Mr. John Byrne reports

LIONS BAY CAPITAL ANNOUNCES CEASE TRADE ORDER AND SUSPENSION FROM TRADING

The B.C. Securities Commission issued a failure-to-file cease trade order against Lions Bay Capital Inc. on Oct. 5, 2026.

The CTO was issued as a result of the company's failure to file its audited annual financial statements, management's discussion and analysis, and related chief executive officer and chief financial officer certifications for the financial year ended May 31, 2026, by the prescribed filing deadline. The delay is due to additional audit work that remains outstanding in connection with certain significant transactions and valuation matters relating to the company's investment in Lions Bay Resources Pty. Ltd., a private South African company in which the company holds an equity interest. Management and the company's auditor continue to work diligently toward completing the audit.

The CTO prohibits trading in or purchasing any securities of the company in British Columbia and, pursuant to Multilateral Instrument 11-103 (Failure-to-File Cease Trade Orders in Multiple Jurisdictions) and applicable reciprocal order provisions, in other Canadian jurisdictions in which the company is a reporting issuer, until the CTO is revoked. Despite the CTO, a beneficial securityholder of the company who is not, and was not as of Oct. 5, 2026, an insider or control person of the company may sell securities acquired before that date if the sale is made through a foreign organized regulated market, as defined in Section 1.1 of the Universal Market Integrity Rules of the Canadian Investment Regulatory Organization, and through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation.

Trading in the company's common shares on the TSX Venture Exchange had been halted prior to the issuance of the CTO in connection with the company's pending change of business. As a result of the CTO, the exchange suspended trading in the company's securities, effective Oct. 6, 2026. Reinstatement to trading can occur only once the CTO has been revoked and the exchange has completed a reinstatement review to confirm that the company has complied with exchange requirements. If the company has not been reinstated to trading on Tier 2 of the exchange, or does not meet the exchange's Tier 2 continued listing requirements, by Jan. 5, 2027, the exchange may transfer the company's securities to the NEX board of the exchange without further notice.

The company is working to complete the required filings as soon as practicable and currently expects to file them on or before Oct. 30, 2026. The company intends to apply for a revocation of the CTO once the required filings have been completed and filed. The company will provide further updates as appropriate.

About Lions Bay Capital Inc.

Lions Bay Capital is a mining finance and investment company focused on unlocking the value of overlooked or underperforming resource assets, with a strategic emphasis on gold and copper.

We seek Safe Harbor.