Mr. Jonathon Deluce reports

ABITIBI METALS SECURES 100% OWNERSHIP OF THE B26 DEPOSIT AND ESTABLISHES A DISTRICT SCALE CONSOLIDATION PLATFORM ACROSS THE SELBAIE CAMP

Abitibi Metals Corp. has entered into a definitive agreement with Soquem Inc. to acquire Soquem's remaining 20-per-cent interest in the B26 polymetallic deposit, resulting in Abitibi securing 100-per-cent ownership of its flagship asset.

The transaction marks a significant milestone in the company's evolution from explorer to developer, providing full ownership and control of one of Quebec's largest undeveloped high-grade polymetallic deposits while simultaneously establishing a long-term pathway toward broader consolidation opportunities across the Selbaie mining camp.

The B26 deposit hosts a 2026 updated resource estimate comprising 13.0 million tonnes grading 2.1 per cent copper equivalent in the indicated category and 12.4 million tonnes grading 2.2 per cent copper equivalent in the inferred category for a combined 25.3 million tonnes, which has grown by 124 per cent since the company's initial option in 2023. Concurrent with this transaction, Abitibi is launching its largest drill program in company history, with active drilling already delivering high-grade results (see May 27 press release).

Transaction highlights:

• Full project consolidation: Abitibi becomes sole owner of B26, eliminating joint venture complexity and securing unencumbered control at a critical development inflection point, with the deposit remaining open both laterally and at depth;
• Capital-disciplined transaction structure: initial consideration of approximately $7-million, with milestones payments structured across feasibility and construction decision stages, preserving near-term capital flexibility and aligning cost directly with value creation;
• Simple, clean royalty structure: Soquem will retain a 1-per-cent net smelter return (NSR) royalty;
• Benefits of 100-per-cent ownership:
  • Full exposure to future resource growth and project economics;
  • Simplified project governance and decision making;
  • Enhanced flexibility for financing and strategic partnerships;
  • Greater control over infrastructure and development planning;
  • Increased ability to evaluate regional consolidation opportunities;
• District-scale consolidation pathway: secures a 10-year right of first refusal on Soquem's wholly owned Wagosic and Carheil properties, positioning Abitibi as the logical consolidator of the broader Selbaie camp;
• Immediate collaborative framework established: a joint technical committee will be formed with Soquem to advance both B26 and Wagosic concurrently, with initial metallurgical test work on blended material representing the first step toward evaluating combined development scenarios.

"Securing 100-per-cent ownership of B26 represents a transformative milestone for Abitibi Metals," said Jon Deluce, president and chief executive officer. "Over the past two years, we have increased the B26 resource by 124 per cent, assembled a highly experienced technical team and established a clear road map toward development. With full ownership now secured, we have complete control over the future direction of the project and the ability to maximize value for our shareholders.

"Equally important, this agreement establishes a strategic framework for future consolidation opportunities across the Selbaie camp. We believe B26 has the potential to become the cornerstone asset of a much larger regional development platform, and this transaction positions us to evaluate those opportunities from a position of strength.

"We are grateful to SOQUEM for their partnership and the foundational work they have done at B26. Without their exploration efforts and stewardship of the deposit, Abitibi would not be in the position it is today."

Under the definitive agreement, the parties have established a framework that provides Abitibi Metals with the opportunity to acquire the remaining 20-per-cent interest in the B26 project, subject to the following consideration payments:

• Upon closing of the transaction:
  • $5-million in cash, payable within 90 days of closing and subject to reduction by an amount equal to 20 per cent of the additional exploration expenditures incurred by Abitibi on the B26 project that are attributable to Soquem's interest, thereby offsetting amounts owing by Soquem under the joint venture;
  • $2-million in Abitibi Metals shares;
• Milestone 1 -- at the feasibility study stage or no later than three years following the closing date:
  • $6-million payable 50 per cent in cash and 50 per cent in shares;
• Milestone 2 -- at the construction decision stage or no later than five years following the closing date:
  • $6-million payable 50 per cent in cash and 50 per cent in shares.

In consideration for the transfer of the remaining interest, Soquem will retain a 1-per-cent NSR royalty on the B26 project, replacing the existing 2023 royalty under the joint venture, which is terminated at closing.

If a milestone payment is not made by the applicable deadline, Soquem will receive an additional NSR royalty and a reacquired equity interest in the B26 project, and a joint venture will be re-formed between the parties. A default at the feasibility study stage (three-year milestone) results in an additional 1-per-cent NSR royalty (total 2 per cent) and a 12-per-cent project interest; a default at the construction decision stage (five-year milestone) results in an additional 0.5-per-cent NSR royalty (total 1.5 per cent) and a 6-per-cent project interest. Abitibi retains the right to repurchase any additional NSR royalty for $2-million.

Potential consolidation of the Selbaie camp

The B26 deposit is located within the prolific Selbaie mining camp of northwestern Quebec, a district that has historically supported significant base metal production and contains multiple underexplored mineral systems. In addition to acquiring the remaining 20-per-cent interest in the B26 deposit, Abitibi Metals will benefit from a right of first refusal (ROFR) on the Wagosic and Carheil projects, both of which are 100 per cent owned by Soquem and strategically located within or in close proximity to the B26 project. The ROFR will remain in effect for a period of 10 years, providing Abitibi Metals with a strong pathway toward broader district-scale consolidation potential across the Selbaie camp.

To further strengthen collaboration between the parties, a joint technical committee will be established to collaboratively advance both the B26 and Wagosic projects. Initial metallurgical test work involving blended material from the two projects will represent one of the first steps in evaluating potential additional synergies and future collaborative opportunities.

Qualified person

Information contained in this press release was reviewed and approved by Louis Gariepy, PEng (OIQ No. 107538), vice-president, exploration, of Abitibi Metals, who is a qualified person as defined under National Instrument 43-101, and responsible for the technical information provided in this news release.

About Abitibi Metals Corp.

Abitibi Metals is dedicated to acquiring and exploring mineral properties within Quebec, with a particular emphasis on high-quality base and precious metal assets that offer significant potential for growth and expansion.

The company's flagship B26 polymetallic project, in a joint venture with Soquem (80 per cent Abitibi, 20 per cent Soquem), hosts a substantial and growing resource base:

• Indicated: 12.96 million tonnes at 2.08 per cent copper equivalent (1.19 per cent copper, 1.16 per cent zinc, 0.44 gram per tonne gold and 30.8 grams per tonne silver);
• Inferred: 12.34 million tonnes at 2.20 per cent copper equivalent (1.60 per cent copper, 0.16 per cent zinc, 0.68 gram per tonne gold and 8.1 grams per tonne silver).

The B26 project is strategically located just seven kilometres southeast of the formerly producing Selbaie mine. This proximity provides the project with access to key infrastructure required for potential mine development.

In addition to the B26 deposit, Abitibi's portfolio includes the Beschefer gold project; historical drilling has identified four notable, historical intercepts with a metal factor of over 100 grams per tonne gold, highlighted by 55.63 grams per tonne gold over 5.57 metres (BE13-038) and 13.07 grams per tonne gold over 8.75 metres (BE12-014) amongst four modelled zones. These promising findings highlight the potential for further gold discoveries within the project area.

We seek Safe Harbor.