Mr. Mark Tommasi reports

CANARY GOLD PROVIDES EXPLORATION UPDATE ON MADEIRA RIVER PROJECT, RONDONIA, BRAZIL

Canary Gold Corp. has provided an update on its continuing exploration activities at its Madeira River project located in Rondonia, Brazil.

The company has received analytical results from samples collected and concentrated from the first 33 screw auger drill holes completed as part of its inaugural exploration program.

To date, the company has completed 63 shallow screw auger drill holes totalling 1,289 metres.

Above detection (greater than five parts per billion Au (gold)) assay results (range 10 ppb and 109 ppb Au) were reported from six widely spaced holes drilled within the footprint of and approximately five km by 10 km area initially targeted as a potential paleochannel system based on interpretation of available radiometric -- remote sensing and topographic data.

The reported gold values are isolated and discontinuous in nature and are not currently indicative of continuous mineralization or economic concentrations. These initial analytical results confirm the presence of gold, previously identified visually in initial pan concentrate samples from shallow, immature sand-gravel horizons infilling the newly identified, potentially extensive paleochannel system target area extending about 10 km east of the active Madeira river system.

The company is prioritizing the drill targeting of deeper, more mature, coarser sand-gravel sedimentary horizons (characterized by rounded quartz clasts, iron enrichment and the presence of ilmenite grains) infilling deeper sections within the paleochannel that could potentially host higher gold concentrations.

"These initial results are encouraging and provide early support for our interpretation of a laterally extensive paleochannel system at Madeira River. While the program remains at an early stage, the presence of gold within these shallow horizons across a broad area is an important step in advancing our understanding of the system. With RC drilling now under way, we are focused on systematically testing the deeper, more mature sedimentary horizons to better evaluate the potential of this target," stated Mark Tommasi, president.

The company has commenced a reverse circulation (RC) drilling program following the arrival of an RC drill rig on site. This program is designed to define the geometry and lateral extent of the paleochannel system and to test deeper horizons, potentially down to granite bedrock, where higher maturity sedimentary layers are interpreted to occur.

The company notes that active and historical gold production from the nearby Madeira River, located approximately 10 km west of the project, provides regional geological context for the presence of gold; however, such production is not necessarily indicative of mineralization on the company's property.

Exploration activities completed to date represent approximately 5 per cent of the company's planned exploration program and have been conducted over a limited portion of an interpreted 80 km prospective strike length. As such, the company emphasizes that its exploration program remains at an early stage.

Qualified person and technical disclosure

Sampling, analytical methods and QA/QC (quality assurance/quality control)

To date, the company has completed 63 shallow screw auger drill holes totalling 1,289 metres. Following geological logging of recovered drill core, one-metre interval samples are selected from core intervals intersecting targeted coarser-grained sand and gravel horizons within the sedimentary profile.

A half-core sample is collected from each selected interval, from which a concentrate is prepared using a centrifuge at the company's sample preparation facility in Porto Velho, Rondonia.

Centrifuge concentration is used to enhance the recovery of fine gold particles from unconsolidated sediments. The centrifuge process is used as a sample preparation step and does not represent a metallurgical recovery process. The resulting concentrates are submitted to SGS Laboratory in Vespasiano, Belo Horizonte, Minas Gerais, for low-detection fire assay analysis (FAA505) using a 50-gram aliquot.

The company continues to implement industry-standard quality assurance and quality control (QA/QC) procedures, including the insertion of blanks, standards and duplicate samples, as part of its analytical program.

Qualified person statement (NI 43-101)

The scientific and technical information contained in this news release has been reviewed and approved by Andrew Lee Smith, PGeo, a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

Mr. Smith has previously visited the company's project areas in Brazil and is familiar with the regional geology and exploration activities. He is not continuously present on site and relies on data, geological interpretations and sampling information provided by site-based qualified personnel. He has reviewed the available technical information and considers it to be reliable and suitable for the purposes of this disclosure.

Mr. Smith has verified the data disclosed in this news release, including sampling, analytical and test data, through review of laboratory reports, QA/QC results and supporting technical documentation.

Mr. Smith is not independent of the company within the meaning of National Instrument 43-101, as he serves as executive chairman of Canary Gold.

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 ten 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 has been satisfied through staged cash and share payments.

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 to 0.5 per cent) may be repurchased by the company at any time for $1.0-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.