval thereof; the Company’s intention to release more details on the Devepinar-1 well test and the future plans for the deep gas play and the timing thereof; additional oil accumulations at the Jasmine and Ban Yen fields forming the basis of future infill drilling campaigns on the block; drilling success adding to the ultimate production potential of the B5/27 Block; new technologies and drilling approaching resulting in an increase in the ultimate recovery of its fields; the duration and composition of Valeura’s 2026 drilling programme; the Company’s anticipated exploration expenditure for 2026; the ability for drilling to mitigate natural production declines while also continuing the Company’s multi-year performance of adding reserves; and government approval and timing for completion of the Farm-in Transaction.

Forward-looking information is based on management’s current expectations and assumptions regarding, among other things: political stability of the areas in which the Company is operating; continued safety of operations and ability to proceed in a timely manner; continued operations of and approvals forthcoming from governments and regulators in a manner consistent with past conduct; future drilling activity on the required/expected timelines; the prospectivity of the Company’s lands; the continued favourable pricing and operating netbacks across its business; future production rates and associated operating netbacks and cash flow; decline rates; future sources of funding; future economic conditions; the impact of inflation of future costs; future currency exchange rates; interest rates; the ability to meet drilling deadlines and fulfil commitments under licences and leases; future commodity prices; the impact of the Russian invasion of Ukraine; royalty rates and taxes; future capital and other expenditures; the success obtained in drilling new wells and working over existing wellbores; the performance of wells and facilities; the availability of the required capital to funds its exploration, development and other operations, and the ability of the Company to meet its commitments and financial obligations; the ability of the Company to secure adequate processing, transportation, fractionation and storage capacity on acceptable terms; the capacity and reliability of facilities; the application of regulatory requirements respecting abandonment and reclamation; the recoverability of the Company’s reserves and contingent resources; future growth; the sufficiency of budgeted capital expenditures in carrying out planned activities; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions; global energy policies going forward; future debt levels; and the Company’s continued ability to obtain and retain qualified staff and equipment in a timely and cost efficient manner. In addition, the Company’s work programmes and budgets are in part based upon expected agreement among joint venture partners and associated exploration, development and marketing plans and anticipated costs and sales prices, which are subject to change based on, among other things, the actual results of drilling and related activity, availability of drilling, offshore storage and offloading facilities and other specialised oilfield equipment and service providers, changes in partners’ plans and unexpected delays and changes in market conditions. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.

Forward-looking information involves significant known and unknown risks and uncertainties. Exploration, appraisal, and development of oil and natural gas reserves and resources are speculative activities and involve a degree of risk. A number of factors could cause actual results to differ materially from those anticipated by the Company including, but not limited to: the ability of management to execute its business plan or realise anticipated benefits from acquisitions; the risk of disruptions from public health emergencies and/or pandemics; competition for specialised equipment and human resources; the Company’s ability to manage growth; the Company’s ability to manage the costs related to inflation; disruption in supply chains; the risk of currency fluctuations; changes in interest rates, oil and gas prices and netbacks; potential changes in joint venture partner strategies and participation in work programmes; uncertainty regarding the contemplated timelines and costs for work programme execution; the risks of disruption to operations and access to worksites; potential changes in laws and regulations, the uncertainty regarding government and other approvals; counterparty risk; the risk that financing may not be available; risks associated with weather delays and natural disasters; and the risk associated with international activity. See the most recent annual information form and management’s discussion and analysis of the Company for a detailed discussion of the risk factors.

The forward-looking information contained in this new release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this new release is expressly qualified by this cautionary statement.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction, including where such offer would be unlawful. This news release is not for distribution or release, directly or indirectly, in or into the United States, Ireland, the Republic of South Africa or Japan or any other jurisdiction in which its publication or distribution would be unlawful.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Valeura Energy Inc.

View the original press release on ACCESS Newswire

Questcorp Mining Inc. (CSE: QQQ,OTC:QQCMF) (OTCQB: QQCMF) (FSE: D910) (the ‘Company’ or ‘Questcorp’) along with its partner Riverside Resources Inc. (TSXV: RRI) (OTCQB: RVSDF) (FSE: 5YY0) (‘Riverside’), is pleased to announce a new discovery of potential Carlin-like gold mineralization at the Luis Hill target within the La Union Project in Sonora, Mexico.

Initial drilling in the Luis Hill target returned a 42m @ 0.3 g/t gold drill-width intersection of sediment-hosted gold mineralization in black shales and carbonate strata—a style not previously recognized at the Union Project. This was the only hole drilled into the Luis Hill target during the initial H2 2025 drill program.

Highlights of the Drill Program:

• Target Reporting: This release reports results from Luis Hill, Famosa, and Famosa Mag targets.
• New Discovery: Discovery of previously unknown Carlin-like gold mineralization in black shales and carbonate strata at Luis Hill, returning 0.3 g/t gold over 42m. Results to date show sulfides, mineralization types, and intrusions aligned with a carbonate-hosted metal system.
• Program Scale: Completed 12 core holes totaling >1,600 m across six targets: the past-producing Union, Union Norte, and Famosa Mine, as well as Cobre, Luis Hill, and Famosa EM.
• Assays Pending: Over 700 half-core samples have been shipped; further assays are pending for Union, Union North and Cobre targets.
• Strategic Orientation: Holes were oriented at angled and near-vertical positions to cut stratigraphy and structures typical of Carbonate Replacement Deposit (CRD) systems, focusing beneath oxidized horizons generally <150 m in depth.

Questcorp President & CEO, Saf Dhillon stated, ‘We are incredibly pleased with the work from the team at Riverside Resources. This story is starting to evolve quite efficiently, especially considering a first phase of drilling is more of a data gathering process that is utilized primarily to hone future work programs. Hitting a number of gold anomalies in the early stages is very promising as we continue to work towards making a new potential discovery in the rich Sonora Gold Belt. I believe 2026 could be an inflection point for the success and growth of both Questcorp and Riverside!’

Figure 1- Luis Hill cross section with drill hole 9.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10197/280127_3a05f3b904909978_001full.jpg

Table 1- Assay results table with gold for Luis Hill hole 9, Famosa Area holes 4, 5, 10, 11, 12.

Riverside CEO, John-Mark Staude, states,

‘Riverside is pleased to be working with Questcorp on the Union Project and these first 6 drill holes, representing half of the program so far is exciting and sets up for the next news release of the next 6 holes of the overall 12-hole program. Hole 9 into the Luis Hill exploration target is an exciting start finding a new western area that has scale and could be a great step for the program. Drilling at Famosa was positive for the structure and further drilling is warranted along strike north and south for over 1 km is wide open for discovery there and past assay results in earlier news releases of high-grade gold and past mining, make the Famosa area a priority as well. We are excited for a good 2026 and next exploration phase at Union.’

Luis Hill Target Detail

Hole 9 was drilled vertically in the southern area of a large, 1,500m by 500m magnetic high Luis Hill target. While Hole 9 did not hit an obvious large magnetic source, however several magnetic dioritic dikes which may be emanating from a deeper, larger magnetic source likely intermediate composition intrusion were intersected. The discovery interval consists of gold in siliceously replaced jasperoid-like dolomite and silica flooded black shale, which is similar to some sediment hosted gold deposits in Nevada (USGS Prof Paper 1267, 1985). The discovery, a new finding for this part of Sonora, is important for both the property and in the region as it shows the potential for previously unknown sediment hosted gold inside of one of the most prolific gold belts in Mexico, the Sonora Gold Belt – also referred to as the Megashear Gold Belt in past scientific studies. Folding and Basin and Range block faulting is expected to bring the mineralized formations closer to surface for 2026 H1 drilling within the magnetic target area. The Companies feel Luis Hill has the potential to become a major new discovery in Mexico.

The discovery interval of 0.3 g/t gold over 42 metres included 23 assay intervals ranging in width from 0.45m to 2m, with assays ranging from 0.005 g/t to 1.31 g/t gold. Fifteen intervals returned gold values in excess of 0.1 g/t, with three in excess of 0.5 g/t.

Table 2- Full Assay Interval for UND25-009 Discovery Intersection.

Figure 2- Cross section Famosa Mine area with 4 holes intersecting mineralized horizon that is the downdip projection from the Famosa mine and remains open for further drilling along strike north-south and further down dip to the west. Note the map shows how drill holes are projected onto a simplified single plane for schematic purposes.

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https://images.newsfilecorp.com/files/10197/280127_3a05f3b904909978_002full.jpg

Famosa Mine and Famosa EM Target

This release is also reporting results from the 5 holes drilled at the Famosa Mine and the Famosa Electro-Magnetic (‘EM’) target. Drilling at the Famosa mine focussed on extensions of the CRD mineralization, where past mining and the geology and structure indicate a manto horizon. One hole tested the EM Target located 500 m west of the Famosa Mine workings.

Four core holes tested a west-dipping dolomite manto target and adjacent structures in the Famosa Mine Area, where historical small-scale mining left surface dumps. Dump sampling reported highlight gold grades in excess 0.5 oz/t (>15 g/t) gold as detailed in the May 7, 2025, technical report found under Questcorp’s profile on SEDARplus. Holes were drilled at angles toward the east to intersect the target as close to perpendicular as practical and to evaluate continuity of alteration and mineralization with intrusive dikes and breccias noted in the core logging. A drill width intersection of 1.85m @ 0.345 gold, starting at 39m, on the down dip projection from the horizon at the Famosa Mine 70^o CRD shaft was recorded in Hole 5.

Hole 10 tested the Famosa EM target, intersecting the favorable dolomitic stratigraphy. The Famosa drilling results will be followed up.

The summary collar and drilling information for all 12 holes and 1625m drilled in Phase 1 is provided in the table below.

Table 3- Drill collar information with the bolded and italicized holes are in this news release.

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https://images.newsfilecorp.com/files/10197/280127_3a05f3b904909978_003full.jpg

Figure 3- Map of the location of the Luis Hill and Famosa areas among the other areas that were drilled and results will be coming next from the other target areas when available.

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Geological Model and Strategy

The H2 2025 Phase I program was designed to test primary areas of historical mining and key magnetic targets. The program followed the geological model of the South 32 Taylor deposit in southern Arizona. Drilling intersected gold, zinc, and silver indications consistent with vectors toward a major discovery.

Furthermore, the sediment-hosted gold style found at Luis Hill is comparable to Nevada’s carbonate platform geology, making it an intriguing new development area for the Union Project.

Sampling Procedures and QA/QC

Core was logged, saw-cut, and half-core samples were shipped for analysis. Samples from the first eight holes were delivered to Bureau Veritas (Hermosillo, Sonora) for gold fire assay, with pulps forwarded to Vancouver, Canada for Inductively Coupled Plasma-Mass Spectrometry (‘ICP-MS’) following four-acid digestion to determine silver, base metals, and pathfinders. Samples from the final four holes were shipped to ACT Labs Zacatecas, where preparation, gold assay, and multi-element ICP are completed in Mexico. The final 4 holes of the program were shipped to ACT Labs where they were similarly assayed using the same processing methods but with their initial preparation and assaying completed in Zacatecas, Mexico using the same ICP and gold fire assay methods. The change in lab halfway through the program was due to assay turn around issues. Samples were maintained in chain of custody being delivered to the laboratory in sealed bags. Remaining half-cores are retained for reference.

Standards were inserted every 20 samples and blanks every 100 samples. The laboratory also did duplicates every 20 samples as additional check on the quality control. The QA/QC was analyzed with a check for any variations in the standards beyond 2 standard deviations and the standards passed.

Next Steps

After all assays are interpreted and released, the Companies will work together on organizing the H1 2026 Phase 2 exploration program, building from the Phase I exploration results. Along with follow-up drilling, Phase 2 will likely include geophysics, geochemistry and mapping. The results announced here are exciting for the western Luis Hill area, which has never seen prior drilling, although small scale mines indicate potential locations. Based on these drill results, a focused follow-up is strongly warranted at Union for this target, as well as other targets.

The Companies are diligently working toward an expanded drill program for H1 2026, as all permits and access are in good standing. With the new data, targets will be ready to explore, with the potential to immediately begin field work portions early this year.

The Company will release the next set of drill results once a QA/QC review is completed.

Qualified Person:

The technical content of the new release has been reviewed and approved by R. Tim Henneberry, P.Geo (British Columbia), a director of the company and a qualified person under National Instrument 43-101.

The Union Agreement

Questcorp currently holds an option to earn a 100% interest in the Union Project with business terms announced May 6, 2025, and align Questcorp and Riverside through Riverside being a share owner initially 9.9% of Questcorp and upon earn-in Riverside will become a 19.9% share owner and retain a 2.5% NSR.

About Questcorp Mining Inc.

Questcorp Mining is engaged in the business of the acquisition and exploration of mineral properties in North America, with the objective of locating and developing economic precious and base metals properties of merit. The company holds an option to acquire an undivided 100-per-cent interest in and to mineral claims totalling 1,168.09 hectares comprising the North Island copper property, on Vancouver Island, B.C., subject to a royalty obligation. The company also holds an option to acquire an undivided 100-per-cent interest in and to mineral claims totalling 2,520.2 hectares comprising the La Union project located in Sonora, Mexico, subject to a royalty obligation.

Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding completion of survey work at the North Island Copper project. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280127