Mr. Wendell Zerb reports

RED CANYON PROVIDES EXPLORATION UPDATE

Red Canyon Resources Ltd. has provided an overview outlining summary results on current activities and exploration plans for the remainder of 2024. The company is focused on impactful, value-add exploration to make discoveries of copper and copper-gold deposits in established mineral belts in North America.

Company highlights:

• Red Canyon controls a portfolio of seven 100-per-cent-owned, internally generated copper and copper-gold projects.
• The company is progressing on final set-up for its inaugural drill program at its 100-per-cent-owned Kendal copper project in west-central British Columbia. All required permits are in place, drill pad preparation is under way and the drill is set to mobilize on Sept. 1, 2024. The planned program will consist of four to six drill holes totalling up to 2,500 metres. Drilling will target an interpreted copper porphyry system, represented by significant altered and mineralized volcanic and porphyritic rocks exposed over 2.5 by 1.5 kilometres. Recent lithogeochemical studies suggest that the erosional level of the porphyry system alteration in Kendal Creek could be directly above and in close proximity to a modeled zone of copper mineralization. Kendal has never been previously drill tested.
• Plans are under way to conduct expanded IP and gravity geophysical surveys at the company's 100-per-cent-owned Scraper Springs project in Northern Nevada. Scraper Springs hosts a four-by-four-kilometre alteration footprint comparable in scale with some of the world's largest copper deposits. The company plans to expand on a deep-penetrating IP geophysical line previously completed by Red Canyon which identified a large chargeable target at depth. A series of lines are planned to better define the extent of this feature and aid in drill targeting. In addition, the company has commissioned Fathom Geophysics to complete a 3-D magnetic inversion model at Scraper Springs prior to the expanded IP program.
• In Q2, Red Canyon completed four first-pass diamond drill holes at its Peak copper-gold project in British Columbia, testing two main areas of its Peak Central copper-gold target. The drilling specifically tested zones with magnetic features, coincident IP and elevated copper-in-soil geochemistry interpreted to represent a covered Alkalic copper gold porphyry system. Drilling identified an altered Alkalic megacrystic porphyry dike with quartz veining and minor sulphides but did not identify a causative intrusive body linked to surface mineralization. The area potential remains open to discovery.

Wendell Zerb, the chairman and chief executive officer of the company, states: "Red Canyon continues to advance of its portfolio of 100-per-cent-owned copper and copper/gold projects. We are very excited that our high-profile Kendal project is weeks away from the first ever drilling. Cumulative work suggests Kendal may represent a large, mineralized porphyry system. Testing big targets is part of our business plan and we believe Kendal is a great leveraged target. While drilling at our Peak project did not yet identify a source of the surface mineralization, potential for discovery remains open at Peak Central and the Peak North area remains untested. Finally, expanded geophysics at Scraper Springs this fall is expected to improve future drill targeting on this high-profile Nevada project. Drilling is expected to commence as early as Q2 2025."

Kendal project drill plan

Red Canyon has initiated a diamond drill program consisting of four to six drill holes totalling up to 2,500 metres. Kendal has never been previously drill tested. Drilling will target an interpreted copper porphyry system, represented by significant altered and mineralized volcanic and porphyritic rocks exposed over 2.5 by 1.5 km. Recent lithogeochemical studies suggest the erosional level of the porphyry system at the base of Kendal Creek could potentially be directly above and in close proximity to the modelled zone of copper mineralization. All required permits are in place, drill pad preparation is under way and drill contractor Diamondhead Drilling is set to mobilize a drill rig on Sept. 1, 2024.

Kendal comprises five 100-per-cent-owned mineral claims totalling 2,738 hectares located in west-central British Columbia approximately 25 km northeast of the city of Terrace, a regional infrastructure hub with a well-serviced airport. Infrastructure is excellent with four intersecting highways, hydroelectric power and rail corridors, and port facilities approximately 120 km to the west at Prince Rupert. The project has direct road access, only 3.5 km from Highway 16.

In the fourth quarter of 2023, a lithogeochemical vectoring study including approximately 200 specimens of variably altered and randomly mineralized whole rocks were collected within the area of interest. Interpretation of Kendal data suggests that the current level of erosion is potentially in close proximity to the most prospective potassic alteration zone, suggesting that the top of a copper porphyry system could be near surface.

The drill plan is set up at approximately 115 m above the base of Kendal Creek at multiple sites, to drill through the phyllic zone and test the system to depth below the base elevation of Kendal Creek. Drilling will concentrate on testing below exposed porphyrytic intrusions in Kendal Creek and within the interpreted magnetic destruction zone and gamma-ray radiometric response outlining very low thorium/potassium (Th/K) ratios identified previously. The company anticipates the program to run into late October.

Scraper Springs project expanded geophysics

Plans are under way to conduct expanded IP and gravity geophysical surveys at the company's 100-per-cent-owned Scraper Springs project in Northern Nevada. The company expects to expand on a deep-penetrating IP geophysical line previously completed by Red Canyon in 2022. A series of parallel lines and one cross-line are planned to better define the extent of a large, previously identified chargeable target. In addition, the company has commissioned Fathom Geophysics to complete a 3-D magnetic inversion model at Scraper Springs prior to the expanded IP and gravity program.

Scraper Springs is located in Northern Nevada approximately 125 km from the cities of Winnemucca and Elko. The project is 100 per cent owned, subject to a 2-per-cent net smelter return royalty and consists of 190 unpatented mining claims, spanning 1,589 hectares. Scraper Springs hosts a four by four km alteration footprint comparable in scope with some of the world's largest copper deposits.

Previous operators at Scraper Springs mostly targeted shallow, high-grade gold systems or Carlin-related gold systems. A reinterpretation of the alteration and geology at the project by Red Canyon and third party consultants suggests high-temperature, low-pH clays and Eocene-aged intrusions at Scraper Springs could be associated with a deeper, large-scale copper system. In 2022, Red Canyon completed a deep IP survey at the project, which outlined a significant, chargeable zone not previously drill tested. One historical drill hole located approximately 1.5 km east of this new chargeability target intersected strong propylitic alteration and ended in anomalous copper mineralization with values up to 0.17 per cent copper.

The company views Scraper Springs as an important, high-profile copper project with excellent discovery potential.

Peak First Pass drill program

In Q2 the company drilled four first pass diamond drill holes totalling 1,310 m at the company's Peak copper-gold project in central British Columbia. This initial program tested the main Peak Central target with three holes and the 6S target with one hole.

The project area has multiple copper-gold targets highlighted by magnetic features, coincident induced polarization (IP) anomalies and elevated copper geochemistry. Peak represents a 6,560-hectare, strategic land position situated in a copper-gold district with active large scale mining operations nearby and excellent infrastructure.

The company's main priority was to test Peak Central. A previous IP survey at Peak Central outlined a large chargeability zone and a deep resistive centre, west of outcropping copper bearing porphyritic rocks grading up to 2 per cent copper.

Drill holes at Peak Central intersected a series of mixed sediments including black graphitic shales, sandstones and polymictic conglomerates. The sedimentary package is intruded throughout by a series of porphyry dikes and the highly chargeable zone outlined by IP geophysics is likely due to graphitic sediments and zones with up to 5 per cent pyrite. In addition, a deep resistive centre targeted in RC-PG-02 is interpreted to be caused by quartz-rich sandstones, conglomerates and late porphyry dikes. Both the high chargeability and high resistivity anomalies targeted by drilling are not considered to be associated with an intrusive centre at Peak Central. The source of copper mineralization found on surface to the east of recent drilling by Red Canyon remains unknown. However, drill hole RC-PC-01 intersected an altered megacrystic alkaline porphyry dike that contains quartz veining and minor sulphides. This rock is encouraging in that the intense sericitic alteration and associated veining is typical of that associated with a possible mineralized porphyry system.

The company tested the 6S target north of Peak Central with one drill hole. Graphitic sediments with sulphides, predominately pyrite with trace chalcopyrite are interpreted to be the cause of the associated chargeability high at 6S. Elevated copper geochemistry surrounding the 6S area is possibly related minor chalcopyrite identified in the sediments. No further work is planned on the 6S target.

Other projects

The company has allowed its Cooper project claims in central British Columbia to lapse. Initial work at Cooper failed to replicate previous operators' sampling results and validate the geological interpretation.

The company has entered into a lease to purchase option on the Oxford copper-gold project in Nevada. Preliminary work programs are planned for 2024.

At its 100-per-cent-owned Keg project in Utah, the company plans to complete a rock and soil geochemistry program across a zone of pyritic volcaniclastic and Eocene-aged porphyritic rocks associated with a magnetic low. Previous grab samples in the area returned up to 300 parts per million copper.

About Red Canyon Resources Ltd.

Red Canyon Resources is a geoscience-driven, discovery-focused mineral exploration company focused on exploring North America's top copper jurisdictions. The company's core goal is to make impactful copper discoveries to benefit all stakeholders and aid in the clean energy transition. Red Canyon has a portfolio of 100-per-cent-owned copper and copper-gold porphyry exploration projects. The company's technical team consists of experienced geoscientists with diverse capital market, small cap and major mining company backgrounds, and a record of success.

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