Mr. Wendell Zerb reports

RED CANYON PLANS MOBILE MT GEOPHYSICAL SURVEY AT KENDAL PROJECT

Red Canyon Resources Ltd. has engaged Expert Geophysics Surveys Inc. to complete a 258-line-kilometre mobile magnetotelluric (Mobile MT) helicopter-borne survey. This survey will cover the entirety of Red Canyon's Kendal property, located in western-central British Columbia. The survey is expected to begin in early June, 2025.

The company is focused on impactful, value-added exploration to make discoveries of copper and copper-gold deposits in established mineral belts in North America.

Company highlights:

• The company controls a portfolio of eight 100-per-cent-owned, internally generated copper and copper-gold projects. The Kendal project is the company's priority copper project. In 2024, the first-ever drill program at Kendal intersected significant porphyry-related mineralization (see news release dated Jan. 13, 2025).
• The company has compiled Kendal surface and drill data from the 2024 program. Vectoring studies to identify the core areas of the Kendal porphyry system are continuing with expanded plans for additional field studies, including geological mapping, geochemistry and geophysics, prior to additional drilling this year.
• Mobile MT is a leading geophysical technology that aids in the identification of geologic structures, alteration halos and contrasting lithologies in the subsurface. In addition, potential mineralization from near surface to deeper than one kilometre from surface can be inferred based on specific electromagnetic geophysical signatures.

Wendell Zerb, the chairman and chief executive officer of the company, commented: "We expect the Mobile MT data will provide a three-dimensional image of the Kendal project area. Our goal is to use the differences in the electrical conductivity of the various lithologies to assist in mapping the subsurface at Kendal. Furthermore, Mobile MT is known for identifying areas of electrically conductive sulphides potentially linked to mineralized porphyry intrusive centres and resistive bodies representative of intrusions. Our 2024 first-ever drill program at Kendal identified a significant, large-scale copper porphyry system at Kendal. Our goal now is to vector into higher-grade mineralization at Kendal and we believe Mobile MT is an excellent tool to assist our vectoring initiatives."

Overview of projects

The company holds a portfolio of eight 100-per-cent-owned projects in British Columbia, Nevada and Utah. High-priority projects are Kendal in western-central British Columbia and Scraper Springs in northeastern Nevada.

Kendal project

Kendal comprises eight 100-per-cent-owned mineral claims totalling 3,582 hectares, located in western-central British Columbia, approximately 25 kilometres 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 kilometres to the west at Prince Rupert. The project has direct road access, only 3.5 kilometres from Highway 16. The project area lies within the traditional territory of the Kitselas First Nation.

In the fourth quarter of 2024, a first-ever five-hole drill program at the company's Kendal project confirmed the discovery of a new copper porphyry system. All drill holes intersected significant porphyry-style alteration, multigenerational vein sets and highly anomalous copper and molybdenum mineralization (see news release dated Jan. 13, 2025). Based on initial studies focused on vectoring to higher-grade mineralization, the target area is open, particularly south and west from the initial drilling.

The extensive mineralized alteration footprint encountered with these drill holes at Kendal indicates a porphyry system with a massive amount of associated fluid flow. This large alteration footprint and corresponding multiple generations of hydrothermal veins give the company confidence regarding the scale of the system and its potential to host a higher-grade mineralized core.

Vectoring work by Red Canyon suggests Kendal could have several porphyry centres. Work suggests numerous areas remain open to high-grade potential, and, based on alteration, magnetic susceptibility and vein densities in drill holes RCKD-24-001 and RCKD-24-002, the system is open laterally to the south, southwest and southeast and to depth.

Next steps for the Kendal project are as follows:

• Complete SWIR (short-wave infrared), petrographic analyses and physical electrical studies on 2024 core;
• Commence stepout and infill rock, soil and silt geochemistry;
• Expand geological, structural, vein density and alteration mapping;
• Conduct Mobile MT survey and integrate geophysical data with results from 2024 drilling and fieldwork;
• Finalize new drill targets and prepare for 2025 late summer drill program.

Mobile MT -- Expert Geophysics Surveys

Mobile MT utilizes an airborne mobile magnetotelluric system to collect magnetic and both resistivity and conductivity imaging from the surface to a depth of one kilometre. This system can provide key information pertaining to source fluid conduits and structures important in mapping the subsurface and targeting mineralization associated with porphyry systems.

Magnetotellurics (MT) is an established electromagnetic geophysical method that provides accurate subsurface data for reliable geological interpretations. MT measures the Earth's subsurface electrical conductivity using the natural geomagnetic and geoelectric field variations in the Earth. MT utilizes the electrical fields generated by lightning discharges from thunderstorms that propagate through the subsurface. MT is akin to conventional resistivity and electromagnetic surveys but incorporates magnetic fields to further help determine electrical heterogeneities between the Earth and the audio frequencies. This technology is known for identifying geological features of interest better than conventional electromagnetic methods.

The planned program at Kendal includes Expert flying 258 line kilometres of Mobile MT on north-northwest-to-south-southeast lines spanning the entire Kendal project area. Line spacing will be 200 metres with planned perpendicular tie lines to assist in data co-ordination and quality.

The final data processing, colour imaging and mapping will be performed by Expert geophysicists. Preliminary results are expected shortly following the completion of the survey and final results and resulting products are expected within four weeks following the completion of the survey. Surveying is planned to commence in early June, 2025, and expected to take three to five days to complete.

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. 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.

Qualified person

The technical information contained in this update has been reviewed and approved by Wendell Zerb, PGeol, a qualified person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Zerb is not independent by reason of being the chairman, president and chief executive officer of the company.

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