Mr. Carl Ginn reports

LUX METALS CLOSES ACQUISITION OF HIGH-GRADE GOLD LA GRANDE PROJECT IN QUEBEC AND FINAL TRANCHE OF $4 MILLION PRIVATE PLACEMENT

Further to Lux Metals Corp.'s news release dated Nov. 11, 2025, it has exercised its option to acquire a 100-per-cent interest in the La Grande project, a high-grade gold project located in the James Bay region of Quebec. The company acquired the project pursuant to an option agreement between the company and OVI Mining Corp. (formerly La Pulga Mining Corp.) (OVI) dated Nov. 10, 2025.

In consideration for the transaction, the company has issued OVI 15,125,477 common shares at a deemed price of 20 cents per option share.

The transaction remains subject to final approval of the TSX Venture Exchange. The option shares are subject to a four-month-and-one-day statutory hold period, in accordance with applicable securities laws.

Further information regarding the project is disclosed in the company's news release dated Nov. 11, 2025.

Final tranche private placement closing

The company also announces that it has closed the second and final tranche of its previously announced $4-million non-brokered private placement of units, through the issuance of 1.25 million units at a price of 20 cents per unit, for total gross proceeds of $250,000. Together with the 18.75 million units issued on Jan. 26, 2026, at 20 cents per unit, the company raised gross proceeds of $4-million through the issuance of 20 million units. Each unit consists of one common share of the company and one transferrable share purchase warrant, each warrant exercisable into one additional share at a price of 40 cents per share for two years from issuance.

The gross proceeds from the placement are anticipated to be used for exploration costs and general working capital.

No finders' fees were paid in connection with the second tranche. All securities issued under the second tranche are subject to a four-month-and-one-day statutory hold period, in accordance with applicable securities laws.

Debt settlement

The company also announces that it has completed its previously announced debt settlement transactions with certain non-arm's-length creditors of the company, pursuant to which the company has issued to the creditors an aggregate of 535,000 shares at an issue price of 20 cents per debt share in full and final settlement of accrued and outstanding indebtedness in the aggregate amount of $107,000.

The debt shares are subject to a four-month-and-one-day statutory hold period, in accordance with applicable securities laws. The debt settlement remains subject to final approval of the TSX-V.

As the creditors are corporate entities owned and controlled by officers and directors of the company, the debt settlement was considered to be a related party transaction as defined under Multilateral Instrument 61-101. Notwithstanding, the debt settlement was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the debt shares nor the consideration to be received for those securities, exceeded $2.5-million. The company did not file a material change report more than 21 days before the expected closing of the debt settlement, as the details of the debt settlement were not settled and approved by the TSX-V until shortly prior to the closing thereof and the company wished to close on an expedited basis for sound business reasons.

We seek Safe Harbor.