Mr. Wendell Zerb reports

RED CANYON PROVIDES EXPLORATION UPDATE ON ITS SCRAPER SPRINGS COPPER PROJECT, NEVADA USA

Red Canyon Resources Ltd. has provided an exploration update on its Scraper Springs copper project in northern Nevada, outlining exploration results and new insights from last year's activities. 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:

• The company's 100-per-cent-owned Scraper Springs copper project in northern Nevada hosts a four-kilometre-by-four-kilometre alteration footprint comparable in scope to some of the world's largest copper deposits;
• In Q4 2024 the company expanded its geophysical understanding of Scraper Springs by completing additional deep penetrating IP (induced polarization) geophysical lines, a gravity survey and magnetic inversion studies. This expanded program of geophysics has greatly improved the company's understanding of the potential of the Scraper Springs system at depth and generated high-priority drill targets;
• Internal and independent third party targeting studies have identified new, important observations and reiterate that Scraper Springs has the potential to host a Tier 1 copper porphyry system. Volumetrically significant hypogene alunite and pyrophyllite alteration together with late zunyite alteration in high-temperature feeders indicate potential for the system at Scraper Springs to host an upgraded potassic core (1 per cent copper), as seen at the Resolution deposit in Arizona and the Oyu Tolgi mine in Mongolia;
• Historic drilling at Scraper Springs largely targeted near-surface gold-related systems. The only deep drill hole on property, collared 1.5 km from Red Canyon's primary target area, intersected 0.17 per cent copper near the end of the drill hole. This drill intercept is interpreted to be associated with a porphyry-driven hydrothermal feeder, adding confidence to the porphyry potential at Scraper Springs;
• The company controls a portfolio of eight 100-per-cent-owned copper and copper-gold projects.

Wendell Zerb, the chairman and chief executive officer of the company, states: "The Tier 1 copper potential at Scraper Springs puts it into a rare class of high-profile copper porphyry targets. While our previous work at Scraper Springs suggested good potential to target a large porphyry system to depth, new geophysics combined with third party targeting studies have vastly improved our confidence at Scraper Springs. Furthermore, geological evidence that Scraper Springs exhibits characteristics that suggest the possibility for an upgraded copper core adds encouragement to the potential. Finally, the infrastructure at Scraper Springs is excellent, adding considerable margin upside should an economic copper system be discovered. Scraper Springs is now considered drill ready with multiple excellent drill targets in one of the world's largest untested hydrothermal alteration systems."

Project overview

The company holds a portfolio of eight 100-per-cent-owned (1) projects in British Columbia, Nevada and Utah. High-priority projects are Kendal in west-central British Columbia and Scraper Springs in northeast Nevada. For more information on the company's newly identified Kendal copper-moly porphyry discovery in west-central British Columbia, see Red Canyon press releases dated Nov. 4, 2024, and Jan. 13, 2025.

Scraper Springs project

Scraper Springs is 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. The approximate four km by four km alteration footprint surrounding the Scraper Springs target is comparable in scope to some of the world's largest copper deposits. Access is considered excellent with maintained paved and packed gravel year-round road access.

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 single-line deep IP survey at the project, which outlined a significant, chargeable zone near the limit of the survey penetration depth not previously drill tested. One historical drill hole approximately 1.5 km east of this chargeability target intersected propylitic alteration and anomalous copper mineralization with values of 0.17 per cent copper over 10.7 metres. This zone is interpreted to be a distal skarn mineralization driven by a porphyry-related hydrothermal feeder.

2024 geophysics

In Q4 2024, Zonge International Inc. completed three additional induced polarization and resistivity survey lines at the Scraper Springs project. This survey was to follow up the single IP line completed by Red Canyon in 2021. The 2024 time-domain survey used a dipole-dipole array configuration with an a-spacing of 300 m on three lines for a total of 7.2 line kilometres of electrode coverage. A two-dimensional inversion was completed to produce a section representative of an image of the electrical properties of the subsurface. The program identified an expanded zone of chargeability identified in 2021 with increased depth resolution, as well as several new centres of high chargeability. Several features identified represent chargeability highs corresponding with conductive zones (low resistivity).

Based on geological and alteration mapping, the company believes the Scraper Springs area is underlain by a large intrusive complex with causative intrusions responsible for the large four km by four km hydrothermal alteration cell seen at surface. The alteration footprint is characterized by widespread distribution of an advanced argillic alteration mineral assemblage that indicates formation from hot, acidic and oxidized fluids. High-temperature minerals such as pyrophyllite and zunyite in steep structures, as well as abundant dickite and alunite, indicate that the current erosional surface is close to the base of the litho cap. This further suggests a possible porphyry system remains intact and at moderate depths.

In Q3 2024, Magee Geophysical Services LLC conducted a detailed gravity geophysical survey covering the Scraper Springs area. The survey included 429 new stations spaced 200 m apart. The central area of Scraper Springs is represented by a 10 km by five km north-south-trending gravity high. This high is interpreted to represent a deep, intrusive complex likely associated with causative intrusions responsible for the large hydrothermal alteration footprint at Scraper Springs.

In 2024, the company also engaged Fathom Geophysics to conduct a magnetic vector inversion study on the Scraper Springs 2005 ground magnetics survey data. Fathom work identified that the moderate magnetic high, central at Scraper, and associated with the North and South intrusive stocks, appears to coalescence at depth suggesting a larger, intrusive body continues to depth.

New targeting studies

The company, together with independent consulting geologist Dr. Mike Sepp, undertook a review of Scraper Springs geophysics, geological and alteration mapping, geochemistry, and hyperspectral work. In particular, Dr. Sepp is considered an expert in high-temperature minerals (zunite and pyrophylite) associated with porphyry systems.

The following are some important conclusions developed previously and as part of Dr. Sepp's review work:

• Scraper Springs has a Tier 1 size alteration cell (four km by four km) analogous to world's largest porphyry deposits;
• Favourable project magnetics with a large property-scale magnetic low (hydrothermal alteration) and associate bull's eye magnetic high;
• New IP geophysics outline a series of large anomalies (chargeable and conductive zones) that underlie the favourable deep litho cap alteration;
• The large footprint of alunite alteration at Scraper Springs likely indicates strongly oxidized magmas, which are important to develop porphyry systems worldwide;
• North and South stock diorite intrusions at Scraper Springs are the same age as Bingham Canyon in Utah (38 megaannum);
• Strong high-temperature zunyite alteration indicates high chlorine magmatic fluids favourable to porphyry formation;
• Late zunyite alteration in high-temperature feeders indicate potential for an upgraded potassic core (1 per cent Cu), as seen at the Resolution deposit in Arizona and the Oyu Tolgi mine in Mongolia;
• Surface alteration and indicator geochemistry model the system at base of the litho cap, suggesting high preservation potential of system while also suggesting reasonable exploration target depths;
• Reprocessing of hyperspectral SWIR (short-wave infrared imagery) data discovered the presence of mixed muscovite and pyrophyllite in high-temperature feeder structures, characteristic of the litho cap porphyry transition at Yerington, United States; Pebble, United States; KSM, Canada; Oyu Tolgoi, Mongolia; Far Southeast-Lepanto, Philippines; El Salvador, Chile; Los Helados, Chile; Valeriano, Chile;
• One historical deep drill hole approximately 1.5 km east of the current target area intersected propylitic alteration and anomalous copper mineralization with values of 0.17 per cent copper over 10.7 m;
• This drill intercept possibly represents a hydrothermal exoskarn zone interpreted to be associated with an adjacent copper porphyry system.

The company views Scraper Springs as an important, high-profile copper project with excellent discovery potential. Scraper Springs is drill ready, and the company is currently working through project and finance planning, and budgeting for 2025.

Corporate strategy

Red Canyon is focused on exploring for copper- and copper-gold-related mineral systems within mining-friendly jurisdictions in North America, with a particular focus on British Columbia and the Western United States. The company is specifically targeting new or underexplored areas within established, premier copper districts.

The Red Canyon team has sourced and advanced its portfolio of 100-per-cent-owned (1) projects over the last four years using leading-edge geoscience to generate new exploration concepts. The company is largely focused on exploring for and acquiring new projects. Projects are either acquired by staking claims on open ground, or through options with third parties, on terms that allow the company to acquire a 100-per-cent project interest.

Red Canyon's plan is to drill test priority projects with a goal of bringing targets to a decision point as quickly and cost-effectively as possible. The company also intends to advance earlier-stage projects to a drill decision by executing geologic, geochemical and geophysical programs. Red Canyon is executing a corporate strategy of seeking out strategic alliances, and will evaluate opportunities to joint venture, option or sell projects to qualified partners to maximize its exposure to exploration success.

Additional information on the company's projects can be found on the company's website. Further projects are in development, and details will be disclosed as information comes available.

(1) Red Canyon holds three projects subject to option agreements under which the company may earn 100-per-cent interest in the projects.

About Red Canyon Resources Ltd.

Red Canyon Resources is a technically 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. 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, junior 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 company that builds value through the incubation and financing of mineral projects and companies.

Qualified person

The technical information contained in this update has been reviewed and approved by Wendell Zerb, PGeol, a qualified person (QP) as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

We seek Safe Harbor.