Mr. Wendell Zerb reports

RED CANYON DRILLING CONFIRMS DISCOVERY OF SIGNIFICANT COPPER- MOLYBDENUM MINERAL SYSTEM AT ITS 100% OWNED KENDAL PROJECT

Red Canyon Resources Ltd. has now completed the inaugural diamond drill program on its 100-per-cent-owned Kendal project in west-central British Columbia. The company successfully drilled five diamond core holes, testing the northeastern area of the Kendal surface alteration system. All drill holes intersected significant porphyry-style alteration, multiple vein sets and variable visual copper and molybdenum (moly) mineralization throughout.

Company highlights:

• Five drill holes totalling 2,562 metres (m) have tested a portion of the upper 250 to 450 m of the Kendal system measured vertically from surface and over an area covering approximately 1.0 kilometre (km) by 0.50 km of a mapped 2.5 km by 1.5 km alteration footprint.
• Strong alteration is pervasive in all drill holes with multigenerational porphyry-related veining identified throughout. Alteration is predominately propylitic to inner propylitic with areas of sericite (QSP), sericite-chlorite plus or minus clay (SCC), and remanent potassic zones. Multigenerational veins, with copper and moly mineralized sets, suggest Kendal represents a large, mineralized copper-moly porphyry system.
• Assays received from the first drill hole (RCKD-24-001) at Kendal returned 0.10 per cent copper equivalent (CuEq) starting from surface to 601.7 m, including 123.0 m grading 0.16% CuEq.
• Drill intercepts are interpreted to represent zones of mineralization above or adjacent to an anticipated central higher-grade core within this mineralized calc-alkaline copper-moly porphyry system.

Wendell Zerb, the chairman and chief executive officer of the company, states: "This first-ever drill program at Kendal has not only confirmed a new copper-moly discovery, but it has also immensely expanded our confidence and understanding of the size and overall strength of the greater mineral system. Every drill hole, from top to bottom, is significantly altered with multiple vein sets representing a very robust mineral system. We are also confident this initial scout drill program has only 'scratched' a portion of the copper-moly system, in a small subset of the overall Kendal project area. Copper-moly porphyry mines worldwide are some of the largest, highest-value sources of metal, and it's especially rare for a small-cap mineral exploration company to discover and control 100 per cent of potentially a large copper-moly system, with importantly exceptional infrastructure."

Dr. Craig Hart, chief geoscientist of the company, states: "The extensive mineralized alteration footprint encountered with these first-ever drill holes at Kendal, indicates a porphyry system with a massive amount of fluid flow. The large alteration footprint and corresponding multigenerations of hydrothermal veins give us confidence about the scale of the system and the potential to target towards a high-grade core. This early drill program at Kendal was a great success in confirming a copper porphyry discovery and additional work is required to find the best of the Kendal system."

Kendal project

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, 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. The project area lies within the traditional territory of the Kitselas First Nation.

Kendal project drilling

Red Canyon has completed the first-ever diamond drill program at its 100-per-cent-owned Kendal project. The program consisted of five drill holes totalling 2,562 m. Drilling targeted the northeastern portion of the Kendal copper-moly porphyry system, represented by significant altered and mineralized andesitic volcanic and porphyritic intrusive rocks exposed over 2.5 km by 1.5 km. Drill holes have been sampled from top to bottom with initial assays received from drill hole RCKD-24-001. Assays from all remaining holes are pending and anticipated by late December, 2024, to early January, 2025.

The 2024 drilling program at Kendal project confirmed the discovery of a substantial mineralized porphyry system with an extensive alteration footprint spanning a minimum of 1.5 square km. Drilling consistently intersected a succession of highly altered and mineralized volcanics and multiple cross-cutting quartz diorite and microdiorite porphyry intrusions. Multiple generations of hydrothermal veins cut across the porphyry intrusions and volcanic host rocks. Based on the vein mineralogy and cross-cutting relationships, at least seven vein generations have been identified, including multiple sets that host chalcopyrite and moly mineralization.

The drilling was conducted from three drill locations at Kendal: one road accessible pad on the west side of Kendal Creek and two helicopter-supported pads on the east side of Kendal Creek. Collar locations were set up at approximately 90 m to 115 m above the base of Kendal Creek. Drill holes RCKD-24-001, RCKD-24-002 and RCKD-24-005 targeted areas below exposed porphyritic intrusions in Kendal Creek and within the interpreted magnetic destruction zone coincident with gamma-ray radiometric signature with very low thorium/potassium (Th/K) ratios. Drill holes RCKD-24-003 and RCKD-24-004 tested magnetic high and low features with coincident elevated copper and moly geochemistry. Both drill holes were collared at relatively low elevation to test the northeast portion of the 2.5 km by 1.5 km surface alteration footprint.

Drill hole RCKD-24-001 (DH001), azimuth 252 degrees, dip minus 60 degrees

DH001 tested the Kendal alteration system collared from fly-in drill pad 06 on the east side of Kendal Creek. Drilling immediately encountered interlayered, porphyritic andesite, medium-grained phaneritic andesitic flows and volcaniclastics of Early Jurassic Telkwa formation, cut by multiple diorite and microdiorite porphyry intrusions that are subsequently cut by intramineral quartz diorite and late-mineral feldspar porphyry dikes.

The porphyry intrusions and host andesitic volcanics have undergone intense propylitic (chlorite-epidote-carbonate-pyrite) alteration and silicification, which is overprinted by sericitic (QSP) and sericite-chlorite plus or minus clay (SCC) alteration at deeper levels. This alteration suite is interpreted to be within the shell of a mineralized copper-molybdenum calc-alkaline porphyry system.

Multigenerational porphyry-related veins are consistently intersected throughout the hole. Mineralization is associated with quartz veins and is consistently with approximately 3 per cent to 4 per cent pyrite, and less than 0.5 per cent chalcopyrite and less than 0.5 per cent molybdenum. Quartz-chlorite-magnetite-sulphide vein densities increase at depth in the drill hole and generations of quartz-chlorite-magnetite-sulphide, quartz-anhydrite-chlorite-sulphide and microveinlets of pyrite all indicated a higher temperature zone from 375 to 450 m with a slight increase in chalcopyrite mineralization.

Drill hole RCKD-24-002 (DH002), azimuth 285 degrees, dip minus 55 degrees

DH002 tested the Kendal alteration system collared from pad 6 on the east side of Kendal Creek. Like DH001, DH002 drilling consistently intersected a succession of highly altered and mineralized andesitic volcanics and multiple cross-cutting quartz diorite and microdiorite porphyry intrusions.

A systematic pattern of hydrothermal alteration, veining and copper-sulphide mineralization in DH002 builds on the significant footprint of the Kendal porphyry system. The company considers it noteworthy that the drill hole intersected multiple cross-cutting porphyry intrusions, including a possible causative intrusive at 365 m, responsible for the extensive more than 1.5 square km wide alteration footprint at Kendal. This intrusion is a distinct phase of equigranular microdiorite, emplaced as stock and dikes to the end of hole at 604.7 m. The alteration intensities, vein-stockwork mineralization, magnetic intensity and periodic silica flooding, as well as remnant potassic alteration, generally continued to increase with depth.

DH002 assays are pending.

Drill hole RCKD-24-003 (DH003), azimuth 172 degrees, dip minus 58 degrees

DH003 is a 500 m stepout to the northeast from DH001/002 designed to test a magnetic high/low interface adjacent to elevated copper and moly rock and soil geochemistry. This fly-in location, pad 9, is approximately 60 m lower elevation than pad 6, on the northeastern portion of the surface alteration footprint.

The drill hole intersected extensive andesitic volcanics characterized by strong propylitic alteration locally overprinted by intense silicification and hydrothermal magnetite. The andesite units are cut by small diorite dikes with faulted contacts subsequently invaded by late-quartz-carbonate-pyrite veins. Andesitic volcanics in this hole host a series of multigenerational veins that carry sulphide mineralization. The top 173 m of the drill hole highlighted a similar sequence of early- to late-stage vein generations as identified in DH001/002.

The alteration intensity and vein densities fluctuate downhole with silicified zones representing vein stockwork mineralization, including B-veins and pyrite-chlorite-magnetite veins. The alteration changed from sericite-chlorite plus or minus clay (SCC) to distal propylitic at 173 m indicating a more distal propylitic alteration to the end of hole.

DH003 are assays pending.

Drill hole RCKD-24-004 (DH004), azimuth 270 degrees, dip minus 60 degrees

DH004 was also collared from pad 9, tested from the margins into a prominent 500 square m wide magnetic anomaly, adjacent to elevated copper and moly rock and soil geochemistry.

DH004 cut extensive andesitic volcanics with repeated propylitic, sericite-chlorite alteration and silicification coincident with a sequence of multigenerational veins as identified in DH001/002. The upper 144 m indicated a gradual increase in the alteration intensity, vein densities and copper-sulphide mineralization down to 245 m.

The propylitically altered andesite flows host multiple fluid pathways with intense silicification and 2 per cent to 4 per cent fine-grained disseminated magnetite, confirming the source of the magnetic anomaly targeted to the west of the drill hole collar. Hydrothermal magnetite was identified in association with distinctive quartz-pyrite-magnetite-chlorite veining. The alteration intensity fluctuates from silicified, magnetite-bearing inner propylitic to carbonate-rich outer propylitic alteration; the latter is typically confined to shear/fault structures. The drill hole ended in what is interpreted to be a post-mineral hornblende diorite dike.

DH004 are assays pending.

Drill hole RCKD-24-005 (DH005), azimuth 210 degrees, dip minus 69 degrees

DH005 was drilled to the south from pad 1, located on the western access road. The drill hole targeted outcropping intrusive and andesitic volcanic rocks characterized by a cluster of overlapping gossans, geochemical copper, moly and magnetic anomalies seen in the Kendal Creek drainage approximately 90 m vertically below and south of the collar location.

The drill hole intersected a sequence of highly altered andesitic rocks cut by multiple porphyry intrusions and postmineral dikes. The andesitic volcanics are characterized by strong propylitic alteration and internal fluid pathways of intense silicification, hydrothermal magnetite and elevated chalcopyrite mineralization. Notable zones include a shallow hydrothermal breccia (42 to 55 m) characterized by up to 30 centimetres (cm) subrounded andesite/diorite clasts cemented in a siliceous matrix hosting blebs of coarse-grained pyrite plus or minus chalcopyrite.

Downhole, andesite is intruded by quartz-diorite porphyry from 68 to 102 m characterized by intense silicification and patchy white argillic alteration. A distinct medium-grained diorite is emplaced as stock and dikes from 198 to 284 m. This diorite phase is characterized by variably pinkish colour interpreted as hematite dusting and staining in the groundmass. The diorite has undergone sericite-chlorite and propylitic alteration with intense silicification and approximately 2 per cent magnetite. Mineralization consists of 3 per cent to 4 per cent pyrite with traces of chalcopyrite increasing with depth.

DH005 assays are pending.

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 support 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.

Red Canyon is part of the NewQuest Capital Group, which is a discovery-driven investment group that builds value through the incubation and financing of mineral projects and companies.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Christopher J. Wild, PEng, Red Canyon's exploration manager and a qualified person (QP) as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. Drilling at Kendal was conducted by Diamondhead Drilling using an Atlas Copco CS-1000 core drill rig. Initial drilling used HQ-sized core to advance through up to 15 m of overburden and up to 50 m of broken or fractured rock. Once competency of the rock improved, core size was reduced to NQ.

Core was received, geotechnically and geologically logged, photographed, and cut by core saw at the company's leased core facility in Terrace, B.C. Samples were laid out, cut and sampled to the company's specified sample intervals. Certified reference materials (CRMs), including blanks and standards, were inserted every 10 samples. Half-core samples are placed in plastic sample bags with the remaining half retained in core boxes at the core facility. Samples are dispatched to ALS Laboratories facilities in Terrace, B.C., an accredited analytical laboratory meeting ISO/IEC 17025:2005 and ISO 9001:2015. Samples are prepared by crushing and grinding by ALS methods CRU-21 and PUL-32, respectively. The pulps are then analyzed for 36 elements by method ME-ICP41. Gold is assayed by fire assay using ALS method Au-AA23 using a 30-gram sample charge and AES (atomic emission spectroscopy) finish. Laboratory standards and QA/QC (quality assurance/quality control) are monitored by the company.

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