Mr. Robin Dunbar reports

GRID METALS PROVIDES PROJECT UPDATE AT ITS FALCON WEST CESIUM PROJECT; GRANTS INCENTIVE OPTIONS

Grid Metals Corp. has provided an update on its Lucy South cesium deposit at its Falcon West property in southeastern Manitoba. The Falcon West property is subject to a joint venture between Grid (85 per cent, operator) and Avenir Minerals Ltd. (15 per cent). Terms of the joint venture agreement with Avenir were announced by Grid on July 20, 2026. Subsequent to this, Grid announced an initial mineral resource estimate for Lucy South on Sept. 30, 2026.

Project update

The company has engaged AEcom Canada ULC to prepare a high-level mine plan, site design and infrastructure requirements list that will be included in an environment act licence (EAL) application for the project that AEcom will complete, with Grid's assistance. AEcom is a leading global infrastructure consulting firm that delivers professional planning, design, permitting, engineering and construction management services.

Robin Dunbar, Grid's president and chief executive officer, commented: "Initial project activities for the Falcon West project are centred on potential extraction of the recently announced, near-surface cesium resource at Lucy South. Our site team, headed by Dave Peck, VP, exploration, have an array of work initiatives under way including mineralogical characterization studies, metallurgical testwork, engagement activities and the engineering work announced today. With cesium predominately hosted in pollucite, the principal feedstock to the global cesium chemicals industry, all of these initiatives are aimed at the production of a saleable concentrate on site using conventional, low-cost crushing and ore sorting, and without the need for any water in the process. Cesium is a highly sought after and rare critical metal that we would like to bring to market in an environmentally responsible and sustainable way."

Grant of incentive awards

On Oct. 6, 2026, the board of directors approved the grant of an aggregate total of 850,000 stock options to purchase common shares of the company under the company's rolling equity-based incentive plan. The grant includes a total of 450,000 stock options granted to two investor relations consultants, Grignan Holdings Ltd., doing business as Peterson Capital, and Triomphe Holdings Ltd. doing business as Capital Analytica. The investor relations consultants' options are exercisable at a price of 20 cents, for a term of 36 months, and vest 25 per cent every three months, beginning three months from the date of grant. Additionally, a consultant of the company has been granted 400,000 stock options which are also exercisable at a price of 20 cents for a term of 36 months, vesting six months from the date of grant.

About cesium and the cesium market

Cesium is the heaviest stable alkali metal with a unique set of characteristics due to its position on the periodic table. It is highly reactive, has excellent photoelectric properties and has a large ionic radius. It is the metal of choice across a number of applications, including atomic clocks, 5G infrastructure, defence targeting optics and next-generation green tech.

Cesium is defined as a critical metal by both Canada and the United States owing to its supply chain vulnerability. There is currently believed to be a significant shortage of cesium feedstock globally. The industry revolves around extreme supply concentration with the United States and several European allies being 100-per-cent net import reliant for their cesium needs. Pollucite has historically been the mineral of choice for cesium extraction given its high cesium content.

About Lucy South

• The Lucy South cesium deposit contains an open pit measured resource for the lithium-cesium-tantalum (LCT) zone of 51,500 tonnes at 2.58 per cent Cs2O and 1.47 per cent Li2O2; the LCT zone encloses a higher-grade cesium-rich Pollucite zone containing a measured resource of 15,600 tonnes at 5.19 per cent Cs2O and 1.76 per cent Li2O.
  • Total contained metal in the measured category of 1,322 tonnes Cs2O.
• This resource is believed to be the second-largest cesium resource in active development globally.
• The resource is contained within a highly fractionated LCT pegmatite, the Lucy South pegmatite and covers an area of approximately 120 metres by approximately 50 metres, and has an average depth from surface of approximately 20 metres.
• It is located 130 kilometres east of Winnipeg and 500 metres north of the TransCanada Highway. It is proximal to the intracontinental railway system and Manitoba's low-cost hydroelectric power grid.
• The resource is partly open along strike and down dip.

About Falcon West

• The focus of the Falcon West joint venture between Grid (85 per cent) and Avenir (15 per cent) is to establish a producing cesium operation at the Lucy South cesium zone. Cesium is a rare critical metal with a number of forward-facing industrial uses. The scope of the project is to establish a small footprint operation that uses crushing and XRT ore sorting (no water utilized or extensive infrastructure) in the production of a cesium-bearing pollucite concentrate to be sold to downstream cesium chemical producers.
• Falcon West consists of 124 unpatented mining claims located 130 km east of Winnipeg and is transected by the Trans Canada Highway. Most of Grid's exploration efforts have focused on the Lucy claims in the northeastern part of the property.
• Exploration potential in the project area remains high with a number of occurrences of spodumene and pollucite mineralization noted in the immediate project area (the Artdon-Lucy target area) that extends for greater than one km along strike and greater than 500 metres across strike. Of note is a large gap in historical drilling between the Artdon LCT pegmatite occurrence in the west and the Lucy South and Lucy North LCT pegmatites in the east.
• The company is also eying the potential for an expansion of the Artdon-Lucy LCT-pegmatites beyond the immediate target area. A strong magnetic low anomaly interpreted to reflect a large volume of near-surface granitic pegmatite coincides with the Artdon-Lucy pegmatite trend and extends several km along strike in both directions.

Qualified person statement

Dr. Dave Peck, PGeo, is a qualified person as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, and has reviewed and approved the scientific and technical information disclosed in this release. Dr. Peck is not independent of the company within the meaning of NI 43-101 as he is an officer of Grid.

About Grid Metals Corp.

The company is one of the largest mineral rights holders in the province of Manitoba with over 250,000 hectares of mineral claims and exploration licences registered to Grid. The current focus of Grid is its Falcon West property, which is advancing toward commercial production following the release of a maiden cesium resource at the Lucy South deposit. A summary of Grid's mineral properties in Manitoba include:

1. The Falcon West property (Li-Cs) is located 130 kilometres east of Winnipeg along the Trans-Canada Highway and contains an open pit measured mineral resource at the Lucy South deposit of 51,500 tonnes grading 2.58 per cent Cs2O and 1.47 per cent Li2O2. The property is subject to a joint venture agreement with Avenir, which has a 15-per-cent interest in the property.
2. The Makwa property (Ni-Cu-PGM-Co), which is subject to an option and joint venture agreement with Teck Resources Ltd. Teck can earn up to a 70-per-cent interest in Makwa by incurring a total of $17.3-million, comprising project expenditures ($15.7-million) and cash payments or equity participation ($1.6-million) with Grid. Makwa is located on the south arm of the Bird River greenstone belt and contains an open pit indicated mineral resource of 14.2 million tonnes grading 0.48 per cent nickel, 0.11 per cent copper and 0.37 g/t palladium.
3. The Mayville property (Cu-Ni) is located on the north arm of the Bird River greenstone belt. Grid owns a cumulative 89-per-cent interest in the project. The project contains an open pit indicated mineral resource of 32.0 million tonnes grading 0.40 per cent copper, 0.16 per cent nickel and 0.13 g/t palladium.
4. The Donner property (Li-Cs) is adjacent to the Mayville property, and Grid owns 75 per cent of the project. The project contains an open pit inferred mineral resource of 2.1 million tonnes grading 1.42 per cent Li2O and an underground inferred mineral resource of 4.7 million tonnes grading 1.37 per cent Li2O5.
5. The Thompson East (Cu-Ni-PGM) property is located east of the city of Thompson in north-central Manitoba and captures a number of high tenor Cu- and PGE-rich magmatic sulphide occurrences that are interpreted to be related to the development of the adjacent Thompson nickel belt. The property is subject to an option and joint venture agreement with Boliden Mineral Canada Ltd. Boliden is currently sole-financing early stage exploration on the property.
6. The 100-per-cent-owned Fox River (Cu-Ni-PGM-Au) property located in the Gillam region of northeastern Manitoba and covering 90 km of strike of the highly prospective Fox River belt -- a direct analogue to the Raglan nickel district in Northern Quebec.

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