Mr. John Travaglini reports

CHICANE CAPITAL I CORP. ANNOUNCES SECOND CLOSING OF CONCURRENT PRIVATE PLACEMENT AND RESULTS OF SHAREHOLDERS MEETINGS

Further to Chicane Capital I Corp.'s press releases dated April 16, 2026, May 27, 2026, and July 16, 2026, in connection with the company's previously announced qualifying transaction with Elton Resources Corp., Elton has completed the second tranche of its private placement offering of subscription receipts for aggregate gross proceeds of $625,000.

Pursuant to the second tranche: (i) Elton issued an aggregate of 3,125,000 subscription receipts at a price per Elton HD subscription receipt of 20 cents. The Elton HD subscription receipts were issued pursuant to a supplement to the subscription receipt agreement dated July 16, 2026, between Elton, Canaccord Genuity Corp. and TSX Trust Company, in its capacity as subscription receipt agent in respect of the Elton HD subscription receipts.

Each Elton HD subscription receipt will entitle the holder thereof to receive, without any further action and without payment of additional consideration and subject to adjustments in certain circumstances, one unit of Elton, with each Elton HD unit comprising one common share of Elton and one-half of one Elton share purchase warrant, with each whole warrant being exercisable for a period of three years from the date of issuance for one Elton share at an exercise price of 30 cents, upon the satisfaction or waiver of the Elton escrow release conditions (as defined below) prior to the termination date (as defined below). For avoidance of doubt, upon the completion of the proposed transaction, the Elton shares and warrants forming part of the Elton HD units will be exchanged for common shares of the resulting issuer from the proposed transaction and resulting issuer share purchase warrants on a 1:1 basis.

The aggregate gross proceeds in respect of the Elton HD subscription receipts were deposited in escrow pursuant to the Elton subscription receipt agreement in an interest-bearing account on the same terms and conditions as the Elton HD subscription receipts issued on July 16, 2026, including the same escrow release conditions and escrow release deadline of Nov. 13, 2026.

The net proceeds from sale of the Elton HD subscription receipts will be used for exploration expenditures on the resulting issuer's mineral exploration project(s) and for general and administrative purposes.

In connection with the second tranche and upon satisfaction of the Elton escrow release conditions, Elton will: (i) pay a fiscal advisory cash fee of $37,500; and (ii) issue 187,500 Elton share purchase warrants, with each advisory warrant exercisable to acquire one Elton share at an exercise price of 20 cents for a period of three years from the date of issuance thereof. Each advisory warrant will be exchanged for a resulting issuer share purchase warrant bearing substantially the same terms as the advisory warrants in connection with the completion of the proposed transaction.

The Elton HD subscription receipts and Elton shares and warrants shall be subject to an indefinite hold period under Canadian securities laws. The resulting issuer shares and resulting issuer warrants issued in exchange for the Elton shares and warrants issued upon the conversion of the Elton HD subscription receipts and the resulting issuer share purchase warrants issued in exchange for the advisory warrants and underlying resulting issuer shares will not be subject to a statutory hold period in Canada. The offering, including the second tranche, remains subject to the final approval of the TSX-V.

Chicane is also pleased to announce the results of its annual general and special meeting of holders of common shares of Chicane held on Aug. 24, 2026. At the Chicane meeting, the Chicane shareholders approved all resolutions presented, including those relating to the proposed transaction, namely Chicane's previously announced share consolidation, continuance from Ontario to British Columbia, reconstitution of Chicane's board, name change, adoption of the resulting issuer equity incentive plan and adoption of new postcontinuance articles for Chicane.

Chicane is also pleased to announce that the holders of Elton shares have approved the previously announced amalgamation of Elton with 1589751 B.C. Ltd., a wholly owned subsidiary of Chicane, in connection with the proposed transaction at the annual general and special meeting of Elton shareholders held on Aug.2 5, 2026.

Additional information

Trading in the common shares of the company is currently suspended in accordance with the policies of the exchange and will remain suspended until such time as all required documentation in connection with the proposed transaction has been filed with and accepted by the exchange and permission to resume trading has been obtained from the exchange.

Completion of the proposed transaction is subject to a number of conditions and there can be no assurance that the proposed transaction will be completed as proposed or at all.

About Chicane Capital I Corp.

Chicane was incorporated under the Business Corporations Act (Ontario) on Feb. 23, 2022, and is a capital pool company (as such term is defined in Policy 2.4) listed on the exchange. Chicane has no commercial operations and no assets other than cash.

About Elton Resources Corp.

Elton is a mining exploration company focused on the exploration and development of the Darnley Bay project in the Northwest Territories, Canada.

We seek Safe Harbor.