Mr. Christian Kargl-Simard reports

BLUE MOON METALS ANNOUNCES START OF MOBILIZATION FOR NUSSIR UNDERGROUND DEVELOPMENT, FOLLOW ON EQUITY INVESTMENT OF C$1.13M FROM MINING CONTRACTOR AND ENGAGEMENT OF MARKET MAKER

Blue Moon Metals Inc. has mobilized Leonhard Nilsen & Sonner AS (LNS) in preparation for underground development of the exploration decline and confirmation of underground mining parameters at its Nussir copper-gold-silver project in northern Norway. LNS is a highly skilled world-class tunnelling and mining contractor with extensive experience working in northern Norway and other jurisdictions. The work to be completed over the next year is expected to provide key inputs for engineering studies that the company anticipates will lead to a final investment decision for the entire project in 2026, including mine, process plant and tailings infrastructure.

Follow-on equity investment

In addition to its initial $4.2-million subscription that closed on Dec. 19, 2024, LNS agreed to subscribe for an additional $2.2-million of Blue Moon common shares upon the occurrence of two milestones, the first being the start of LNS underground mobilization at the project and the second being the date that is 10 months thereafter. With the company achieving the first milestone, LNS subscribed for 376,833 common shares of Blue Moon at a price of $3 per share for aggregate gross proceeds of $1.13-million.

The financing was approved by the TSX Venture Exchange and closed on May 8, 2025. No finders' fees were paid in connection with the financing, and the common shares issued pursuant to the financing will be subject to a statutory four-month-and-one-day hold period from the date of issuance. The proceeds from the financing will be used for underground development at the project.

Engagement of Red Cloud Securities Inc.

Blue Moon has retained Red Cloud Securities Inc. to provide market stabilization and liquidity services in accordance with policies of the TSX-V. Under the agreement, Red Cloud will trade the securities of the company on the TSX-V, adhering to regulatory exchange policies, to maintain market stability and liquidity for the company's common shares.

In consideration for the services, the company will pay Red Cloud a monthly fee of $7,000 for a minimum term of three months. The fee for the first month shall be paid in advance and thereafter on a monthly basis. The agreement has a one-year term and may be terminated by either party upon 30 days of written notice, after the initial minimum term of three months. Blue Moon and Red Cloud are unrelated and unaffiliated entities, and, as at the time of the agreement, Red Cloud does not hold any interest, directly or indirectly, in the securities of Blue Moon. Red Cloud will not receive shares or options as compensation and the capital used for market making will be provided by Red Cloud.

Red Cloud Securities is a Toronto-based investment dealer and a member of the Canadian Investment Regulatory Organization (CIRO), focused on providing a full range of brokerage services to all investor types focused in the junior resource sector. Its services include investment banking, research, institutional and retail trading, institutional sales, and retail investment advisory services.

Stock option grant

The company has granted a total of 24,000 incentive stock options under the company's share compensation plan to a consultant of the company. The stock options have an exercise price of $3 per stock option and are exercisable for a period of five years from the date of grant. The stock options vest over three years with a third vesting every year and are governed by the terms and conditions of the company's stock option plan.

Qualified person

The technical and scientific information of this news release has been reviewed and approved by Dustin Small, PEng, a non-independent qualified person, as defined by National Instrument 43-101.

About Blue Moon Metals Inc.

Blue Moon is advancing three brownfield polymetallic projects, including the Nussir copper-gold-silver project in Norway, the Blue Moon zinc-gold-silver-copper project in the United States and the NSG copper-zinc-gold-silver project in Norway. All three projects are well located with existing local infrastructure, including roads, power and historical infrastructure. Zinc and copper are currently on the U.S. Geological Survey and European Union list of metals critical to the global economy and national security.

We seek Safe Harbor.