Mr. Greg Davis reports

SUN PEAK METALS CORP. COMMENCES 2026 EXPLORATION PROGRAM IN THE KINGDOM OF SAUDI ARABIA

Sun Peak Metals Corp. has provided an update on its 100-per-cent-owned copper and gold exploration projects in the Kingdom of Saudi Arabia (KSA) and has started field-based exploration activities across multiple priority projects. The company also announces new appointments to the Sun Peak board of directors.

As announced on Dec. 18, 2025, Sun Peak completed the acquisition of Saudi Discovery Company (SDC), a private exploration company active in Saudi Arabia since 2023, which assembled a substantial portfolio of volcanogenic massive sulphide (VMS) base metal and gold projects. Since closing the transaction and the associated $6.7-million financing on Nov. 28, 2025, Sun Peak's technical team has compiled, validated and interpreted historical data generated by SDC and prior operators, enabling the rapid advancement of exploration activities.

"Sun Peak is applying its technical and operational expertise in the Arabian-Nubian Shield to highly prospective VMS and gold systems in Saudi Arabia, with the goal of making new discoveries that support the Kingdom of Saudi Arabia's Vision 2030 strategy," said Greg Davis, president and chief executive officer of Sun Peak Metals. "Early data compilation is highly encouraging, with strong copper-gold VMS signatures identified across multiple projects. These results are comparable to indicators observed prior to the discovery of major VMS deposits such as Bisha and Emba Derho. We are confident that applying the same systematic approach to our high-quality Saudi portfolio will lead to similar success."

Data compilation has identified strong gold, silver and copper values from historical and recent geological sampling, supported by coincident geophysical anomalies. These results have underpinned the launch of systematic 2026 exploration programs across the company's priority project areas.

2026 exploration program overview

Field exploration programs on the Safra, Al Miyah and Halahila projects are under way. Current work, designed to advance the most prospective VMS trends and determine drill targets for the company's initial drill program, includes:

• Detailed geological mapping and geochemical sampling;
• Ground time-domain electromagnetic (TDEM) surveys;
• Drone-borne magnetics, induced polarization (IP), and airborne electromagnetic, magnetic and radiometric surveys, planned to commence in Q1 2026.

Results from these programs will be integrated to prioritize initial drill targets, with drilling anticipated to commence later in 2026.

Summary of previous SDC fieldwork highlights

Safra project

• A total of 85 surface grab samples returned high-grade precious and base metal values, including assays up to 3.34 grams per tonne Au (gold), 6.72 per cent Cu (copper), 864 g/t Ag (silver), 19.05 per cent Zn (zinc) and 9.89 per cent Pb (lead).
• Trenching returned 22.5 m grading 0.9 g/t Au, 35.6 g/t Ag, 0.20 per cent Cu, 1.83 per cent Pb and 1.21 per cent Zn, including 1.5 m grading 8.23 g/t Au, 118 g/t Ag, 0.32 per cent Cu, 11.7 per cent Pb and 1.62 per cent Zn.
• Detailed gravity surveys outlined strong gravity anomalies coincident with VMS-style mineralization and alteration at Safra Main and Safra East.
• Approximately 600 ground TDEM stations were completed, with results currently under interpretation.

Al Miyah project

• Fifty surface grab samples collected from three target areas returned strong precious and base metal results.
• Samples from Al Miyah Main returned assays up to 4.53 g/t Au, 3.72 per cent Cu and 42.2 g/t Ag.
• At the Hishashat target, select samples returned values up to 2.33 g/t Au, 3.79 per cent Cu, 23.1 g/t Ag and 8.21 per cent Zn.
• Coincident gravity highs were identified adjacent to VMS gossans and ancient workings at Hishashat.
• Ground TDEM surveys are currently under way at Hishashat.

Halahila project

• Eighty three surface grab samples collected from two target areas returned encouraging results, including values up to 17.0 g/t Au, 1.02 per cent Cu, 80.3 g/t Ag, 2.19 per cent Zn and 2.5 per cent Pb (lead).
• Gravity surveys outlined a pronounced north-south-trending gravity gradient associated with a greater than 10-kilomere VMS trend.

Sun Peak board of directors appointments

Sun Peak is pleased to announce the appointment of Hisham Attar and Joshua Lai to its board of directors, effective upon completion of the company's previously announced transaction with Saudi Discovery Company (SDC) on Dec. 18, 2025.

Mr. Attar brings more than 15 years of experience in finance and investment banking, including as a senior director at Saudi Arabia's Public Investment Fund. He has also served in senior executive leadership roles, including as an executive committee member at SAMI and a board member of TAQA.

Mr. Lai is currently head of legal at Beacon Events Group, a global mining and resource events company. Based in Riyadh, he has extensive experience advising mining companies on securing exploration licences and executing on projects across the Arabian-Nubian Shield.

These appointments strengthen Sun Peak's board with additional capital markets, investment, legal, regulatory and regional expertise as the company advances its exploration strategy in the Kingdom of Saudi Arabia. The company previously announced the appointment of Jim Paterson to the board in connection with the SDC transaction.

David Awram, Hayley Thomasen, Doris Meyer and Greg Davis (chief executive officer) will remain on the board of directors.

In connection with these appointments, Steve DeJong has stepped down from the board. The company sincerely thanks Mr. DeJong for his contributions, guidance and service, and the company wishes him continued success in his future endeavours.

Saudi Arabian projects overview

Sun Peak's 100-per-cent-owned projects in Saudi Arabia are comprising six exploration licences totalling approximately 438 square kilometres within the highly prospective volcanic massive sulphide (VMS) trend of the Arabian-Nubian Shield in Saudi Arabia.

The company is also awaiting the finalization of the Saudi Arabian Ministry of Industry and Minerals (MIM) Round 9 Auction, which is expected to add approximately 700 square km along established VMS trends, as well as two additional applications currently under review.

Safra project (93 square km)

The Safra project is located within the Nuqrah VMS belt at the western margin of the Afif terrane, a region hosting numerous ancient workings and active gold mines. Two documented VMS occurrences, Safra Main and Safra East, are situated approximately 1.5 km apart. Modern exploration completed by SDC, including gravity surveys, trenching and surface sampling, has outlined multiple subparallel VMS zones with strong geophysical and geochemical signatures.

Al Miyah project (234 square km)

The Al Miyah project lies within the Muhadad VMS belt of the Asir terrane, a prolific VMS and gold district that hosts the Al Hajar and Al Masane mines. SDC completed detailed gravity surveys and surface sampling that confirmed strong mineralization associated with VMS gossans and historical workings at both the Hishashat and Al Miyah Main prospects.

Halahila project (35 square km)

The Halahila project is located in the Kutam-Al Masane VMS belt of the southern Asir terrane, approximately 45 km south of the Al Masane VMS mine. Historical drilling and recent gravity surveys confirm a well-developed VMS system with extensive gossan development over an approximate 10 km strike length.

Qualified person

Arron Albano, PGeo, is the qualified person overseeing Sun Peak's exploration projects in Saudi Arabia, and has reviewed and approved this press release.

Quality assurance and quality control protocols for rock samples disclosed herein follow industry standard practices. The rock samples were delivered directly to labs ALS Global Lab and Alamri Labs in Jeddah, KSA, for analysis.

About Sun Peak Metals Corp.

Sun Peak holds district-scale VMS base metal and gold projects in the Kingdom of Saudi Arabia and Ethiopia. In Saudi Arabia, the company holds 440 square km of highly prospective ground across six licenses, with additional applications covering approximately 700 square km along proven VMS trends. The company's Shire project in Ethiopia covers six exploration licences totalling approximately 1,450 square kilometres within the highly prospective Arabian-Nubian Shield, the same geological environment as the Bisha mine and the Asmara projects in Eritrea. Two licences (Meli and Terer) held in joint venture with Ezana Mining, a private Ethiopian company, while the remaining four are 100 per cent owned by Sun Peak.

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