Mr. Greg Davis reports

SUN PEAK METALS COMMENCES MAIDEN DRILL PROGRAM AT HIGH-PRIORITY HALAHILA GOLD-COPPER VMS PROJECT

Sun Peak Metals Corp. has commenced its maiden diamond drill program at the company's 100-per-cent-owned Halahila gold-copper volcanogenic massive sulphide (VMS) project in the Kingdom of Saudi Arabia (KSA). The approximately 2,500-metre drill program follows the successful completion of drilling at the Safra VMS project and marks the company's second drill campaign in Saudi Arabia this year.

Highlights

• Maiden diamond drill program under way at the Halahila project, with approximately 2,500 metres planned.
• Initial drilling will target the Halahila Main zone, where recent exploration has identified a 650-metre-long mineralized gossan up to 30 metres wide. The program may be expanded based on results.
• Surface sampling at Halahila Main returned assays of up to 16.35 grams per tonne gold and 180 g/t silver.
• Geophysical surveys have identified electromagnetic (EM) conductors beneath the Halahila Main zone, representing compelling targets for subsurface sulphide mineralization.
• Drill mobilization follows the successful completion of 1,242 metres of drilling across 10 holes in two target areas at the Safra VMS project. Core samples have been submitted to SGS Laboratory (Turkey) for assaying and will be reported when available.

"Halahila has rapidly emerged as one of the most compelling exploration targets in our Saudi Arabian portfolio," said Arron Albano, exploration manager of Sun Peak. "The project exhibits many of the hallmarks of a significant VMS system, including extensive hydrothermal alteration, a 650-metre-long gold and silver-bearing gossan, strong surface geochemistry, and conductive targets at depth that may represent sulphide mineralization. Recent exploration has also identified additional mineralized gossans along a five-kilometre trend south of Halahila Main, highlighting the district-scale potential of the system with a total length of 10 kilometres. This maiden drill program represents the first opportunity to test targets at depth and evaluate the potential for a significant new VMS discovery."

"We are pleased to have drilling under way at Halahila immediately following the successful completion of our maiden drill program at Safra," said Greg Davis, president and chief executive officer of Sun Peak. "Advancing multiple projects from exploration to drilling reflects the strength of our team in the kingdom and the advantages of operating in Saudi Arabia, where a supportive regulatory environment, excellent infrastructure and strong government commitment to mining continue to accelerate project development. With drilling now under way at Halahila and core samples from Safra currently being assayed, we look forward to a steady stream of catalysts as we advance our growing Saudi Arabian portfolio."

Halahila drill program

The Halahila project is located within the Precambrian Arabian Nubian Shield and hosts a district-scale package of prospective volcanic and sedimentary rocks interpreted to be favourable for precious metal-rich VMS mineralization.

The initial drill program is designed to test priority targets beneath the Halahila Main zone, where geological mapping, geochemical sampling and geophysical surveys have identified coincident indicators of a potentially significant mineralized system. Drilling will focus on areas where TDEM surveys have defined conductors, over a strike length of 4.1 kilometres, and beneath the 650-metre-long gossan, interpreted as potential sulphide mineralization at depth.

Recent exploration has expanded the project's mineralized footprint, identifying multiple additional gold- and silver-rich gossans along a corridor extending approximately five kilometres south of Halahila Main. These gossan zones are untested and underscore the district-scale potential of the project and provide a pipeline of follow-up targets for future drilling.

The planned 2,500-metre program will consist of multiple diamond drill holes designed to test the geometry, continuity and sulphide potential of the primary target areas. Drill core will be logged, sampled and submitted to accredited laboratories for analysis, with assay results expected following completion of the program.

Results from both the recently completed Safra drill program and the continuing Halahila campaign are expected to generate a consistent flow of exploration news through the remainder of 2026. Both projects have excellent access and favourable logistics, as do all of Sun Peak's projects in the KSA.

About the Halahila project

The Halahila project is one of Sun Peak's 100-per-cent-owned exploration assets in Saudi Arabia and forms part of the company's growing portfolio of VMS and precious metals projects in the Arabian Nubian Shield. Exploration completed to date has identified extensive hydrothermal alteration, numerous gossan occurrences, precious metal enrichment and geophysical targets consistent with VMS mineralization.

Qualified person

Arron Albano, PGeo, is the qualified person overseeing Sun Peak's exploration projects in Saudi Arabia and has reviewed and approved this press release.

About Sun Peak Metals Corp.

Sun Peak Metals is focused on district-scale VMS base metal and gold projects in the Kingdom of Saudi Arabia and Ethiopia.

In Saudi Arabia, the company holds 13 exploration licences totalling 1,072 square km along established VMS and gold trends, with an additional approximately 200 square km under application.

In Ethiopia, the company's Shire project comprises six exploration licences covering approximately 1,450 square km within the Arabian-Nubian Shield, a highly prospective belt that hosts major deposits such as the Bisha mine and the Asmara projects in Eritrea.

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