Mr. Steve Hanson reports

SURFACE METALS INC. ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT FINANCING

Surface Metals Inc. has closed a first tranche of its non-brokered private placement financing, previously announced on Oct. 20, 2025. The company issued 1.6 million units at 20 cents per unit for aggregate gross proceeds of $320,000.

Each unit comprises one common share and one-half of one transferable common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of 40 cents for two years from closing of the offering.

The issuer intends to use the proceeds of the offering to finance technical work at its Nevada gold and lithium projects, as well as for general working capital purposes.

Finders' fees of $10,500 and 52,500 finders' warrants were paid to arm's-lengths parties in connection with the offering (each finder's warrant exercisable on the same terms as the warrants forming part of the units).

All securities that are issued pursuant to the offering are subject to, among other things, a hold period of four months and one day in accordance with applicable Canadian securities laws.

About Surface Metals Inc.

Surface Metals is a North American mineral exploration company focused on advancing a diversified portfolio of gold and lithium projects in Nevada, U.S., and Manitoba, Canada. The company's Cimarron gold project is located in Nye county, Nevada, in a historically productive gold district. It's Clayton Valley lithium brine project hosts an inferred resource of approximately 302,900 tonnes LCE (lithium carbonate equivalent) adjacent to Albemarle's Silver Peak mine. Surface Metals also holds additional lithium assets in Fish Lake Valley in Nevada and through a joint venture with Snow Lake Energy in southeastern Manitoba.

We seek Safe Harbor.