Mr. Mark Trevisiol reports

MCFARLANE LAKE ANNOUNCES C$6.2 MILLION IN WARRANT EXERCISES

McFarlane Lake Mining Ltd. has received exercise instructions from holders of an aggregate of 41,507,200 common share purchase warrants at an exercise price of 15 cents per warrant, which are expected to result in aggregate exercise funds of $6,226,080. Upon completion of the exercise process and receipt of the applicable exercise funds, the company expects to issue an aggregate of 41,507,200 common shares in respect of the exercised warrants.

The warrants were originally issued in connection with the company's previously announced private placement of debenture units that closed on Sept. 29, 2025, pursuant to which the company issued 15,000 debenture units composed, in the aggregate, of $15-million (U.S.) principal amount of senior secured debentures and 48 million warrants. The exercised warrants represent approximately 86 per cent of the warrants originally issued under the debenture offering. Each original holder of warrants determined, on a voluntary basis, whether to exercise its own warrants, continue to hold them or to sell them, and no original holder of warrants was required to exercise, sell or otherwise dispose of any of its warrants. Certain of the exercised warrants were exercised by the original holders thereof while others were exercised by independent third party investors, which had acquired such warrants from original holders prior to exercise. While the company was aware that such acquisitions had occurred, it was not a party to, and did not participate in, arrange or otherwise influence those acquisitions, which were privately negotiated among the original holders and the independent third party investors. Following these exercises, an aggregate of 6,492,800 warrants are expected to remain outstanding and unexercised, each of which is exercisable at 15 cents and expires on Sept. 29, 2028.

The company intends to apply the funds received from the exercise of warrants toward a pro rata redemption of debentures held by the holders of debentures who participated in the exercise process, which redemption will be subject to the approval of debentureholders holding a majority of the principal amount of the debentures. The company has engaged in discussions with the lead lenders, which hold sufficient principal amount of debentures to approve such pro rata redemption and, accordingly, expects that the required debentureholder approval will be obtained. Participating debentureholders are expected to receive repayment of the principal amount of their debentures, on a pro rata basis, together with all interest that would otherwise have accrued through the debentures' scheduled maturity date of Oct. 26, 2026. To the knowledge of the company, no insiders or related parties of the company participated in the exercise process.

Following completion of the proposed repayments, the company further intends to apply the $6.75-million private placement (announced on June 5, 2026) against the debentures such that the remaining principal amount outstanding under the debentures is expected to be approximately $1,711,872 (U.S.). Further details regarding the repayment of the debentures will be provided in a subsequent news release. Debentures held by debentureholders which did not participate in the exercise process are expected to remain outstanding and be repaid in accordance with their existing terms, including their scheduled maturity date of Oct. 26, 2026.

Mark Trevisiol, chief executive officer, president and director of the company, commented: "The exercise of these warrants provides the company with more than $6-million of additional funds and materially improves its balance sheet through the reduction of outstanding indebtedness. For many investors, the resolution of the company's debt repayment has been a key issue preventing them from fully embracing McFarlane's story. We believe that the clarity on the pathway to debt repayment announced today, together with the company's enhanced financial position, will support the execution of its exploration and development objectives going forward."

To the extent that any debentures remain outstanding at maturity and are held by insiders and/or related parties of the company, the company may, but is under no obligation to, explore potential alternatives with respect to those debentures at that time, which could include a possible extension or refinancing of the amounts owing. Any such alternatives would be subject to compliance with all applicable regulatory requirements, including the policies of the Canadian Securities Exchange. There can be no assurance that any such arrangement will be pursued or completed.

The shares issuable on exercise of the warrants are not subject to any statutory hold period in Canada.

The issuance of the shares pursuant to the warrant exercises remains subject to receipt of all required regulatory approvals, including the approval of the Canadian Securities Exchange, where applicable.

About McFarlane Lake Mining Ltd.

McFarlane Lake is a Canadian gold exploration company focused on advancing its flagship Juby gold project, located near Gowganda, Ont., within the established Abitibi greenstone belt. The Juby gold project hosts a current (effective Sept. 29, 2025) National Instrument 43-101-compliant mineral resource estimate of 1.01 million ounces of gold in the indicated category at an average grade of 0.98 gram per tonne gold (31.74 million tonnes) and an additional 3.17 million ounces of gold in the inferred category at an average grade of 0.89 g/t gold (109.48 million tonnes). The estimate was calculated using a long-term gold price of $2,500 (U.S.) per ounce, applying cut-off grades of 0.25 g/t gold for open-pit and 1.85 g/t gold for underground resources.

A sensitivity analysis completed at a higher gold price of $3,750 (U.S.) per ounce resulted in an indicated mineral resource of 1.20 million ounces grading 0.94 g/t gold (39.51 million tonnes) and an inferred mineral resource of 4.23 million ounces grading 0.85 g/t gold (154.50 million tonnes) applying cut-off grades of 0.25 g/t gold for open-pit and 1.15 g/t gold for underground resources.

The independent MRE was prepared by BBA E&C Inc. in accordance with National Instrument 43-101 (Standards of Disclosure for Mineral Projects). The full technical report supporting the resource estimate was filed on SEDAR+ on Nov. 21, 2025, and is also available on the company's website.

McFarlane Lake is actively executing an exploration drilling program and additional technical studies at the Juby project to further evaluate and advance this large-scale gold system.

In addition to Juby, McFarlane Lake holds a portfolio of 100-per-cent-owned gold assets across Ontario, including the past-producing McMillan gold mine and the Mongowin properties located approximately 70 kilometres west of Sudbury and the Michaud/Munro properties located 115 km east of Timmins. McFarlane Lake is a reporting issuer in Ontario, British Columbia and Alberta.

Qualified person

The scientific and technical information disclosed in this news release was reviewed and approved by Bob Kusins, PGeo, a consultant to the company, a qualified person as defined under National Instrument 43-101 (Standards of Disclosure for Mineral Projects). The technical information was also reviewed by Mr. Trevisiol, PEng, an officer of McFarlane Lake, a qualified person under NI 43-101.

Adviser

Wildeboer Dellelce LLP acted as legal counsel for McFarlane Lake.

We seek Safe Harbor.