Mr. Mike Stier reports

SAGA METALS COMPLETES ACQUISITION OF WOLVERINE HEAVY RARE EARTH ELEMENT PROJECT IN LABRADOR-REE MINERALIZED POTENTIAL SIMILAR TO STRANGE LAKE AND TANBREEZ

Further to Saga Metals Corp.'s news release dated April 14, 2026, the company has closed the previously announced acquisition of all of the issued and outstanding shares of Catalyst Rare Metals Ltd., which holds a 100-per-cent interest in the Wolverine rare-earth element (REE) project, a royalty-free, heavy rare-earth project located near the coast of central Labrador, Canada. The acquisition was completed in accordance with a share purchase agreement (the SPA) dated April 13, 2026, among the company, Catalyst and each of the shareholders of Catalyst (collectively, the vendors).

Wolverine REE project highlights:

• The Wolverine REE project lies within the peralkaline Flower Lake igneous suite, an intrusive-volcanic complex that is part of the 1.28- to 1.13-billion-year-old Gardar rifting province, the latter hosts globally significant REE deposits: Tanbreez within the Ilimaussaq alkaline intrusive complex and Strange Lake within a peralkaline granite.
• The project which includes a contiguous 29,450 hectares has district-scale potential, HREE enrichment, near-surface mineralization and Tier 1 jurisdiction positions it as a potentially significant strategic REE asset.
• Two thousand twenty-five reverse circulation (RC) drilling confirmed broad, near-surface REE mineralization across a 1.7-kilometre-by-1.2-kilometre area hosted within a significant peralkaline caldera system.
• Five hundred thirty-seven samples from the 2025 program returned consistent mineralization, supporting strong continuity across the drilled footprint. Key intercepts include:
  • WOLRC25-003: 48.8 metres at 0.77 per cent total rare-earth oxides (TREO) from 1.5 m, including 18.3 m at 1.06 per cent TREO;
  • WOLRC25-006: 38.1 m at 0.71 per cent TREO from surface, including 4.6 m at 1.53 per cent TREO;
  • WOLRC25-002: 51.8 m at 0.52 per cent TREO from surface, including 33.5 m at 0.67 per cent TREO.
• Peak drill program assays reached 2.03 per cent TREO (WOLRC-006-25 -- sample 2355079 from 1.5 to three m), with an average heavy rare-earth oxides (HREO) contribution of approximately 24 to 28 per cent, highlighting strong heavy rare-earth enrichment.
• Large-scale potential is supported by 26 square kilometres of exposed mineralized tuff at surface, 25 to 50 m thickness and less than 10 per cent of the prospective unit drilled to date.
• Mineralization remains open and underexplored, with greater than 1 per cent TREO enriched zones identified.
• In the southwestern area of the project, seven REE-bearing peralkaline pegmatites, have been identified.
• Thirty-nine grab sample returned assays up to 21.6 per cent TREO.

Michael Garagan, CGO and director of Saga Metals, commented: "Closing the Wolverine acquisition and launching our diamond drill program this summer marks a pivotal step forward for Saga. We are rapidly advancing toward the completion of maiden mineral resource estimates on two projects this year, including our Radar titanium-vanadium project. This dual-track approach not only derisks our portfolio but also positions the company to deliver meaningful resource growth across our critical minerals assets in Labrador. We are executing with discipline and momentum, and I'm very pleased with the progress we're making on multiple fronts."

Wolverine REE project overview

The Wolverine REE project now comprises nine contiguous mineral licenses totalling approximately 294.5 square kilometres, situated approximately 50 km west of Hopedale and 12 km inland from the Labrador coast. The project is accessible by fixed-wing aircraft to the Hopedale gravel airstrip, followed by helicopter to site. Infrastructure advantages include commercial air services, ferry services and road access in the towns of Natuashish and Hopedale, with communities that have established agreements with the nearby Vale Voisey's Bay mine. The project is only 12 km from tidewater, offering logistical support to potential year-round access.

The Flowers River igneous suite (FRIS):

The entire property is hosted within the Flowers River igneous suite (FRIS), a 1.28-billion-year-old Mesoproterozoic peralkaline magmatic province that represents one of the largest known peralkaline intrusive-volcanic complexes in Labrador. The FRIS comprises the Flowers River peralkaline granite, the Nuiklavik volcanic caldera complex and associated ring dike intrusions covering a significant area along the central Labrador coast.

A 2018 airborne total field magnetic survey of the Hopedale block reveals the geophysical expression of the Flowers River igneous suite (FRIS) within the broader Nain Plutonic suite (NPS). The FRIS is expressed as a prominent, high-intensity circular magnetic anomaly, consistent with the magnetite-rich peralkaline to alkaline composition of the suite. This strong magnetic response contrasts sharply with the more subdued and variable magnetic signatures of the surrounding NPS lithologies, delineating the caldera complex boundary and highlighting the compositional distinctiveness of the FRIS from the broader NPS. The Wolverine REE project is located within this magnetic high.

Upcoming 2026 work program and exploration priorities at the Wolverine REE project

Saga plans to implement a 2026 work program that is designed to advance the Wolverine REE project toward a maiden National Instrument 43-101 mineral resource estimate through diamond drilling, targeted follow-up drilling and evaluation of additional high-priority targets including zones within the additional claims outlined above. The program is expected to deliver the key metallurgical, mineralogical, structural, density and QA/QC (quality assurance/quality control) data required to support resource definition, while further refining the company's understanding of mineralization controls, REE host phases and HREE enrichment.

The company's primary focus will be on diamond drilling for resource validation through a 4,000 to 5,000 m drill program expected to start at the beginning of August, 2026, with metallurgical testwork to follow.

Rare-earth elements: strategic importance, supply concentration and growing geopolitical risk

Rare-earth elements (REEs) are a group of 17 critical metals essential to modern defence systems, aerospace, electric vehicles, wind turbines and advanced electronics. Their unique magnetic and performance properties make them difficult to substitute in high-tech applications. According to the International Energy Agency, rare earths represent one of the most geographically concentrated supply chains among all critical minerals.

China maintains dominant control over the sector, accounting for approximately 60 to 69 per cent of global mine production and roughly 90 to 91 per cent of refining and separation capacity. The country also produces about 94 per cent of the world's rare-earth permanent magnets. This vertical integration gives China significant pricing power, supply leverage and geopolitical influence, while non-Chinese processing capacity remains limited despite growing output from projects in Australia and the United States.

Demand for rare earths is rising sharply, driven by the global transition to electric vehicles and renewable energy, as well as sustained requirements from the defence and aerospace sectors. Key applications include high performance magnets in fighter jets (such as the F-35), precision-guided munitions, radar systems, satellite technology, jet engines and offshore wind turbines. Industry analysts project strong growth in magnet rare-earth demand outside China through 2035, particularly from electrification and defense modernization programs.

China has demonstrated a willingness to restrict rare-earth exports during periods of geopolitical tension. Notable examples include the sharp reduction in exports to Japan in 2010 and the introduction of new export controls in 2025 on heavy rare-earth elements and permanent magnets, which disrupted supply chains in the automotive, aerospace and defence industries. These actions underscore the strategic risks associated with heavy reliance on a single dominant supplier.

Western governments and companies are actively working to diversify supply chains through new mining and processing projects, government funding, and offtake agreements.

Terms of the acquisition

Pursuant to the terms of the SPA, Saga acquired all of the issued and outstanding shares of Catalyst for initial consideration of 4,249,982 common shares of Saga issued to the vendors on closing of the acquisition and cash in the amount of $1-million to be paid to the vendors within 120 days from the closing. Saga also agreed to make additional payments to the vendors upon achieving certain milestones with respect to the Wolverine REE project, as more particularly set out in the company's news release dated April 14, 2026.

The Saga shares to be issued to the vendors as part of the initial consideration and the milestone payments may be subject to escrow and/or resale restrictions under the policies of the TSX Venture Exchange and applicable securities laws. In addition, consideration shares issued or issuable to a vendor entitled to 3 per cent or more of the consideration shares in the aggregate are subject to 36-month escrow, whereby 10 per cent were released on issuance and an additional 15 per cent will be released every six months thereafter.

In addition to the foregoing, the company entered into an investor rights agreement (the IRA) among Saga and certain of the vendors, pursuant to which (a) during the period beginning on closing and ending on the date on which all of the milestone payments have been paid, Saga granted to such vendors the right to nominate one non-voting board observer, and (b) until the later of (i) one year from closing or (ii) the date such vendors collectively cease to hold at least 5 per cent of Saga's issued and outstanding shares, such vendors have the right to participate in future issuances of securities by the company for cash consideration, such that those vendors may maintain their pro rata ownership of Saga.

Qualified person

Dr. A. Miller, PGeo, is an independent qualified person as defined under National Instrument 43-101 and has reviewed and approved the technical information disclosed in this news release.

Technical disclosure

A survey of holes was completed using a differential global positioning system (DGPS) using a Emlid Reach RS2+. The RS2+ is a global navigation satellite system (GNSS) receiver that offers high-precision positioning. GNSS is a term that refers to the International Multi-Constellation Satellite System, which includes GPS, GLONASS, Baidu, Galileo and any other constellation system. GPS traditionally refers to the American global positioning system. Differential correction techniques are used to enhance the quality of location data gathered using GNSS or GPS receivers. These data are beneficial to accurately and precisely locate drill collars, to verify historic work, as well as increase confidence in mineral resource estimates.

The GT RC drill was powered by two air compressors. Drill holes could be drilled up to an angle of negative 60 degrees and 60-metre depth dependent on ground conditions, where the 2025 holes were drilled at a dip of negative 80 degrees. Cased hole diameter is 4.5 inches and open hole diameter is 3.75 inches. Drill was operated by a two-person crew on a one-by-12-hour-shift-per-day schedule.

Compass Group geologists, Michael Ives-Ruyter and Alex Ovas, were on site for marking drill sites and logging drill chips. Samples were prepared onsite with a splitter and bagged. Archive material was collected in chip trays, as well as in small kraft bags. Large archive samples were collected in one- to two-kilogram bags and stored in Happy Valley-Goose Bay, Labrador. Samples for analysis were shipped to Activation Laboratories Ltd. in Ancaster, Ont. Check chip logging was completed by Clinton Davis in Ottawa, Ont.

In total, 536 chip samples, 13 Standards (STD CDN-RE-1203) and 35 blanks were collected. The standard used for QA/QC was CDN-RE-1203 certified by CDN Resource Laboratories Ltd and prepared using ore supplied by Canadian International Minerals from the Carbo property of the Copley Range in central British Columbia. Blanks were inserted at the end of every hole as well as every 50 samples in sequence offset from Standards. Standards were inserted every 50 samples as well as additional randomized to have at least one standard on every second hole.

About Saga Metals Corp.

Saga Metals is a North American mining company focused on the exploration and discovery of a diversified suite of critical minerals that support the North American transition to supply security. The Radar Ti-V-Fe (titanium-vanadium-iron) project comprises 24,175 hectares and entirely encloses the Dykes River intrusive complex, mapped at 160 square km on the surface near Cartwright, Labrador. Exploration to date, including 15,358 m of drilling, has confirmed a large, mineralized layered mafic intrusion hosting vanadiferous titanomagnetite (VTM) and ilmenite mineralization with strong grades of titanium and vanadium.

The Wolverine heavy rare-earth element project in Labrador is a near-surface REE system hosted within a peralkaline caldera complex that shares strong geological similarities with the Tanbreez and Strange Lake deposits. The project features consistent mineralization, with zones spanning 26 square km, including drill assays up to 2.03 per cent TREO with approximately 28 per cent HREO content, and sample assays up to 21.6 per cent TREO.

The Double Mer uranium project covers 25,600 hectares and features uranium radiometrics that highlight an 18 km east-west trend, with a confirmed 14 km section producing samples as high as 0.428 per cent U3O8 (triuranium octoxide).

Additionally, Saga owns the Legacy Lithium project in Quebec's Eeyou Istchee James Bay region. This project spans 72,701 hectares and shares significant geological continuity with other major players in the area, including Rio Tinto, Li-FT Power, SOQUEM and Loyal Metals.

With a portfolio spanning key commodities critical to the clean energy future, Saga is strategically positioned to play an essential role in securing critical minerals.

We seek Safe Harbor.