Mr. Nicholas Koo reports

DIXIE GOLD INC. ANNOUNCES CHANGE TO STOCK OPTION PLAN

Dixie Gold Inc.'s board of directors has approved the implementation of a new fixed 10-per-cent stock option plan, subject to final acceptance by the TSX Venture Exchange.

The fixed plan is to replace the corporation's current rolling 10-per-cent stock option plan. Unlike the rolling plan, the fixed plan sets a prescribed limit to the number of available stock options and does not automatically increase the rolling availability pool of stock options should the corporation's issued and outstanding shares increase. In this regard, fewer stock options may be available on a forward basis for the corporation to issue under a fixed plan versus a rolling plan, thus prospectively enhancing the corporation's capital structure for shareholders. In addition, certain obligations, inclusive of recurring exchange fees required to be generally paid when a rolling plan is in use, are not applicable to a fixed plan given specific non-variable differences between the two plan types, which may in turn help to reduce regulatory expenses that would otherwise be borne by the corporation in the future.

Under the fixed plan, the corporation shall be permitted to grant up to an aggregate of 3,173,719 stock options to encourage equity participation among management, directors and consultants, including through the acquisition of common share equity in the corporation if granted stock options are exercised. Stock option plans aim to help enable companies, including the corporation, to attract and retain qualified personnel and expertise.

Dixie Gold has 1,125,000 options currently outstanding under its previous stock option plan and a further 2,048,719 options are reserved and available for issuance under the fixed plan.

The fixed plan was adopted by the corporation, effective as of Nov. 5, 2024.

Stock options granted pursuant to the fixed plan cannot be exercised until receipt of exchange approval of the fixed plan. If exchange approval is not obtained, the stock options granted under the fixed plan will terminate.

About Dixie Gold Inc.

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

We seek Safe Harbor.