Mr. Dino Cremonese reports

PROPOSED SPINOUTS/UPDATE RE RAM PROPERTY DRILLING

Teuton Resources Corp. has provided information regarding further spinouts of its assets as well as an update on the recently completed Ram property drilling in the southern portion of British Columbia's Golden Triangle. In May of 2025, Teuton successfully completed a spinout of its Luxor Group properties to Luxor Metals Ltd., a company currently listed on the TSX Venture Exchange (LUXR).

Spinouts

Proposed spinout No. 1 -- Mineral properties east and southeast of Stewart, B.C., in the Goliath Resources-Dolly Varden Silver-Red Mountain/Ascot Resources area:

The company proposes a spinout of all of its mineral properties jointly or otherwise owned with Silver Grail Resources Ltd. These properties, part of the Skeena mining division, include the Ram, Clone, Fiji, Tonga, Gold Mtn., Konkin Silver and Silver Baron -- all of which are owned 50-50 with Silver Grail; another property, the Midas, is currently owned 75 per cent by Teuton and 25 per cent by Silver Grail. The Roman property within the New Westminster mining division is also jointly owned with Silver Grail and will be included in the package that is spun out.

A geological consultant is presently preparing a National Instrument 43-101 report on the Stewart area properties described above after having made site visits earlier this summer.

Proposed spinout No. 2 -- Net smelter royalty (NSR) interests in the sulphurets hydrothermal system (Treaty Creek/Tudor Gold Corp., Brucejack et al properties/Newmont Mining and Crown project/Goldstorm Metals) and NSR interests in the Stewart region of B.C.'s Golden Triangle; six additional mineral properties.

The most prospective of the 10 NSR interests in the sulphurets hydrothermal system are held within the Treaty Creek property currently owned 80 per cent by Tudor Gold and 20 per cent by Teuton Resources (Teuton's 20-per-cent interest is carried until such time as a production decision is made). Full details of these NSR interests are available on the company website in the royalties section. A 2.5-per-cent NSR interest in Goldstorm Metals' (GSTM) Orion property has also become quite prospective recently (refer to a news release issued by Goldstorm Metals on Sept. 25, 2025, on file with SEDAR+).

In addition to the NSR interests which will be transferred as stated above, Teuton also plans to transfer its interests in currently wholly owned properties such as the Bonsai, Harry, Horatio, Lord Nelson and Stamp properties, all within the Golden Triangle. Also to be transferred is its current 45-per-cent interest in the Del Norte property (Decade Resources owns the other 55-per-cent interest after recently earning its interest pursuant to the terms of an option agreement). Teuton currently holds NSR buybacks in the Del Norte property which would also be transferred.

Spinout procedures

The tax implications of the spin-out are presently being studied to determine the most efficacious method of transferring the assets. Once this is resolved, the spinout will advance to a more formal stage involving a share capital reorganization effected through a statutory plan of arrangement. Under the arrangement, Teuton will transfer the defined assets to a wholly owned subsidiary (in the case of spinout No. 1 to Company X, in the case of spinout No. 2 to Company Y. Names for these companies have not yet been chosen. The spinout transaction will be effected pursuant to the arrangement provisions of the Business Corporations Act (British Columbia) and must be approved by the Supreme Court of British Columbia and by the affirmative vote of two-thirds of Teuton's shareholders in attendance at a shareholders' meeting.

Upon completion of both arrangements, Teuton's shareholders will own shares in three public companies (Teuton and the two spinouts). Teuton will issue a comprehensive news release at the beginning of the formal stage for each of the two spinouts which will outline all of the steps that must be taken to complete the spinout.

Additional assets may be transferred to Company X and Company Y such as cash, securities or land. This will be determined with the help of the company's advisers. The number of Company X and Company Y shares to be assigned to shareholders of Teuton is yet to be determined but will be based on a pro rata amount according to their holdings at the time of the transaction.

Comment re spinouts

Dino Cremonese, PEng, president of the company, said: "Teuton holds a compelling asset in the Treaty Creek property, host to the large Goldstorm copper-silver-gold deposit, but its many other assets, including royalties and highly prospective mineral properties in the Golden Triangle, have often been overshadowed by this interest. Moving the non-Treaty Creek interests into the proposed spinout companies will give these assets a chance to be valued on their own merits. It also opens the way for a purchaser to take over Teuton's 20-per-cent carried Treaty Creek interest without buying these other assets. Teuton shareholders benefit from receiving shares in two new spinout companies, either of which (or both) could by virtue of future exploration success grow into much larger concerns."

Update re Ram property

Drilling is now complete at the Ram property with 2,056 metres having been drilled in seven holes. All of the core has now been logged and diamond sawed and final shipments to the assay lab are expected within the next days. MSALabs has been instructed to hold all assays until such time as samples from all seven holes have been completed.

During the final days of the drill program, Teuton director Jeff Kyba, PGeo, visited the Ram property as well as the company's Clone, Konkin Silver and Fiji properties. While walking the surface projection of hole No. 7, Mr. Kyba discovered a new showing of net-textured chalcopyrite. Also included in the URL section are a number of photos taken by drillers during the program of various select examples of mineralized core.

Qualified person

Mr. Cremonese, PEng, is the qualified person for Teuton Resources; as president and CEO of Teuton he is not independent of the company.

About Teuton Resources Corp.

Teuton owns interests in more than twenty properties in the prolific Golden Triangle area of northwestern British Columbia and was one of the first companies to adopt what has since become known as the prospect generator model. This model minimizes share equity dilution while at the same time maximizing opportunity. Earnings provided from option payments (received in cash and often also in shares of the optionee companies) has provided Teuton with substantial income.

We seek Safe Harbor.