Mr. Ryan Kalt reports

DIXIE GOLD INC. PROVIDES FISCAL SUMMARY FOR THE RED LAKE GOLD PROJECT

Dixie Gold Inc. has provided a fiscal summary to recap certain completed efforts related to its gold project in Ontario (the Red Lake gold project).

As outlined, during the past 24 months, the Red Lake Gold project has received more than $600,000 of expenditures (the third party expenditures), which the corporation views to be a significant amount relative to its listed-market capitalization, as well as in terms of a greenfield expenditure at a grassroots exploration project.

Almost exclusively, recent expenditures at the Red Lake gold project have occurred without the corporation needing to finance those exploration-related expenses, that is they were third party incurred during a project-level earn-in (since discontinued). As such, the corporation achieved capital structure benefits by avoiding the share dilution that such expenditures would likely have otherwise necessarily required had a similar project-level expense been comparably financed on a internal basis. Dixie Gold believes that its management approach and risk strategy to address the speculative nature of exploration has been prudent considering both market conditions for junior equities and the high degree of risk inherent in early stage exploration.

Third party filing

As previously disclosed by the corporation, resulting assessment report (as pertains to the third party expenditures) was publicly filed, by the third party, with the relevant provincial authority.

Interested parties may continue to find that third party assessment report through the applicable provincial authority website.

As described in that third party report, no further work at the Red Lake gold project was recommended by that third party.

For convenience purposes only, a direct link to the third party report, as is externally hosted by the government of Ontario, using third party link, may be accessed by way of the Geology Ontario website.

The corporation cautions that it does not assume responsibility for the accuracy and/or opinions and/or findings contained within third party documents, including but not limited to, third party assessment reports filed with provincial authorities and/or hosted on third party and/or external websites.

Fiscal overview of project and risks

Following the subsequent resolution of certain third party litigation related to the corporation's Red Lake gold project during the middle of 2023 (as disclosed and detailed by past news releases issued by the corporation), Dixie Gold has been engaged in claim management activities related to the Red Lake gold project, including but not limited to applying assessment credits at the project, including those generated by the third party expenditures and other tenure-related activities.

As fiscal recap, since assembly of the Red Lake Gold project was completed in early 2020, more than $1-million of project-level exploration work has been undertaken and completed, and such financial expenditures have either been funded directly by Dixie Gold (as detailed in the corporation's financial statements and past news releases, available through SEDAR+), or as otherwise financed indirectly by third party.

Despite this level of material direct and indirect financial expenditure, the corporation is not aware of any drill targets having been identified to date at its Red Lake gold project that would otherwise justify or enable inaugural drilling to be based around at the present time.

From a fiscal perspective, and despite project-level work in excess of $1-million at the Red Lake gold project, including the aforementioned summary of expenses incurred by both the Dixie Gold and a senior gold company, it is not known or determinable by the corporation as to what amount of expenditure may ultimately be required to define one or more drill targets, if such targets exist, and/or if such undertaking would be made.

The corporation notes that to the extent it purses substantial forward-moving exploration at the Red Lake gold project, on a direct basis, it would likely require sourcing additional and material amounts of capital, to the extent a funding market exists, which it believes may carry a significant cost of capital within the speculative part of the early stage exploration funding curve (due in part to the corporation's listed-market capitalization and expenditures at the Red Lake gold project to date). The corporation advises that a material amount of forward work at the Red Lake gold project, to the extent then-deemed to be of merit by the corporation and/or then-retained third party consultants, may involve material risk of dilution given the listed-market capitalization of Dixie Gold (see also the "risks and uncertainties" sections of the corporation's financial reports available on SEDAR+).

The corporation continues to review its project portfolio on an ongoing basis and may vary forward focus within or through addition where, without limitation, it believes market and/or project conditions warrant.

About Dixie Gold Inc.

Dixie Gold is a publicly traded exploration company holding a portfolio of exploration projects in Canada.

We seek Safe Harbor.