Mr. Mark Haywood reports

EDM ANNOUNCES SECOND QUARTER 2026 UPDATE AND ADVANCEMENT OF KEY MILESTONES

EDM Resources Inc. has provided a summary of its activities during the second quarter of 2026 and has provided an update on key milestones supporting the advancement of the Scotia mine toward production.

The president and chief executive officer, Mark Haywood, stated: "The second quarter of 2026 was a transformational period for EDM. We achieved meaningful progress across permitting, capital markets, financing and project development, including commencement of trading on the OTCQB Venture Market, strengthening of our treasury through substantial warrant exercises by directors and major shareholders, and advancement of our gold exploration and technical programs. With the Fisheries Act Authorization process progressing well and preparations for the updated prefeasibility study advancing, we believe EDM is increasingly well positioned to advance the Scotia mine toward a production decision."

Second quarter 2026 highlights

Permitting and regulatory progress

• The company received the operational approval for its environmental assessment for the South West expansion project so that no further extensions are required.
• The Department of Fisheries and Oceans (DFO) has advised the FAA application is progressing well and now in the first nations engagement period.
• The company continues to work collaboratively with the first nations and DFO to address information requests received during the review process.
• The company remains encouraged by the progress of the review process and currently anticipates receiving the FAA decision during the summer or fall of this year.

Capital markets and liquidity

EDM share price trading continues to support our capital markets positioning with the market capitalization growing from $5.9-million at the start of the year to $47.2-million by the end of the quarter.

The company's quotation on the OTCQB Venture Market went live on June 1, 2026. EDM expects its common shares to be eligible for electronic clearing and settlement through the Depository Trust Company (DTC) in July which will facilitate more efficient trading and settlement within the United States.

Financing activities

• During the quarter, 1,541,324 warrants with a strike price of 14 cents were exercised, as well as 100,000 options, generating gross proceeds of $1,550,324.
• The company's share position at the end of the quarter was 80,013,322, with 22.6 million warrants and 5.7 million options outstanding.
• The remaining warrants represent potential additional proceeds of approximately $3.2-million if exercised.
• To allow for the permitting process to be completed, the Gypsum offtake agreement which provided for the exclusive sale of gypsum and related byproducts from the Scotia mine for an initial five-year term commencing upon commercial operations, has been extended to now begin by Dec. 31, 2027.

Exploration and resource development

• The first-phase gold exploration program is under way at the Scotia mine.
• The company has been evaluating the extent of the gypsum on the mine site, and provided the data to the resource modelling consultants to potentially provide additional mineral resources.
• Work on an updated National Instrument 43-101 mineral resource estimate (MRE) is progressing with a review of the potential additional gypsum and anhydrite mineral resources in progress.

Project development and technical work

• The company has submitted additional operational improvements to the mine and processing facilities as an amendment to the existing industrial approvals.
• Costing and scope definition for completion of the proposed NI 43-101 prefeasibility study (PFS) are being finalized with engineering firms.
• The company is also evaluating ore sorting equipment for the new crushing circuit which due to technological advancements in XRF sorting and AI belt analysis, may enable even greater elimination of waste rock material from entering the processing circuits.
• The company's mineral resource consultants have advised that the planned MRE update be included in the updated PFS, since a MRE is not normally performed once a PFS has been established.
• Part of the updated PFS work will be to include operational improvements approved in the amended industrial approval.

Outlook for third quarter 2026

EDM's focus for this quarter includes:

• Progression through the FAA regulatory review process;
• Expansion of United States investor access, digital investor engagement and shareholder communication programs;
• Advancement of the gold exploration program;
• Completion of engineering consultant selection and commencement of the proposed NI 43-101 prefeasibility study, including the updated mineral resource estimate;
• Receipt of initial offtaker financing terms;
• Continued strengthening of the company's capital structure.

About EDM Resources Inc.

EDM is a Canadian exploration and mining company that holds a 100-per-cent interest in the Scotia mine and related facilities near Halifax, N.S. Through its wholly owned subsidiary, EDM also holds several prospective exploration licences near its Scotia mine and in the surrounding regions of Nova Scotia.

We seek Safe Harbor.