Mr. Mike Stier reports

SAGA METALS EXECUTES PROPERTY SALE AGREEMENT FOR THE NORTH WIND IRON ORE PROJECT IN LABRADOR

Saga Metals Corp. has executed a property sale agreement with Orion Iron Ore Ltd., an arm's-length vendor.

Orion is a private iron ore explorer focused on assembling and advancing a significant iron complex in the Labrador Trough through staking and strategic acquisitions of highly prospective ground. The company is led by a team of industry veterans who intend to leverage the region's world-class existing infrastructure and decades of historic exploration to accelerate targeting and resource delineation, with the goal of completing a public listing within the next 12 months.

Mike Stier, chief executive officer and director of Saga Metals, commented: "We believe every asset in our portfolio holds significant potential in the critical minerals space. As we have developed our project pipeline over the past several years, we have consistently demonstrated our ability to create shareholder value through non-dilutive opportunities, including our previous dealings with Rio Tinto. The sale of the North Wind iron ore project continues that disciplined approach. By securing equity in Orion, a board seat and a retained royalty, we maintain meaningful upside exposure to the Labrador Trough while sharpening our focus on our core critical mineral assets. This transaction reflects our ongoing commitment to unlocking value for shareholders in a thoughtful and strategic manner."

The Labrador Trough is a major Paleoproterozoic geological terrane stretching approximately 1,600 kilometres from Northern Quebec into Labrador. Formed in an Early Proterozoic rift basin, this linear belt of sedimentary and volcanic rocks hosts extensive banded iron formations of the Sokoman formation within the Knob Lake group. Since the 1950s, the district has produced well over three billion tonnes of iron ore and continues to support active mining and exploration.

Orion's current portfolio centres on two complementary properties within this proven corridor. The H2 property covers 11,425 hectares in Labrador, less than 10 kilometres from Schefferville, and is fully permitted for early-stage exploration, including prospecting and trenching. High-grade hematite and magnetite showings, supported by historic trenching, induced polarization surveys and airborne magnetics, occur along northwest-trending structures that remain open and relatively underexplored. The ground lies immediately along strike from active operations controlled by Tata Steel and Vale as well as the Cyclone Metals/Vale joint venture on Block 103 and several Labrador Iron Mines deposits and benefits from direct access to the Schefferville-Sept-Iles rail line, the Menihek hydroelectric station and an extensive road network.

Approximately 25 to 100 kilometres northwest of Schefferville in northeastern Quebec, the Lac Le Fer property comprises roughly 37,000 hectares across 738 claims in three contiguous blocks. These claims are underlain by the same tightly folded and structurally thickened Sokoman iron formation that hosts Tata Steel's Goodwood direct-shipping-ore deposits and Champion Iron's 16-billion-tonne Full Moon taconite resource. Surface sampling has returned 80 rock samples grading in excess of 55 per cent Fe2O3 (iron oxide) along a continuous 20-kilometre strike length that coincides with strong northwest-trending magnetic anomalies.

Together, these two properties with the addition of Saga's North Wind property give Orion a district-scale footprint in one of the world's most prolific and infrastructure-rich iron ore regions.

Saga's North Wind iron ore property

The North Wind iron ore property is located 16 kilometres southwest of Schefferville, Que., spanning 6,375 hectares across 255 claim blocks under a single licence. Its geological framework holds significant potential, reinforced by a portion of a historical resource estimate (National Instrument 43-101 compliant) completed in 2013 by New Millennium Iron.

Key property highlights

• High-grade iron ore potential: Iron content (Fe2O3) in grab samples from the Sokoman formation ranges as high as 84.57 per cent Fe2O3, with continuous high grade in the Lower, Middle and Upper Iron stratigraphies. The highest grab sample of 2025 returned 79.26 per cent Fe2O3, from the Middle Iron formation.
• Magnetite-rich ore: Davis-tube separation techniques confirm the presence of magnetite-rich taconite ore, along with the occurrence of hematite, limonite and goethite. These results are comparable with historical regional resources at the KeMag, Sheps Lake and Perrault Lake deposits, which boasted strong resource estimates.
• Extensive mineralization zone: Fieldwork identified iron ore mineralization over a four-kilometre northwest-southeast trend, with indications that the mineralized zone continues southeast. Mapping in the area suggests that the units dip shallowly to the northeast, which would make easy drill targets for resource estimation. Surface thickness of the mineralized trend ranges between 600 and 700 metres, underscoring the project's potential scale.

The Labrador Trough: a highly prospective and globally recognized iron region in Canada

In February, 2025, Cyclone Metals Ltd. announced that it signed a binding commercial agreement with Vale SA regarding the joint development of its Iron Bear iron ore project. Under the terms of the agreement, Vale has the right to provide up to $138-million (U.S.) of financing to the Iron Bear project in two phases and earn 75 per cent of the project. If Vale elects to proceed to decision to mine (DTM), Vale can elect to acquire the remaining 25 per cent of the Iron Bear project at fair market value or carry Cyclone to production with no dilution.

As reported in June of this year, Iron Bear Resources Ltd. has received an additional $2-million (U.S.) financing tranche from Vale for its flagship Iron Bear iron ore project in the Labrador Trough in Newfoundland and Labrador. This represents the fourth payment under their binding development agreement, bringing Vale's total contributions to $16.7-million (U.S.), with a final $1.3-million (U.S.) tranche expected this summer. The partnership allows Vale to invest up to $138-million (U.S.) across two phases to earn a 75-per-cent interest in the project.

Deal terms

As consideration for the sale of the property to Orion, Saga will receive:

• Four million common shares of Orion;
• One board seat within Orion to be held by Saga's CEO (Mr. Stier) to maintain corporate oversight;
• 2-per-cent gross overriding royalty (GORR):
  • Royalty purchase option:
    • 1 per cent may be repurchased at any time on or before the date of commencement of commercial production for $500,000;
    • After the fourth anniversary but before the date of commencement of commercial production (if applicable), $1.5-million.

Qualified person

Dr. A. Miller, PGeo, PEGNL, is an independent qualified person as defined under National Instrument 43-101 and has reviewed and approved the technical information disclosed in this news release.

About Saga Metals Corp.

Saga Metals is a North American mining company focused on the exploration and discovery of a diversified suite of critical minerals that support the North American transition to supply security. The 100-per-cent-owned Radar titanium-vanadium-iron project comprises 24,175 hectares and entirely encloses the Dykes River intrusive complex, mapped at 160 square kilometres on the surface near Cartwright, Labrador. Exploration to date, including 20,850 metres of drilling in the Hawkeye and Trapper zones, has confirmed a large, mineralized layered mafic intrusion hosting vanadiferous titanomagnetite (VTM) and ilmenite mineralization with consistently uniform grades of titanium, vanadium and iron.

The 100-per-cent-owned Wolverine heavy rare earth element project in Labrador is a near-surface REE system hosted within a peralkaline caldera complex that shares strong geological similarities with the Tanbreez and Strange Lake deposits. The project features consistent mineralization, with zones spanning 26 square kilometres, including drill assays up to 2.03 per cent TREO (total rare earth oxides), with approximately 28 per cent HREO (heavy rare earth oxides) content, and sample assays up to 21.6 per cent TREO.

The 100-per-cent-owned Double Mer uranium project covers 25,600 hectares and features uranium radiometrics that highlight an 18-kilometre east-west trend, with a confirmed 14-kilometre section producing samples as high as 0.428 per cent U3O8 (triuranium octoxide) (2024 Double Mer technical report).

Additionally, Saga owns the Legacy lithium project in Quebec's Eeyou Istchee James Bay region. This project spans 72,701 hectares and has geological attributes similar to nearby terrains currently being explored by Rio Tinto, Li-FT Power, Soquem and Loyal Metals.

With a portfolio spanning key commodities critical to the clean energy future, Saga is strategically positioned to play an essential role in securing critical minerals.

We seek Safe Harbor.