Vancouver, British Columbia--(Newsfile Corp. - August 26, 2026) - Blue Star Gold Corp. (TSXV: BAU) (OTCQB: BAUFF) (FSE: 5WP0) ("Blue Star" or the "Company") announces initial results from Phase 2 of its 2026 Exploration Program at the Auma Project. This is the Company's first drill program at this highly prospective area for both gold and critical metals. Blue Star is a leading explorer in Canada's North with its projects strategically located along the proposed Grays Bay Road in the High Lake Belt, West Kitikmeot Region of Nunavut (Figure 1). Initial results are reported below from the first pass drill targeting of the Bamako prospect, Auma Project.

Highlights

• Auma drilling confirms a gold system over an unconstrained 300 metre strike length at shallow depths
• 26ABD003 intercepted a wide zone east of the targeted Bamako trend returning 8.0 metres (m) of 2.65 grams per tonne gold (g/t Au) including 3.4 m of 3.33 g/t Au. Additional intervals along the Bamako trend returned 2.0 m grading 9.44 g/t Au, and 1.9 m grading 16.74 g/t Au
• 26ABD005 intercepted quartz veins hosting visible gold, returning 2.0 m grading 10.6 g/t Au including 0.5 m grading 39.1 g/t Au, and 2.1 m grading 3.47 g/t including 0.3 m grading 16.4 g/t Au

"Compilation work by the exploration team led to expansion of the Auma project to district-scale earlier this year. The potential for both gold and critical minerals resulted in early drill planning to test both gold and critical minerals discovery targets," said Grant Ewing, CEO of Blue Star. "These initial drill results are encouraging, confirming a significant gold system at Bamako over the 300 metres of drill-tested strike. Follow-up drilling is underway as we continue to evaluate the potential for Auma to develop into a new gold resource centre in the High Lake Belt."

Discussion of Auma (Bamako)

The expanded Auma Project (News Release dated February 18, 2026) encompasses a district-scale land position prospective for both high-grade orogenic gold and volcanogenic massive sulphide (VMS) mineralization. The original Auma showing hosts high-grade, vein-hosted gold mineralization, including surface samples exceeding 100 g/t Au. Mineralization is associated with quartz veins, sulphide-rich selvages, and alteration halos. Historical drilling tested only a limited portion of the known mineralized system, while recent surface exploration significantly expanded the mineralized footprint beyond previously drilled areas. The enlarged property now covers approximately 11,794 hectares of Crown and Inuit Owned Lands and includes multiple styles of mineralization, including carbonate-altered shear-hosted gold and VMS-related zinc and copper occurrences, highlighting the project's strong discovery potential and the significant opportunity presented by the large areas that remain unexplored.

The current 2,400-metre maiden drill program at Auma was designed to test the property's highest-priority gold and copper-gold targets. The drill program is focused on understanding and extending known mineralization at the Bamako prospect, evaluating high-grade surface gold discoveries, and completing a reconnaissance test of the Penny Lane copper-gold target discovered in 2025 (News Release dated September 10, 2025). The program is supported by an extensive historical and modern exploration database, including drilling, geological mapping, surface geochemistry, and multiple airborne and ground geophysical surveys, providing a strong technical foundation for prioritizing targets and reducing exploration risk (Figure 2).

Drilling at Bamako has intersected a broad system of altered volcanic and sedimentary rocks containing quartz veining and sulphide mineralization, with multiple structurally controlled mineralized intervals identified across the first five holes. The results confirm the continuity of mineralization between previously tested areas and provide additional evidence that the Bamako system extends beyond the limits of historical drilling. Assay results received to date include several high-grade intervals, with the strongest results including 8.0 m grading 2.65 g/t Au and 1.9 m grading 16.74 g/t Au in 26ABD003, and 2.0 m grading 10.60 g/t Au in 26ABD005. Additional significant intervals occur throughout the holes, demonstrating multiple mineralized zones within the broader Bamako system.

Hole 26ABD001 tested beneath historical high-grade gold intersections and investigated several geophysical and geochemical targets interpreted to represent extensions of known mineralization. The hole returned 1.0 m grading 5.20 g/t Au from 72.0 m, 5.4 m grading 0.73 g/t Au from 83.0 m, and 2.4 m grading 2.76 g/t gold from 163.8 m.

Hole 26ABD002 was drilled as an undercut scissor hole to 26ABD001 to better understand the orientation and continuity of mineralized zones identified in the previous hole. Assay results include 1.7 m grading 0.57 g/t Au from 60.4 m, 0.4 m grading 2.35 g/t Au from 111.1 m, 1.9 m grading 1.22 g/t Au from 117.1 m, 4.3 m grading 0.51 g/t Au from 130.7 m, and 1.3 m grading 1.26 g/t Au from 211.2 m, supporting continuity of mineralized structures between the two drill holes.

Hole 26ABD003 tested beneath a large, mineralized surface exposure containing high-grade rock samples and was drilled from the opposite direction to improve the understanding of the mineralized structure(s). The hole returned 8.0 m grading 2.65 g/t Au from 22.9 m, 2.0 m grading 9.44 g/t Au from 59.0 m, 3.1 m grading 1.68 g/t Au from 141.0 m, and 1.9 m grading 16.74 g/t Au from 155.0 m, confirming significant gold mineralization over a broad section of the hole (Figure 3).

Hole 26ABD004 was the first drill hole into the previously undrilled northern portion of the Bamako trend, targeting exceptional historical surface gold values. The hole returned 0.2 m grading 4.52 g/t Au from 111.9 m, 0.3 m grading 1.02 g/t Au from 151.5 m, and 0.8 m grading 2.39 g/t Au from 168.4 m, demonstrating gold mineralization within the previously undrilled area.

Hole 26ABD005 stepped between 26ABD001/002 and 26ABD004 to confirm continuity along the Bamako trend. The drill hole returned 2.0 m grading 10.60 g/t Au from 57.2 m (visible gold observed - Plate 1), 2.1 m grading 3.47 g/t Au from 61.0 m, 0.3 metres grading 3.32 g/t Au from 75.9 m, 2.7 m grading 1.13 g/t Au from 86.0 m, and 0.5 m grading 5.77 g/t Au from 182.0 m.

Plate 1: 26ABD005 Very Fine, Disseminated Visible Gold (VG), Auma Project.

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Next Steps

Auma drilling confirmed the presence and continuity of a significant gold mineralised system over a drill tested 300 metres of strike length at shallow depths. Planning for follow-up drilling based on the results received to date is underway focused on evaluating similar coincident features, and parallel and link structures. A review of the captured data will be conducted post season to generate a geological and structural model to direct further work programs in 2027, with an objective of defining a new gold resource centre in the High Lake Belt.

Sampling, Assaying & QA/QC

Blue Star field programs collect a variety of samples; prospecting rock samples are selective by nature, channel samples are saw-cut samples from outcrop intended to be representative of the exposed mineralisation, and drill core samples are sawn in half with one half retained as core record and the other half submitted for analysis.

Blue Star samples are delivered under chain of custody to ALS Geochemistry in Yellowknife, NT for sample preparation which are then forwarded to ALS Canada Inc. in North Vancouver, BC for final analysis. Samples are prepared using code PREP-31 (crushing and pulverising) and analysed using codes Au-AA26 (50-gram fire assay with atomic absorption finish) and ME-MS61 (48 element four acid digestion with ICP-MS finish). Samples returning >10 g/t Au are reanalysed under code Au-GRA22 (50-gram fire assay with gravimetric finish). Over limits for non-gold elements are ore grade four acid digestion with ICP-AES finish. The work is being conducted using industry standard procedures, including a quality assurance and quality control ("QA/QC") program consisting of the insertion of certified standards, blanks and duplicates into the sample stream.

Darren Lindsay, P. Geo. and Vice President Exploration for Blue Star, is a Qualified Person under National Instrument 43-101 ("NI 43-101") and has reviewed and approved the technical information contained in this news release.

Table of Drill Collars

Table of Results (ADB001 - ABD005)*

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*Intervals are down hole lengths; there has been insufficient drilling to determine true thicknesses.

Figure 1: Location Map Showing Blue Star's Landholdings.

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Figure 2: Bamako Targets, Auma Project Shown on SkyTEM Total Magnetics. 
Data Overlain with Gold Grades from Rock Samples.

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Figure 3: Northward Looking, Vertical Cross Section of Drill Hole 26ABD003, Bamako Target.

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About Blue Star Gold Corp.

Blue Star is a mineral exploration and development company focused on Nunavut, Canada. The Company controls over 420 square kilometres of highly prospective and underexplored mineral properties in the High Lake Greenstone Belt. Its principal assets include the Ulu Gold Project - comprised of the Ulu Mining Lease and Hood River Property, and the Roma and Auma Projects. The Ulu Mining Lease hosts the high-grade Flood Zone Gold Deposit, and the Company's broader land package contains numerous high-priority gold and critical mineral targets, providing substantial upside potential for Mineral Resource expansion.

Grays Bay Road and Port Project: On June 24, 2026, the Government of Canada stated it had initiated consultations to consider listing the Grays Bay Road and Port Project (GBRPP) under Schedule 1 of the Building Canada Act. Following the March 12, 2026, announcement by Prime Minister Mark Carney that the GBRPP would be referred to the Major Projects Office, this is a further endorsement of the national significance of the GBRPP, which can accelerate its development (https://www.westkit.ca/news). Blue Star's projects are strategically located 40-100 km south of the proposed Grays Bay deep-water port, with the planned all-weather Grays Bay Road corridor passing very close to the Company's projects.

Blue Star is listed on the TSX Venture Exchange (BAU), the OTCQB Venture Market (BAUFF), and the Frankfurt Exchange (5WP0). Additional information is available at www.bluestargold.ca.

Neither the 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 NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION

This press release contains "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding prospective income and revenues, anticipated levels of capital expenditures for the fiscal year, expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities, and governmental and regulatory investigations and proceedings, and estimates of mineral resources and reserves on our properties.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses into our operations, developments and changes in laws and regulations, including increased regulation of the mining industry through legislative action and revised rules and standards applied by the regulatory bodies in Nunavut, changes in the price of fuel and other key materials and disruptions in supply chains for these materials, closures or slowdowns and changes in labour costs and labour difficulties, including stoppages affecting either our operations or our suppliers' abilities to deliver goods and services to us, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of our equipment, and inaccuracies in estimates of Mineral Resources and/or Mineral Reserves on our mineral properties.

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