Mr. Scott Sheldon reports

FLOW METALS OPTIONS ADJOINING EPITHERMAL GOLD PROJECT AT SIXTYMILE

Flow Metals Corp. has acquired the neighbouring gold project at Sixtymile. The new project covers a section of the northern thrust fault zone and part of an epithermal zone on the west-central part of the claim block.

"We have been working to expand our control of the Sixtymile gold district, and this acquisition is another important step in that strategy," said Scott Sheldon, president and chief executive officer of Flow Metals. "The expanded project now encompasses the headwaters of the historic Miller, Glacier, Bedrock and Little Gold placer-producing drainages, increasing our land position to approximately 16,800 hectares. In addition to strengthening our district-scale orogenic gold model, the acquisition adds a compelling epithermal exploration target on the western side of the property."

Option agreement

Pursuant to an option agreement dated July 30, 2026, between the company and an arm's-length party (the optionor), the company has been granted the sole and exclusive option to acquire an undivided 100-per-cent interest in 154 quartz claims located in the Dawson mining district in Yukon, subject to the 2.5-per-cent net smelter returns royalty described below.

To exercise the option, the company must make aggregate payments of $180,000 to the optionor in accordance with the following schedule:

• $10,000 on or before Aug. 7, 2027;
• $20,000 on or before Aug. 7, 2028;
• $30,000 on or before Aug. 7, 2029;
• $120,000 on or before Aug. 7, 2030.

At its election, the company may satisfy each payment entirely in cash or as to 50 per cent in cash and 50 per cent through the issuance of common shares of the company. If the company elects to satisfy any portion of a payment through the issuance of common shares, the number of common shares issuable will be calculated using the volume-weighted average trading price of the common shares on the Canadian Securities Exchange for the 30 trading days immediately preceding the applicable payment date. Any common shares issued under the option agreement will be subject to a four-month hold period and all other applicable resale restrictions under Canadian securities laws and the policies of the CSE.

In addition to the foregoing option payments, the option agreement provides for the following one-time milestone payments:

• Following the company's first public disclosure, in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects, of a mineral resource estimate confirming an inferred mineral resource or a mineral resource in a higher classification containing at least 500,000 ounces of gold or gold equivalent attributable to the property, the optionor may elect to receive either: (i) $100,000 in cash; or (ii) up to one million common shares of the company having an aggregate deemed value, based on the applicable 30-trading-day volume-weighted average trading price, as close as possible to, but not exceeding, $350,000.
• Following the completion of an aggregate of 2,500 metres of drilling on the property by or on behalf of the company, the optionor may elect to receive either: (i) $50,000 in cash; or (ii) up to 500,000 common shares of the company having an aggregate deemed value, based on the applicable 30-trading-day volume-weighted average trading price, as close as possible to, but not exceeding, $100,000.

For each milestone, the optionor must make its election within 30 days after receiving notice from the company. If the optionor does not make a timely election, the company will satisfy the applicable milestone payment using the alternative having the greater deemed value as of the applicable payment date. Each milestone payment is payable once only.

Upon exercise of the option, the optionor will retain a 2.5-per-cent net smelter return royalty on minerals produced from the property. At any time before the commencement of commercial production, the company may repurchase 40 per cent of the 2.5-per-cent royalty, representing a 1.0-per-cent net smelter return royalty, for $1.5-million, following which the optionor would retain a 1.5-per-cent net smelter return royalty.

Provided that the company has exercised the option, commencing on Aug. 7, 2031, and on each Aug. 7 thereafter until the commencement of commercial production, the company will be required to make an annual payment of $10,000 to the optionor. Each annual payment will be credited dollar for dollar against the $1.5-million royalty buyback price but will not otherwise reduce the royalty payable to the optionor.

The option agreement does not require the company to incur any minimum exploration expenditures on the property. Payments made and common shares issued under the option agreement are non-refundable. No finders' fees were paid in connection with the transaction.

The option agreement also establishes a one-kilometre area of common interest surrounding the property, excluding validly existing third party quartz claims. Mineral interests subsequently acquired by either party or its affiliates within the area of common interest during the term of the option agreement may, at the election of the other party, be included in the property in accordance with the terms of the option agreement.

Epithermal target

The newly acquired Sixtymile Border property contains geological features interpreted to be consistent with an epithermal hydrothermal system, including cinnabar-bearing polymetallic veins, extensive silicification and elevated arsenic values.

Northeast-trending resistive ridges are interpreted to represent silicified fault zones. Field observations include silica sinter, bladed quartz-lined vugs and rock samples returning arsenic values exceeding 10,000 parts per million. Andesitic volcanic rocks mapped on the property provide further evidence of the volcanic environment commonly associated with epithermal mineralization.

Flow interprets the combined property as having the potential to represent a telescoped hydrothermal system, where deep orogenic gold-bearing structures were subsequently reactivated and overprinted by younger magmatic-hydrothermal activity. Similar overprinting relationships are recognized in several productive gold districts around the world and may enhance gold remobilization and concentration where favourable structural pathways exist.

Low-sulphidation epithermal systems are globally recognized for hosting high-grade gold and silver mineralization. The identification of epithermal alteration adjacent to the company's previously identified orogenic gold targets introduces a second mineralization model within the Sixtymile district and significantly expands the exploration potential of the project.

Qualified person

The technical content of this news release has been reviewed and approved by Harley Slade, PGeo, a director of the company, who is a qualified person as defined by NI 43-101.

About Flow Metals Corp.

Flow Metals is a Canadian mineral exploration company focused on advancing district-scale opportunities in established mining regions. The company employs a systematic, technology-driven exploration approach to evaluate large mineral systems. The company's flagship Sixtymile gold project in Yukon targets the bedrock source of widespread placer gold mineralization across a contiguous land package. Flow Metals also owns the New Brenda project in Southern British Columbia, a porphyry copper-molybdenum system within the Quesnel terrane.

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