Mr. Greg Isenor reports

KO GOLD ANNOUNCES INCREASE TO NON-BROKERED PRIVATE PLACEMENT

Further to the news release dated Dec. 15, 2025, KO Gold Inc. has increased the size of its previously announced non-brokered private placement due to strong investor demand.

The private placement was previously composed of up to 12 million units at a price of 15 cents per unit. The company has increased the maximum number of units issuable at a price of 15 cents per unit to up to 14,914,866 units for aggregate gross proceeds of up to $2,237,230.

Each such unit will consist of one common share of the company and one transferable common share purchase warrant, with each warrant entitling the holder to acquire one additional share at an exercise price of 25 cents for a period of three years from the date of issuance.

The company expects to complete a first closing of the private placement on Jan. 14, 2026, for aggregate gross proceeds of $1,980,475.35, representing the issuance of 13,203,169 units.

In addition, the company expects to complete a further closing of the private placement for aggregate gross proceeds of approximately up to $458,555, consisting of the issuance of:

• Up to 1,711,697 units at a price of 15 cents per unit; and
• Up to 1,034,872 units at a price of 19.5 cents per unit.

Each unit issued at a price of 15 cents per unit will consist of one share and one warrant, with each such warrant entitling the holder to acquire one additional share at an exercise price of 25 cents for a period of three years from the date of issuance.

Each unit issued at a price of 19.5 cents per unit will consist of one share and one warrant, with each such warrant entitling the holder to acquire one additional share at an exercise price of 26 cents for a period of three years from the date of issuance.

All securities to be issued in connection with the initial tranche will be subject to a statutory hold period expiring on May 15, 2026, in accordance with applicable Canadian securities laws.

Completion of the second tranche of the private placement is subject to shareholder approval pursuant to the policies of the Canadian Securities Exchange as the issuance of securities under the private placement would result in the issuance of securities in excess of 100 per cent of the company's issued and outstanding common shares on a fully diluted basis.

The company intends to obtain the required shareholder approval by written consent of shareholders holding a majority of the outstanding common shares of the company, as permitted under the policies of the Canadian Securities Exchange.

Upon receipt of such shareholder approval and all required regulatory approvals, the company expects to close the second tranche of the private placement. The private placement is for aggregate gross proceeds of up to approximately $2,439,030, assuming completion of all tranches.

The company intends to use the net proceeds from the private placement for general working capital purposes and to finance continuing exploration and drilling programs in the Otago gold district, New Zealand.

In connection with the initial tranche, the company expects to pay finders' fees of $28,735 in cash and expects to issue 191,567 finders' warrants to certain qualified parties upon closing. Each finder's warrant will be exercisable to acquire one common share at an exercise price of 25 cents for a period of three years from the date of issuance, being on the same terms as the warrants issued in connection with the initial tranche of the private placement.

About KO Gold Inc.

KO Gold is a Canadian junior exploration company listed on the Canadian Securities Exchange under KOG. The company's strategy is to acquire and explore highly prospective gold properties within the Otago gold district in New Zealand. KO Gold currently has four 100-per-cent-owned prospecting and exploration permits within the Otago gold district for a combined land package of 400 square kilometres (including the Carrick Range exploration permit application). The company's Smylers, Hyde and Glenpark EPs are located adjacent to Oceanagold's Macraes gold mine, and the Carrick EP hosts the historic Carrick goldfield, which holds promise as a significant gold deposit near Santana Minerals' Bendigo-Ophir gold project. The company also has a net smelter royalty on three additional permits: Garibaldi, Raggedy Range and Rough Ridge South totalling 243 square kilometres. KO Gold has spent over $3-million in exploration and drilling on its permits in the Otago gold district over the past five years, including reverse circulation and diamond drilling on its Smylers EP.

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