Mr. Mike England reports

SKY GOLD CORP. ASSIGNS SHEBANDOWAN STAR LAKE OPTION TO GOLD X2

Sky Gold Corp. has signed a definitive agreement with Gold X2 Mining Inc. whereby Gold X2 will acquire, in stages, Sky Gold's interest in an option agreement for the Star Lake claims located approximately 60 kilometres west of the city of Thunder Bay in Northwestern Ontario (see initial press release dated March 23, 2023, and as amended on July 11, 2025).

"By bringing in Gold X2 to our Star Lake option, we are now able to focus our efforts in Nevada on the Evening Star project. Gold X2 is very focused in the area and will be in a much better position to properly advance the Star Lake project," commented Mike England, Sky Gold chief executive officer.

Deal terms

Pursuant to the definitive agreement, signed on Jan. 9, 2026, Gold X2 has the right to earn 50 per cent, 75 per cent and 100 per cent of Sky Gold's interests in the option agreement between Sky Gold and a local prospector on the terms outlined below. The definitive agreement, including all share issuances thereunder, remains subject to the approval of the TSX Venture Exchange. Gold X2 will have the exclusive right to purchase a 100-per-cent interest in the mineral rights forming the Star Lake property according to the following stages:

• Stage 1 -- acquisition of 50 per cent of the option interest: To acquire 50 per cent of the option interest, Gold X2 must: (i) provide $395,200 of assessment credits for the Star Lake property, which has been provided as of today; (ii) issue to Sky Gold shares of Gold X2, having a total value of $75,000; (iii) pay the local prospector $200,000 in either cash or Gold X2 shares, at Gold X2's election, and issue the local prospector shares of Gold X2, having a total value of $25,000, in each case, by March 14, 2026; and (iv) complete Sky Gold's exploration spend obligation under the option agreement totalling $1-million on or before March 14, 2028.
• Stage 2 -- acquisition of 75 per cent of the option interest: To acquire 75 per cent of the option interest, Gold X2 must: (i) incur an additional $250,000 exploration spend on the Star Lake property; (ii) issue to Sky Gold shares of Gold X2, having a total value of $100,000; and (iii) issue the local prospector shares of Gold X2, having a total value of $50,000. There is no time limit to satisfy any of these obligations.
• Stage 3 -- acquisition of 100 per cent of the option interest: To acquire 100 per cent of the option interest, Gold X2 must: (i) incur an additional $250,000 exploration spend on the Star Lake property; (ii) issue to Sky Gold shares of Gold X2, having a total value of $125,000, and pay Sky Gold $250,000 in cash; and (iii) issue the local prospector shares of Gold X2, having a total value of $50,000. There is no time limit to satisfy any of these obligations.

Exercising the option: Upon acquiring 100 per cent of the option interest, Gold X2 may exercise its option to acquire the Star Lake property by issuing the local prospector that number of Gold X2 shares having an aggregate value equal to the value of 125,000 shares of Sky Gold, determined as of the issuance date. Upon completion of the acquisition, the local prospector will retain a 2-per-cent net smelter return royalty on the Star Lake property, and Gold X2 will retain Sky Gold's rights under the option agreement to purchase the NSR royalty from the local prospector in full for $3-million. Additionally, Gold X2 will be required to make minimum and advance royalty payments to the local prospector of $20,000 yearly from 2030 to 2033.

Sky Gold issuances to local prospector:

• Sky Gold shall: (i) on or before March 14, 2026, issue 250,000 common shares in the capital of Sky Gold in accordance with Section 3(b)(iv) of the option agreement; and (ii) on or before March 14, 2027, issue that number of Sky Gold shares, having an aggregate value of $25,000;
• Local prospector milestone share issuance: Upon Gold X2 acquiring the 75-per-cent assignment interest, Sky Gold shall issue to Parker that number of Sky Gold shares having an aggregate value of $50,000; and (c) upon Gold X2 acquiring the 100-per-cent assignment interest, Sky Gold shall issue to Parker that number of Sky Gold shares, having an aggregate value of $50,000.

All Gold X2 and Sky Gold shares issued in connection with the definitive agreement will be subject to a hold period of four months and one day from the date of issuance in accordance with applicable securities laws.

There are no finders' fees or commissions payable in connection with the acquisition. The company confirms that there are no non-arm's-length parties involved in the agreement.

About Sky Gold Corp.

Sky Gold is a mineral exploration company focused on advancing precious and base metal projects in North America. The company's flagship Evening Star property, located in the prolific Walker Lane gold trend, hosts multiple high-priority gold and copper targets, including Tower Gold, High Life, Gold Bug and Evening Star.

We seek Safe Harbor.