Mr. Terry Tucker reports

NOVEMBER 2026 LETTER TO SHAREHOLDERS

Dear shareholders,

Vatu Aurum is Kalo Gold's 100-per-cent-owned, 367-square-kilometre gold project on Vanua Levu, Fiji. After more than 30 years as a geologist working on mineral projects around the world, I believe its scale and the pattern of gold emerging across the property make it a rare opportunity.

A year ago, we had a high-grade discovery hole at Aurum Prime (22.12 metres at 12.80 grams per tonne gold) and an early stage target at Wainikoro. That was a great starting point. Our next question was how to build on it and make more discoveries across this 367-square-kilometre project as efficiently as possible. To select the best places to drill, we needed a fuller picture of the project's geology.

In 2026, our team completed an extensive program of geological exploration and geophysical surveys at Vatu Aurum. At Aurum Prime, gold is now confirmed in three separate volcanic pipes. At Wainikoro, we traced gold-bearing veins at surface, intersected anomalous gold in two reconnaissance drill holes and outlined a 4.3-kilometre geophysical corridor with gold occurrences at several points along it. Surveys, ground geophysics, mapping, sampling and trenching helped build a clearer picture of the project and prioritize targets for drilling.

I know shareholders want to see more drilling. We do too, and we are close. Thank you for your patience while we completed this critical geological work in 2026.

Kalo had more than $7-million in cash (unaudited) at Aug. 31, 2026. After planned year-end work, we expect to finish 2026 with approximately $5-million, leaving the company well financed for its planned drilling, scheduled to begin in January, 2027.

Our goal for 2027 is clear: make more gold discoveries that may one day support a viable mining operation at Vatu Aurum.

What it takes to find a mine

Most exploration projects do not become mines, and the ones that do are rarely found by luck. They are found by narrowing a large area down to a few well-defined targets and then testing those targets with the drill: map the ground, sample the soils and rocks, trench the best of those to see whether the gold is in bedrock, run geophysics to see how the structures continue below the surface, and only then drill holes aimed at a specific target for a specific reason. At every step most of the ground drops out. That is the point: the money is saved for the places that deserve it.

That takes discipline. In April we said publicly that no further drilling would be done until the airborne magnetic survey was complete and integrated into the exploration model (news release dated April 22, 2026). We then chose to complete the ground geophysics before drilling again. I recognize that shareholders want to see drilling results. So do I. But drilling is our most expensive activity, and putting that money against well-defined targets is a better use of shareholders' funds than drilling before the model is ready. The rest of this letter shows what that produced.

Funding

On Jan. 19, 2026, we closed the final tranche of our financing for total gross proceeds of approximately $12.45-million: about 38.9 million units at 32 cents, each with one share and one-half of a warrant, each whole warrant exercisable at 50 cents for three years (news release dated Jan. 19, 2026). Thank you to our new and long-standing shareholders. Because we were funded on day 1, the team could commit to a full year of groundwork without interruption.

A better map of the whole project

We spent the first half of the year building the most detailed picture of Vatu Aurum the project has ever had: lidar (light detection and ranging) and aerial photography across most of the project, mapping the true shape of the land beneath the jungle canopy (news release dated Feb. 10, 2026); a 6,212-line-kilometre helicopter magnetic survey showing where faults run and where rock has been altered by the hot fluids that carry gold; and the detectORE field gold-testing system in routine use at site, so geologists could follow up promising ground within days while certified results still came from an accredited laboratory (news release dated Feb. 24, 2026). In May we combined all of this into an updated geological model. Our updated geological model suggests that Vatu Aurum represents a connected, multiphase volcanic and hydrothermal system, rather than a collection of unrelated prospects, with the highest-priority ground interpreted to lie at intersections of major fault structures (news release dated May 27, 2026). That gives us a clear, repeatable logic for choosing drill targets.

Aurum Prime: the discovery confirmed

At Aurum Prime, home of our 2025 discovery hole (22.12 metres at 12.80 g/t gold; true width 20.70 metres; news release dated Oct. 15, 2025), hole VA26-DH17 returned 16.90 metres at 3.25 g/t gold, including 9.00 metres at 4.66 g/t (true widths approximately 95 per cent of reported lengths; news release dated April 8, 2026), with gold interpreted to run continuously from near surface into the volcanic pipe below rather than sitting in isolated pockets. Gold is now confirmed in three separate volcanic pipes at Aurum Prime, most of the interpreted fluid pathways there remain untested at depth (QC1, QC3 and QC4), and a gravity survey completed this fall (news release dated Oct. 28, 2026) adds another layer of information for future drilling.

Wainikoro: from a soil signal to a 4.3-kilometre corridor

Wainikoro, about five kilometres from Aurum Prime, is the biggest story of 2026. Here is how it came together:

1. Gold in rock (June). Our crews traced the soil signal to gold-bearing quartz veins at surface along a trend about 1.8 kilometres long, and two reconnaissance drill holes returned anomalous gold at depth, including 1.5 metres at 1.61 g/t gold in VA26-DH19 (downhole length; true width not known; news releases dated June 9 and June 30, 2026).
2. Gold in bedrock (July). Certified fire assays returned surface gold of up to 8.78 g/t from a vein float sample, and trenching showed the gold comes from the bedrock itself (news release dated July 21, 2026). Mercury and alteration of the kind that forms at the top of a gold system suggested the gold-bearing zone may lie below the current level of exposure (news release dated July 8, 2026).
3. A new high-grade vein cluster (September). Seven rock samples from a single previously unsampled outcrop returned up to 7.83 g/t gold and 108 g/t silver, five of them above two g/t gold (certified assays; news release dated Sept. 8, 2026).
4. The corridor takes shape (September). A ground resistivity survey outlined a corridor about 4.3 kilometres long, open along strike, with gold occurrences recorded along its length (news release dated Sept. 24, 2026), and a university study identified a single grain of electrum, a natural gold-silver alloy, in core from drill hole VA26-DH19 (news release dated Sept. 29, 2026).
5. More occurrences (October). A detectORE field-screening test on a grab sample at Kope Road North returned 16,361 dU (approximately 16.36 g/t gold estimated), which is not a certified assay and is subject to laboratory fire assay (news release dated Oct. 13, 2026), and a further detectORE result extended surface gold occurrences along the full length of the corridor (news release dated Oct. 28, 2026).

To be precise about what this is: a 4.3-kilometre corridor defined by geophysics, with gold found at surface and anomalous gold in two drill holes along it. The continuity, width and grade of mineralization along this corridor remain untested. The January drilling program is planned to test prioritized targets along this corridor to establish the grade, width and continuity of gold mineralization at depth.

Why Wainikoro first

Shareholders will remember the 22.12 metres at 12.80 g/t at Aurum Prime and may ask why the first rig goes to Wainikoro. Three reasons. First, Wainikoro has had only two holes, and neither was drilled with the information we now hold; the ground surveys that tell us where structures go at depth were run there in full. Second, the 2026 work gave us a targeting relationship to drill against: elevated gold screening responses at Wainikoro occur preferentially along the margins of the resistivity highs and lows (news release dated Sept. 24, 2026), and the corridor gives us many places to test that. Third, prioritizing Wainikoro does not diminish Aurum Prime. The high-grade discovery at QC1 and the confirmation of gold in two further diatreme structures remain compelling, and with the gravity survey now complete Aurum Prime stays an important part of our exploration pipeline, behind the Wainikoro targets now being refined for January.

Ready to drill

From July to October, Fender Geophysics completed three ground surveys at Wainikoro: an electrical (IP) survey, a gravity survey and a deeper electrical survey (CSAMT) that finished on Oct. 26. Through November and early December, the team will interpret those data together with all of our mapping, sampling and trenching, trench the most promising survey targets, and finish about 1.6 kilometres of road upgrades, three culverts and gravel surfacing so crews can work safely through the wet season. Drilling is planned to begin in January, 2027, with one rig operating through the wet season to systematically test the highest-priority Wainikoro targets. Aurum Prime and our third area, Coqeloa, give us a pipeline of further opportunities behind it.

The money to do it

As at Aug. 31, 2026, Kalo had over $7-million in cash (unaudited). After this year's surveys, trenching and road work, we expect to finish 2026 with a cash balance of approximately $5-million, so we begin the January program with well-defined targets and the money to test them.

How we work on the ground

Finding a mine also depends on being welcome where you work. On Nov. 2 we announced that Digbee, an independent sustainability assessment platform for the mining sector, had awarded Kalo an overall rating of BBB on our first submission, covering both the company and the Vatu Aurum project. Behind that rating:

• No fatalities, disabling injuries or lost-time incidents since exploration began in 2010.
• Over 90 per cent of staff during the first eight months of 2026 were Fiji nationals, with the site team reaching nearly 100 people.
• About 70 per cent of current project procurement sourced locally.
• Access and compensation agreements in place with landowners for all exploration activities.

The assessment also gave us a specific list of things to improve, and we will work through it before our next submission in September, 2027.

Looking ahead

Two thousand twenty-six was about doing the groundwork properly so that 2027 can be about drilling. A year ago, Wainikoro was an early stage exploration target; in January it is planned to be tested by holes aimed at defined targets with every data set we could gather behind them. That is what it takes to find a mine, and it is what we have built. I do not underestimate the uncertainties. Encouraging assays, alteration and geophysical responses do not establish an economic gold deposit. Drilling is required to determine the continuity and extent of mineralization, and that is our next objective. But with well-defined targets, a strong cash position and drilling planned to begin in January, I have never been more confident in the opportunity in front of us.

Thank you to our team in Fiji, our technical partners at Strata GeoData Services Ltd. (SGDS-Hive), Pioneer Exploration Consultants Ltd., GeoDiscovery Group Pty. Ltd., Fender Geophysics Pty. Ltd., Portable PPB Pty. Ltd., Australian Laboratory Services Pty. Ltd. (ALS), Diamond Drilling Fiji Pte. Ltd., CRM Consulting and the Camborne School of Mines, University of Exeter, the communities and landowners of Vanua Levu, and to you, our shareholders, for your continued support. The news releases behind every result in this letter are at the Kalo Gold website, and I look forward to reporting on the first holes.

Sincerely,

Terry L. Tucker, PGeo

President and chief executive officer, Kalo Gold

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