Mr. Mark Tommasi reports

CANARY GOLD EXPLORATION UPDATE - MADEIRA RIVER PROJECT, RONDONIA, BRAZIL

Canary Gold Corp. has provided the following exploration update to shareholders regarding continuing activities at its Madeira River project in Rondonia, Brazil, consistent with the company's previously announced exploration strategy and work programs.

As outlined in prior news releases, Canary has only recently commenced a large-scale, systematic drilling program across its expansive Madeira River tenement package. The company's exploration strategy is focused on identifying gold mineralization that is largely concealed beneath transported cover, requiring a methodical, data-driven approach. This style of exploration is inherently high risk/high reward, and results must be interpreted within the context of an early-stage program.

"This phase of drilling is focused on testing our geological model and building the data set required to guide future exploration," said Mark Tommasi, president of Canary Gold. "While the program remains at an early stage, the information collected to date is consistent with our stated exploration approach and will be used to progressively refine and prioritize targets."

To date, approximately 300 metres of drilling have been completed from a planned approximately 20,000-metre drilling program. At this early stage, the company cautions that it is too early to determine whether economic mineralization will be intersected. The initial phase of drilling is designed to test the underlying geological model and collect the data required to progressively refine and prioritize targets.

Encouragingly, results obtained to date are consistent with the exploration thesis previously disclosed by the company, supporting the geological framework underpinning the Madeira River project. These outcomes provide confidence that the company's targeting approach is appropriate and warrants continued systematic drilling.

As previously reported, the Madeira River project is located within a broader gold-bearing district that hosts historic and active artisanal (garimpeiro) workings, including those at Zelia and Santo Antonio, situated immediately contiguous to the north and south of the company's licences. These workings demonstrate gold endowment within the same regional geological setting being targeted by Canary and continue to support the prospectivity of the project area.

Mineralization on adjacent or nearby properties is not necessarily indicative of mineralization on the company's Madeira River project. The company has not independently verified the results reported from such adjacent properties.

The primary objective of the current drilling campaign is to generate a robust geological data set that will allow the company to refine targets and vector toward areas of potential mineralization. Canary expects that the 2026 drilling program, informed by the results and data collected during the current phase, will be critical in focusing exploration on the most prospective parts of the tenement package.

The company acknowledges that exploration of this nature requires patience. With only a small fraction of the planned drilling completed, Canary believes it is still in the early stages of unlocking the potential of the Madeira River project. In a supportive gold market environment, the company remains committed to disciplined execution of its exploration strategy and to providing transparent updates as work progresses.

Shareholders are encouraged to refer to previous company news releases for additional context regarding the exploration model, regional setting and planned exploration activities.

Qualified person statement (National Instrument 43-101)

The scientific and technical information contained in this news release has been reviewed and approved by Andrew Lee Smith, PGeo, executive director of Canary Gold, who is a qualified person as defined under NI 43-101, Standards of Disclosure for Mineral Projects. Mr. Smith is not independent of the company as he holds an executive and board position.

Data verification

In verifying the scientific and technical information disclosed herein, the qualified person has reviewed available geological logs, field notes, sampling documentation, heavy-mineral concentrate reports, analytical certificates, laboratory procedures and other relevant technical records associated with the company's 2025 exploration program. Verification included assessment of sampling methods, chain-of-custody protocols and analytical methods used by Overburden Drilling Management Ltd. (ODM), an independent Canadian laboratory specializing in heavy-mineral evaluation.

Stage of exploration

The information disclosed herein relates to early-stage exploration results, including heavy-mineral indicator mineral data, reconnaissance sampling and preliminary geological interpretations. Additional drilling and systematic sampling are required to further evaluate the significance of the geological features described.

Historical or third party information

Where the release refers to historical information, academic references or third party geological interpretations (including ODM's technical commentary), such data have not been independently verified by the qualified person.

About Canary Gold Corp.

Canary Gold is a Canadian public exploration company focused on the acquisition and advancement of gold projects in Brazil. The company holds an option to earn up to a 70-per-cent undivided interest in the Rio Madeira project through a series of staged exploration expenditures and milestone payments.

In August, 2025, Canary further expanded its regional strategy by entering into a definitive agreement to acquire a 100-per-cent interest in 10 additional mineral tenements totalling approximately 94,700 hectares from Talisman Venture Partners Ltd. , a private British Columbia corporation. The total consideration of $1.7-million is being satisfied through staged cash and share payments, a portion of which remains outstanding in accordance with the terms of the agreement.

Talisman retains a 1.0-per-cent net smelter return (NSR) royalty on future production from the acquired tenements, one-half of which (reducing the NSR royalty to 0.5 per cent) may be repurchased by the company at any time for $1-million.

Together, these interests provide Canary Gold with a dominant and strategically consolidated land position in the Madeira River region of Rondonia state -- one of Brazil's most prospective yet underexplored gold provinces.

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