Mr. Meris Kott reports

PEGASUS MERCANTILE EXPANDS AS PROSPECT GENERATOR

Pegasus Mercantile Inc. has signed a non-binding letter of intent to acquire Omega Gold Corp. (OGC), based in British Columbia.

"Investors are looking for new opportunities from Canadian prospect generators and advisory companies like ours. As global investment master planning changes, our shareholders who invested primarily in the U.S. are now looking for more diversification in their portfolios. We continue to execute our business development strategy and augmenting our pipeline with a potentially first-class acquisition like OGC has tremendous potential. This is an exciting opportunity for our shareholders and new investors," said Meris Kott, chief executive officer.

Pegasus signed a non-binding LOI today with OGC, and the company will have a 30-day due diligence period with a deadline of Feb. 28, 2026, to sign a definitive agreement subject to the CSE and regulatory approvals. OGC will then become a wholly owned subsidiary of Pegasus.

This transaction includes the OGC subsidiary, Formacion Yura Exploracion SAC, in which OGC has a earned a 61-per-cent controlling interest in Formacion Yura and its 3,225-hectare Rio Bravo gold claims near Arequipa, Peru. OGC has approved drilling permits in place. OGC intends to begin 3,000 metres of exploration drilling shortly after the definitive agreement is formalized. Pegasus will ensure that the National Instrument 43-101 technical report is updated and that sufficient funds are available to support the Rio Bravo project. The Rio Bravo property is accessible by paved and gravel roads and is proximate to a 220-kilovolt hydroelectric transmission line. OGC owns additional rights to approximately 2,255 hectares of mineral concessions contiguous and nearby the Rio Bravo claims. The combined concessions are hosted on the Incapuquio fault and are located 25 kilometres from the Cerro Verde copper mine -- the fifth largest in the world. The OGC claims host a disseminated orogenic gold target with gold-bearing zones of sericite-illite, quartz vein stockworks and chalcedony are seen at higher and lower elevations topographically.

About Pegasus Mercantile Inc.

Pegasus is a prospect generator that provides high-growth companies with financial, operational and management assistance. The company has expanded and is entering a new phase of diversification.

The focus of the company has been on global wellness, psychedelics, mycology, hemp and CBD (cannabidiol), and health-care-related target companies and their clinical studies and trials.