Mr. Greg Davis reports

SUN PEAK CLOSES NON-BROKERED PRIVATE PLACEMENT

On Oct. 16, 2026, Sun Peak Metals Corp. closed its second and final tranche of its non-brokered private placement, as previously announced on Sept. 17, 2026, Sept. 23, 2026, and Oct. 6, 2026, for gross proceeds of $1,689,404.

With the closing of the Final Tranche, the company has now issued a total of 28,496,907 units of the company, at a price of 40 cents per unit for total aggregate gross proceeds in the offering of $11,398,762.

Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of 55 cents per warrant share for a period of two years from the date of closing of the applicable tranche of the offering.

The warrants will be subject to an accelerated expiry provision such that, if the volume-weighted average price of the company's common shares on the TSX Venture Exchange equals or exceeds $1.10 for 10 consecutive trading days, then the warrants will expire 30 days following the date on which the company either provides notice of acceleration to the holders of the warrants or issues a news release announcing the acceleration, in each case at the company's election.

The net proceeds of the offering will be used for exploration on the company's projects located in the Kingdom of Saudi Arabia and Ethiopia, the costs of the offering, and for general working capital.

In connection with the closing of the final tranche, the company issued 221,160 non-transferable finders' warrants to certain arm's-length finders and issued 221,160 units to an arm's-length finder. Each finder's warrant is exercisable to acquire one common share of the company at a price of 55 cents per common share for a period of two years from the date of closing of the applicable tranche of the offering. Each finder's unit has the same terms as the units issued to subscribers in the offering.

In connection with the offering, the company paid cash finders' fees of $103,440, issued 929,363 non-transferable finders' warrants to certain arm's-length finders, and issued 670,763 finders' units to an arm's-length finder.

The securities issued in connection with the offering are subject to a four-month-and-one-day hold period under applicable securities laws. The offering remains subject to the final acceptance of the TSX Venture Exchange.

Insider participation

Insiders of the company subscribed for a total of 375,000 units in the offering, for aggregate gross proceeds of $150,000. The participation of the insiders in the offering constitutes a related party transaction, within the meaning of TSX-V Policy 5.9 and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, in respect of the related parties' participation in the offering, as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the insiders, exceeded 25% of the company's market capitalization (as determined under MI 61-101).

About Sun Peak Metals Corp.

Sun Peak's portfolio is located within the Arabian-Nubian Shield, a highly prospective Precambrian mineral belt that hosts numerous VMS (volcanogenic massive sulphide), intrusion-related and orogenic gold systems, including Jabal Sayid and Mansourah in Saudi Arabia, and the Bisha mine and Asmara projects in Eritrea. The company's exploration strategy is focused on systematically advancing a pipeline of projects from regional target identification through drill testing.

In the Kingdom of Saudi Arabia, the company holds 13 exploration licences totalling 1,072 square kilometres along established VMS and gold trends, with applications pending for two additional exploration licences covering approximately 200 square km.

In Ethiopia, the company's Shire project comprises six exploration licences covering approximately 1,450 square km.

Sun Peak's team has a strong record of multiple mine discoveries within the Arabian-Nubian Shield, supported by significant capital-markets strength and experience.

We seek Safe Harbor.