Mr. Steve Parsons reports

FIREFLY ANNOUNCES SUCCESSFUL A$190M CAPITAL RAISING TO FUND DEVELOPMENT AND RESOURCE GROWTH

Firefly Metals Ltd. has arranged a highly successful equity raising, which will bolster the company's balance sheet as it progresses toward project development while maintaining an aggressive exploration program.

Firefly has received firm commitments for a $180-million (Australian) (before costs) equity raising through the issue of up to approximately 101.1 million new fully paid ordinary shares in the company (new shares) at a price of $1.78 (Australian) ($1.76 (Canadian)) per new share (offer price).

Following release of the preliminary economic assessment highlighting a technically and economically robust project, the company intends to use the funds to continue derisking, advancing and expanding its Green Bay copper-gold project.

This includes early project works, procurement of long-lead capital items, advancing a feasibility study for the 1.8-million-tonne-per-year base-case scenario and a prefeasibility study on the larger 4.6-million-tonne-per-year alternative scenario, and further resource growth ahead of a final investment decision by mid-2027.

Firefly managing director Steve Parsons said: "The strong demand for the raising reflects Green Bay's status as one of the world's best undeveloped copper projects.

"This status was confirmed by the robust production and financial metrics contained in the preliminary economic assessment, which demonstrated a strong cash flow outlook and rapid payback period.

"We are now very well funded to progress towards project development while maintaining a multirig drilling program aimed at ongoing resource growth."

Equity raising details

The equity raising comprises two components:

1. A $150-million (Australian) Australian Securities Exchange institutional placement of new shares (ASX placement); and
2. A Canadian bought deal private placement to raise approximately $29.6-million (Canadian) (approximately $30-million (Australian)) pursuant to the listed issuer financing exemption (as defined below) (Toronto Stock Exchange bought deal).

Additionally, Firefly intends to invite eligible shareholders (as defined herein) to participate in a non-underwritten share purchase plan to acquire new fully paid ordinary shares in the capital of Firefly (SPP shares) at the same offer price as the ASX placement, to raise up to a further $10-million (Australian) (before costs).

ASX placement

The company has received firm commitments from sophisticated and professional investors under the ASX placement to raise $150-million (Australian) (before costs) through the issue of approximately 84.3 million new shares at the offer price of $1.78 (Australian) per new share (placement shares). Settlement of the placement shares is expected to occur on or around Tuesday, Sept. 1, 2026. The placement shares will be issued under the company's existing placement capacity under ASX listing rule 7.1.

TSX bought deal

Firefly has entered into an agreement with BMO Nesbitt Burns Inc., pursuant to which BMO, on behalf of a syndicate of underwriters, has agreed to purchase, on a bought deal private placement basis, 16.8 million new shares at a price of $1.764 (Canadian) ($1.78 (Australian)) per new share for gross proceeds of $29.6-million (Canadian) (approximately $30-million (Australian)) under the TSX bought deal.

The new shares under the TSX bought deal are being offered in Canada by way of the listed issuer financing exemption in all of the provinces of Canada, (excluding Quebec), and by way of private placement in the United States and offshore jurisdictions in accordance with applicable laws. The new shares issued pursuant to the LIFE will not be subject to a statutory hold period in Canada.

The TSX bought deal is expected to close on or around Thursday, Sept. 3, 2026. The new shares that are subject of the TSX bought deal will be issued under the company's existing placement capacity under ASX listing rule 7.1.

Share purchase plan

The company is offering shareholders who were registered as a holder of shares as at 5 p.m. AWST on Aug. 24, 2026 (record date), and whose registered address is in Australia or New Zealand (eligible shareholders) the opportunity to participate in the SPP and subscribe for a maximum of $30,000 (Australian) worth of SPP shares at the offer price of $1.78 (Australian) per SPP share (being the same price as the ASX placement). The SPP is targeted to raise up to $10.0-million (Australian) (before costs).

The company reserves the right (in its absolute discretion) to scale back applications under the SPP if demand exceeds $10.0-million (Australian), to accept oversubscriptions, or to close the SPP at an earlier date in accordance with the ASX Listing Rules and the Corporations Act 2001 (Cth).

The SPP offer booklet, containing further details on the SPP, is expected to be released on the ASX and made available to eligible shareholders on or around Sept. 4, 2026. The SPP is subject to the terms and conditions set out in the SPP offer booklet.

Use of funds

The net proceeds of the equity raising and SPP will be primarily used to advance project implementation for the Green Bay copper-gold project and provide significant balance sheet strength ahead of completion of a project financing process including:

• Development and early works, including underground development for drilling platforms, ventilation and electrical upgrade platforms, and surface early works;
• Underground drilling targeting upper mine extensions, measured and indicated resource growth, geophysical targeting, parallel lodes, and depth extensions;
• Regional exploration drilling including new discovery targeting across the district;
• Technical studies including a definitive feasibility study on the 1.8-million-tonne-per-year base case and prefeasibility on the 4.6-million-tonne-per-year alternative case; and
• Corporate and transaction costs, and working capital to provide necessary flexibility to conduct additional project development activities and early works.

Advisers

Canaccord Genuity (Australia) Ltd. acted as sole lead manager and bookrunner to the ASX placement. Euroz Hartleys Ltd. and Argonaut Securities Pty. Ltd. acted as co-managers to the ASX placement.

BMO acted as sole bookrunner and part of a syndicate of underwriters including BMO, RBC Dominion Inc., CIBC World Markets Inc. and Canaccord Genuity Corp. for the TSX bought deal.

Hamilton Locke acted as Australian legal adviser to the company, and Osler, Hoskin & Harcourt LLP acted as Canadian legal adviser to the company.

The above timetable is indicative only and subject to change. The company reserves the right to amend any or all of these dates and times without notice, subject to the Corporations Act, the ASX Listing Rules and other applicable laws.

About Firefly Metals Ltd.

Firefly Metals is an emerging copper-gold company focused on expanding the high-grade Green Bay copper-gold project in Newfoundland, Canada. The project is advancing toward development, with a preliminary economic assessment showing the potential for a high-grade, low-cost and long-life operation with a pathway to produce 100,000 tonnes of copper per annum.

The Green Bay copper-gold project is underpinned by 60.2 million tonnes of measured and indicated mineral resources at 2.43 per cent for 1,464,000 tonnes copper equivalent and 23.5 million tonnes of inferred mineral resources at 2.51 per cent for 592,000 tonnes CuEq, prepared and disclosed in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (Joint Ore Reserves Committee Code (2012 edition)) and Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

The company has a clear strategy to continue expanding the Green Bay copper-gold project through resource expansion, new discoveries and advancement toward development.

The company also holds a 90-per-cent interest in the Limestone Well vanadium-titanium project in Western Australia.

We seek Safe Harbor.