Mr. Gordon Aldcorn reports

CORPORATE UPDATE - QCM PROPERTY EXPLORATION UPDATE

Kestrel Gold Inc. has provided shareholders and the investment community with an exploration update on its 100-per-cent-owned QCM property, located in the Manson-Germanson district of British Columbia, where Centerra Gold Inc. is advancing an option earn-in program with CGSI as project operator. This release summarizes highlights from the 2026 surface exploration program, completed in the second quarter of 2026, and from Centerra's 2025 diamond drill program, completed in the fourth quarter of 2025.

Q2 (second quarter) 2026 surface exploration program

Following the 2025 drill program, Centerra conducted a regional soil sampling, prospecting and structural mapping program at QCM during June, 2026, focused on the historical Flagstaff showing and surrounding target areas. Field crews mobilized to site on June 9, 2026, with geological and geochemical activities conducted from June 13, 2026, to June 25, 2026:

• 784 of 1,011 planned priority 1 soil samples were collected, completing the priority 1 sampling program; remaining planned sites could not be sampled due to unfavourable ground conditions (glaciofluvial cover, insufficient fine material or wetland terrain);
• 96 of 364 planned priority 2 soil samples (26 per cent) were collected, with the program continuing;
• 100 rock samples were collected across the property;
• 59 outcrop exposures were documented and 40 high-confidence structural measurements were recorded.

Mapping at the Flagstaff showing identified intense iron carbonate and moderate mariposite alteration within approximately 50 metres (m) of the historic drill collars, together with three distinct quartz vein orientations. Approximately 500 m southeast of Flagstaff, follow-up work at historical anomalies (up to 0.74 gram per tonne (g/t) gold (Au) in soil and 0.15 g/t Au in rock) identified similar alteration and vein characteristics, including localized zones of 5 to 7 per cent pyritohedral pyrite, indicating potential for the Flagstaff-style mineralized footprint to extend along strike.

2025 drill program highlights (previous released)

Centerra completed 9,110.5 metres of diamond drilling in 36 holes between May 25, 2025, and Oct. 31, 2025, comprising 6,305.5 metres at the main zone and 2,805.0 metres at the 14 vein target, located approximately seven kilometres (km) apart on the property. Drill results were announced previously in news releases dated Oct. 10, 2025, and Feb. 10, 2025. Please see these news releases for full details.

Main zone

Drilling confirmed and extended historically known gold mineralization, defining a zone of continuous mineralization approximately 500 m long by 180 m wide by 180 m deep that consistently returns average grades of 0.5 to 0.8 g/t Au. Results indicate the zone remains open to the northwest. Selected highlights include:

• QCM-25-006: 137.00 m at 0.522 g/t Au from 136.00 m;
• QCM-25-005: 48.00 m at 0.823 g/t Au from 87.00 m;
• QCM-25-033: 72.00 m at 0.578 g/t Au from 152.00 m;
• QCM-25-036: 93.94 m at 0.501 g/t Au from 18.06 m;
• QCM-25-035: 72.00 m at 0.591 g/t Au from 319.00 m;
• QCM-25-002: 19.00 m at 0.798 g/t Au from 3.00 m, including zone up to 7.50 g/t Au.

14 vein

Two thousand twenty-five drilling delineated a mineralized zone approximately 200 m by 20 m, trending northwest-southeast and dipping gently to the southwest, with typical grades of 0.4 to 0.6 g/t Au. Drilling has now defined both the northwest and southwest limits of the vein. Selected highlights include:

• QCM-25-018: 25.00 m at 0.632 g/t Au from 91.00 m;
• QCM-25-019: 33.84 m at 0.412 g/t Au from 49.16 m;
• QCM-25-025: 22.35 m at 0.661 g/t Au from 207.00 m.

A stepout hole 100 m north of the 14 vein, QCM-25-022, returned 11.00 m at 0.975 g/t Au from 25.00 m (including 7.00 m at 1.347 g/t Au), identifying a new target warranting follow-up as a potential parallel mineralized structure. A 500 m stepout hole to the northwest, QCM-25-030, intersected visible gold in quartz veining at 104 m and helped define the broader target area.

Metallurgy and quality control

Preliminary cyanide leach (bottleroll) testing on eight main zone samples returned greater than 90 per cent gold recovery within 24 hours. A comparison of 1,064 paired fire assay and photon assay results from four drill holes showed no systematic bias between the two methods.

Upcoming activities:

• Assay results from the 2026 phase 1 sampling program are anticipated in late August, 2026;
• Additional soil sampling and follow-up fieldwork are planned for September, 2026;
• A Kestrel management site visit is planned for the third quarter of 2026;
• Work will continue towards refining the QCM geological model, including primary and secondary fault structures.

Note from management

Gordon Aldcorn, president and chief executive officer of Kestrel, states: "Over the next 30 days, our management team will be conducting site visits to our existing QCM and KSD properties to support current technical assessment of ongoing programs. We are actively evaluating a number of prospective new projects to generate growth for the corporation, including opportunities in Western Canada and South America." Kestrel is pleased to introduce a new, updated website with interactive models for reference. Kestrel encourages shareholders and interested parties to visit the company's website.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Duncan McBean, PGeo, a qualified person as defined under National Instrument 43-101 and a director of Kestrel Gold Inc.

About Kestrel Gold Inc.

Kestrel Gold is an exploration company headquartered in Calgary, Alta., focused on the acquisition, exploration and evaluation of mineral properties in the Canadian Cordillera. Kestrel holds a 100-per-cent interest in the QCM property (subject to a 2-per-cent net smelter return (NSR) royalty), an orogenic gold target in the Manson-Germanson placer district of British Columbia, where Centerra Gold is advancing an earn-in option to acquire up to a 75-per-cent interest. Kestrel also holds a 100-per-cent interest in the KSD property (subject to a 2.5-per-cent NSR royalty), an orogenic gold target in the Tintina gold belt, Yukon. Kestrel is listed on the TSX Venture Exchange under the symbol KGC.

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