Mr. Vern Rampton reports

MAYO LAKE TERMINATES PLANS FOR SHARE CONSOLIDATION AND LIFE OFFERING

Mayo Lake Minerals Inc.'s board of directors has terminated the company's previously announced listed issuer financing exemption (LIFE) offering and the concurrent one-for-three consolidation of its common shares, which had been scheduled to close on or about Aug. 28, 2026. The cancelled offering contemplated the issuance of common share (CS) units at eight cents per CS unit and flow-through (FT) units at 10.5 cents per FT unit on a postconsolidation basis.

After reviewing recent exploration developments in the Tombstone gold belt, the company's mineral interests, prevailing gold prices and the practical timing of the proposed 2026 exploration program, the board concluded that proceeding with the financing and consolidation on the previously announced terms would not be in the best interests of the company or its existing shareholders.

Banyan's Nitra results provide regional geological context

On July 28, Banyan reported 1.62 grams per tonne (g/t) gold over 5.0 metres, including 17.80 g/t over 0.4 metre, from the first reported drill hole at its Roaring Fork zone, together with dense quartz veining, visible gold and bismuth sulphosalts. Banyan also reported multiple occurrences of visible gold at its nearby Seattle Creek zone. On Aug. 25, Banyan reported a new high-grade gold and silver mineralized system within the first 95 metres assayed from a longer hole at its Seattle Creek zone. Multiple occurrences of visible gold, together with associated bismuth, sulphosalts and arsenopyrite, were noted in the core. Additional visible gold was identified in a second hole at the Roaring Fork zone. The information disclosed from the Roaring Fork and Seattle Creek zones is not necessarily indicative of the mineralization on the properties within the Anderson gold trend.

At this stage of development, there can be no assurance that Mayo will produce drilling results similar to those reported by Banyan. Mayo considers several exploration indicators reported by Banyan at Nitra, including structurally controlled gold-in-soil anomalies, favourable magnetic and geophysical signatures, quartz veining, pathfinder minerals and a history of placer gold, to be relevant to its exploration model because similar indicators are present at prospects within Mayo's 48-square-kilometre Anderson gold trend.

The board believes this regional exploration activity supports the rationale for drilling Mayo's proposed targets and provides additional context for its consideration of the previously announced financing terms. The board concluded that completing a one-for-three consolidation followed by the issuance of CS units at eight cents and FT units at 10.5 cents on a postconsolidation basis, as compared with recent trading values of Mayo, would result in excessive dilution to existing shareholders.

Dr. Vern Rampton, PEng, president and chief executive officer of Mayo, commented: "Banyan's recent results at Nitra provide regional geological context for the exploration methods and indicators Mayo has used to identify its Anderson gold trend targets. Although there can be no assurance that Mayo will obtain similar drill results, the comparison supports systematic drill testing of Dawn Gulch, Andy-Owl, Peak and other targets. The board has therefore decided not to proceed with the financing and consolidation on the previously announced terms."

Mayo Lake's 2-per-cent net smelter return (NSR) royalty on Banyan Gold's Trail-Minto property represents a significant asset.

In December, 2025, Mayo sold its Trail-Minto property to Banyan for $1-million in cash while retaining a 2-per-cent NSR royalty. Banyan has the right to reduce the royalty from 2 per cent to 1 per cent by paying Mayo an additional $1-million. The company cautions investors that gold prices remain volatile and may also decline.

No independent valuation of the NSR has been completed and Trail-Minto does not presently contain a mineral resource. The royalty will generate revenue only if a mineral deposit is discovered, developed and placed into production. Any future proceeds will depend on exploration success, the delineation and economic viability of a mineral deposit, future commodity prices, development and production decisions, and other factors beyond Mayo's control. The board is therefore considering a variety of alternatives in which to monetize all or a portion of the NSR. Any transaction would be evaluated in light of the royalty's long-term value and the best interests of the company and its shareholders.

Gregory LeBlanc, chair of Mayo's audit committee, stated: "The board has an obligation to consider all of Mayo's assets and the potential dilution to existing shareholders before approving a financing. Cancelling the financing and consolidation preserves the company's flexibility to reassess its capital requirements, financing alternatives and exploration plans as additional information becomes available."

Tombstone gold belt exploration activity

Recent exploration and development progress reported by Snowline Gold, Sitka Gold and Banyan Gold has brought increased investor and industry attention to the Tombstone gold belt and its reduced intrusion-related gold systems.

Mayo's 86-square-kilometre Anderson-Davidson property, including the 48-square-kilometre Anderson gold trend, is located within this regional geological setting. The property contains numerous gold-in-soil anomalies, a history of placer-gold activity, interpreted structures and multiple proposed drill targets.

The board considers that regional exploration developments, the timing of Mayo's proposed work program and changes in prevailing gold prices warrant reconsideration of the timing and terms of any future financing.

Mandated strategic review

The company is assessing strategic alternatives, including asset optimization and financing structures intended to reduce dilution. Additional developments will be announced as required.

Qualified person

The technical and scientific information contained in this news release has been reviewed and approved by Dr. Vern Rampton, PEng, a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Mayo Lake Minerals Inc.

Mayo is engaged in the exploration and development of three mineral properties covering 145.6 square kilometres in the Mayo-Keno area of Yukon's Mayo mining district. All properties lie within the traditional territory of the First Nation of Na-Cho Nyak Dun. The Mayo-Keno area lies within the Tombstone gold belt and the Keno Hill silver district, which host the company's active exploration and development programs.

Mayo's 86-square-kilometre Anderson-Davidson property contains the 48-square-kilometre Anderson gold trend, where more than 10,000 metres of linear gold-in-soil anomalies have been outlined. Mayo interprets these anomalies as prospective surface indicators of subsurface gold mineralization, including possible intrusion-related veining.

Mayo's 44-square-kilometre Carlin-Roop silver property exhibits geological and geochemical evidence prospective for Keno Hill-style high-grade silver mineralization. Its Carlin West zone has a footprint and certain geological characteristics that Mayo considers comparable with those of the historic Elsa mine. Comparisons with nearby or historical deposits are provided solely for geological context and do not imply that similar mineralization will be discovered.

At Mayo's 15-square-kilometre Edmonton property, a broad magnetic low may indicate an alteration halo above a buried intrusion. Anomalous gold, silver and base metal geochemistry, together with positive SGH responses, define a multielement exploration target.

We seek Safe Harbor.