Mr. Zachary Kotowych reports

BOLT METALS ANNOUNCES CLOSING OF OPTION TO ACQUIRE THE HIGH-GRADE FLORALIA IRON PROJECT

Further to Bolt Metals Corp.'s press releases dated May 13, 2026, the letter of intent dated Oct. 23, 2025, and the definitive option agreement dated May 12, 2026, as amended, with Max Iron Brazil Ltd. (Max Iron), an entity controlled by Max Resource Corp. (Max), pursuant to which Bolt has the right to acquire 100 per cent of the Floralia high-purity iron property (title No. 832.022/2018) located in Minas Gerais, Brazil's largest iron ore and steel-producing state, the company has closed the transactions contemplated by the option agreement. The company has also closed the transactions contemplated by the debt settlement agreement dated May 11, 2026, with Max in connection with the establishment, exploration and development costs relating to the property.

Floralia summary

The Floralia high-purity iron property is located 67 kilometres east of the capital city of Belo Horizonte, Minas Gerais, Brazil's largest iron ore and steel-producing state. Iron ore remains critical for global infrastructure and steel production. Continuing urbanization in emerging markets continues to support high-grade iron assets, which offer reliable supply with a lower environmental footprint. Key project highlights include:

• Strategic location and logistics: The property sits adjacent to established infrastructure, rail networks and major local markets (including Vale, ArcelorMittal and Avante), ensuring highly efficient logistics and market access.
• Strong exploration potential: The initial oxide exploration target is estimated at 50 million to 70 million tonnes grading 55 per cent to 61 per cent Fe.
• Favourable metallurgy: Low-cost dry magnetic testing has yielded impressive results of 59 per cent to 69 per cent Fe, with mass recoveries ranging from 58 per cent to 79 per cent.
• Significantly derisked: The project is advanced by existing open-cut workings, historical drilling, and completed geophysical and metallurgical studies.
• Streamlined permitting: The project does not require a tailings dam or water permits, allowing for fast-tracked permitting while materially reducing capital expenditure and the overall environmental footprint.

As Bolt develops the Floralia project, it will be supported by a highly successful management and technical team with deep local knowledge.

• Brett Matich: A proven executive with a strong direct shipping ore (DSO) record, notably developing the Koolan Island hematite project from a flooded open pit into a highly successful operation, culminating in a $350-million takeover by Mt. Gibson Iron.
• Dr. Chris Grainger: A seasoned geologist with over 20 years of international experience in gold and copper exploration across the Americas, Australia and West Africa. He holds a BSc and PhD in economic geology from the University of Western Australia, and has a strong record of discovery and value creation, including key roles at Continental Gold (Buritica, sold for $1.4-billion), Cordoba Minerals (San Matias) and as co-founder of Collective Mining.
• Dr. Henrique de Sales: A former iron ore geologist at Vale, one of the world's top mining companies. As an iron ore specialist, he led the development of several hematite DSO mines in Brazil (one Mtpa (million tonnes per annum) to three Mtpa), including Ferro Puro, GSM and Corrego do Onca -- all within 50 km of Floralia. He resides in Belo Horizonte, Minas Gerais.

Zachary Kotowych, chief executive officer of Bolt Metals, commented: "Today's announcement marks a significant step forward and keeps the company firmly on track to achieve its key development milestones -- including a maiden resource estimate later this year and a production decision in 2027. We are also excited to commence the drilling program shortly, which will further delineate the high-grade, shallow mineralization at Floralia. This next phase of work is critical to derisking the project and unlocking its substantial potential as a low-capex, low-opex iron ore producer. Management remains highly encouraged by the project's robust economics and is confident in its ability to deliver meaningful value for shareholders as the project advances toward production."

Floralia option agreement, as amended:

• Upon exercise of the option, Bolt may acquire a 100-per-cent interest in the property by issuing to Max Iron an aggregate of 26.8 million common shares of Bolt over a 30-month period as follows: a) 6.7 million shares within 12-months of the effective date, b) 6.7 million shares on the 18-month anniversary, c) 6.7 million shares on the 24-month anniversary, d) 6.7 million shares on the 30-month anniversary.
• Upon the completion of the total issuance of the shares and subject to shareholder approval of the company, the shares must represent no less than 25 per cent of the issued and outstanding shares, if less than 25 per cent, Bolt will issue additional shares such that Max Iron holds, in aggregate, 25 per cent of the shares of Bolt following the issuance.
• Following exercise of the option, Max Iron is entitled to nominate one director to the board of directors of Bolt, subject to applicable corporate, securities law and Canadian Securities Exchange (CSE) requirements.
• Bolt may accelerate exercise of the option at any time prior to expiry of the 30-month option period. In certain circumstances, including a change of control of Bolt, an encumbrance of the property, or a decision to mine, Bolt will satisfy all remaining option conditions within five business days.
• The aggregate number of shares issuable under the option must not exceed 19.9 per cent of the issued and outstanding shares of the company, unless the company has sought shareholder approval, in compliance with the policies of the CSE.

Max debt settlement agreement

Pursuant to the debt settlement agreement, Bolt has issued: (i) four million shares; and (ii) two million prefinanced warrants of Bolt. Each prefinanced warrant will be exercisable into one share at an exercise price of 0.1 cent per share for a period of 24 months from the date of issuance. The securities are subject to resale restriction for a period of 24 months from the date of issuance.

Provided that Max, together with its affiliates, owns at least 5.0 per cent of the issued and outstanding shares, Max will also be entitled to nominate one director to Bolt's board of directors and will have a participation right to maintain its percentage ownership interest in connection with certain future equity issuances by Bolt, in each case subject to the terms of the debt settlement agreement and applicable securities law.

The aggregate number of shares issuable under the debt settlement agreement must not exceed 19.9 per cent of the issued and outstanding shares of the company, unless the company has sought shareholder approval, in compliance with the policies of the CSE.

All securities issued pursuant to the option agreement and the debt settlement agreement are or will be (when issued) subject to a four-month-and-one-day hold period in compliance with applicable securities laws. No finders' fees were payable in connection with the option agreement or debt settlement agreement.

Qualified person

The technical content of this news release has been reviewed and approved by Deepak Varshney, PGeo, a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects and who is independent of the company.

About Bolt Metals Corp.

Bolt Metals is a mineral acquisition and exploration company focused on the development of quality precious and base metal properties that are drill-ready with high-upside and expansion potential in the Americas. Bolt trades on the CSE under the symbol BOLT, the OTCQB under the symbol PCRCF and in Germany under the WKN A3D8AK.

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