Mr. Ryan Kalt reports

DIXIE GOLD INC. REPORTS ADDITIONAL ASUBPEESCHOSEEWAGONG ANISHINABEK CORRESPONDENCE

Dixie Gold Inc. (the issuer) was today electronically delivered correspondence from the Asubpeeschoseewagong Anishinabek (Asubpeeschoseewagong Anishinabek or Grassy Narrows), a first nation in Ontario (Canada), which sets out a variety of statements made by the Asubpeeschoseewagong Anishinabek and which also makes reference to certain third party litigation involving the Asubpeeschoseewagong Anishinabek.

The issuer refers to prior news release (Dixie Gold Inc. Receives Asubpeeschoseewagong Anishinabek Correspondence Regarding Mining Activities and Third-Party Litigation, dated Oct. 11, 2024).

Dixie Gold holds certain mining claims in the Red Lake, Ont., region commonly referred to as its Red Lake gold project. The corporation views its mining claims situated in Ontario, inclusive of those forming its Red Lake project, as validly subsisting, with all such mining claims having been duly granted and issued by the government of Ontario pursuant to the Mining Act, R.S.O. 1990, c. M.14, and its regulations.

A copy of the Asubpeeschoseewagong Anishinabek correspondence is available at the company's website.

The issuer makes note of a large geographical area(s) set out in the Asubpeeschoseewagong Anishinabek correspondence through an affiliated map, copy of which was not delivered but elsewhere source from the company's website.

Without adoption by the issuer, the corporation reproduces text from the Asubpeeschoseewagong Anishinabek correspondence:

"Your mining claims and other tenures continue the unlawful and harmful Crown conduct that is the subject of the lawsuit.

"Secondly, on July 12, 2024, Grassy Narrows served a notice of application on Ontario asserting that the mining act regime violates Section 35 of the Constitution Act, 1982, by failing to consult, accommodate or obtain consent prior to registering mining claims within the interim core area of interest for mining.

"Grassy Narrows is seeking a declaration that mining claims registered pursuant to this unconstitutional regime and further mining tenures derived from those leases are invalid, which would include any claims, leases and patents registered by your company in the area. Ontario did not consult, accommodate nor obtain consent from Grassy Narrows prior to registering your company's mining claims, and the leases, patents and other mining tenures derived from them.

"As relief, Grassy Narrows is seeking a declaration that 'existing mining claims, including mining activities such assessment work and exploration activities, and third party mining interests granted under the mining claim grant regime within the area are not consistent with Section 35 of the Constitution Act, 1982, and UNDRIP and are of no force or effect.

"If Grassy Narrows is successful in either or both of these legal proceedings, your company's mining claims and other tenures would potentially be impacted and could be invalidated."

At the present time, Dixie Gold is not a party to the Asubpeeschoseewagong Anishinabek third party litigation, and as such, is not able to reasonably determine nor reasonably assess the forward-moving impact, if any, that such external legal proceedings may have on the issuer and/or its Red Lake project.

To the best knowledge of the issuer, the general content of the Asubpeeschoseewagong Anishinabek correspondence was delivered to multiple mining companies operating in the Red Lake, Ont., region.

Outside of this disclosure release, the issuer does not intend to publicly comment on the Asubpeeschoseewagong Anishinabek third party litigation nor title assertions generally, unless and/or until circumstances require.

About Dixie Gold Inc.

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

We seek Safe Harbor.