Mr. Jim Coates reports

UAV MAGNETIC SURVEY REVEALS UNTESTED CONVERGENCE ZONE AT AZ COPPER-GOLD PROJECT

Yukon Metals Corp. has completed a 400-line-kilometre, 25-metre-line-spacing UAV (uncrewed aerial vehicle) aeromagnetic survey of its 100-per-cent-owned AZ copper-gold project, six kilometres west of the Alaska Highway and 36 kilometres south of Beaver Creek, Yukon. The survey has identified two intersecting structural trends, oriented at approximately 280 degrees and 345 degrees, that converge at a zone not yet tested by drilling, coinciding with elevated copper-in-soil values, azurite-malachite mineralization and quartz-sericite pyrite alteration on the ground surface.

Highlights:

• Two intersecting magnetic trends converge at a zone not directly tested by the 2026 drill program, where elevated copper-in-soil values and chalcopyrite and malachite mineralization occur at surface.
• Total magnetic intensity (TMI) data broadly correspond with the diorite unit currently being evaluated by drilling, while first vertical derivative (1VD) processing highlights a series of magnetic lineaments interpreted as potential structural features.
• A west-northwest-trending magnetic lineament (approximately 280 degrees) coincides with mapped azurite-malachite mineralization and weak quartz-sericite-pyrite (QSP) alteration. These are surface indicators consistent with a hydrothermal system. A north-northwest-trending feature (approximately 345degree) is spatially associated with a separate copper-in-soil anomaly extending from the ridge crest downslope.
• The 2026 exploration program at AZ included approximately 2,000 metres of drilling in three holes, together with systematic soil and rock geochemical sampling and induced polarization (IP) geophysics. The new magnetic data will be integrated with these data sets to refine additional drill targets.

"The UAV magnetic survey has added meaningful resolution to our understanding of the AZ structural framework," said Jim Coates, chief executive officer of Yukon Metals. "The convergence of two interpreted trends (one coinciding with surface copper mineralization and QSP alteration, the other with a separate soil anomaly) defines a zone that is yet to be tested by our current drill coverage and that we consider a priority for further work. We look forward to integrating this data set with our IP, geochemistry and drilling results as we advance targeting at AZ."

Preliminary magnetic results

Preliminary review of the TMI data indicates that the magnetic response broadly corresponds with the diorite unit in the southwestern area of the property while also highlighting variations that may help refine the currently interpreted extent and internal character of the unit. In areas where existing geology is based on regional mapping, the high-resolution magnetic data provide additional detail that will be evaluated through continuing fieldwork and geological interpretation. The calculated 1VD enhances shorter-wavelength magnetic features and highlights a series of linear magnetic breaks and gradients interpreted as potential structural features and/or geological contacts.

Two prominent orientations are evident in the current data set. A west-northwest-trending magnetic feature oriented at approximately 280 degrees is associated with elevated copper-in-soil values concentrated along the transition from a magnetic high into an adjacent magnetic low. The magnetic low also coincides with mapped azurite-malachite mineralization and weak QSP alteration. The geological significance of these spatial relationships remains under evaluation.

A second north-northwest-trending magnetic feature oriented at approximately 345 degrees is spatially associated with a separate copper-in-soil anomaly extending from the ridge crest onto the adjacent slope, with the strongest copper responses occurring downslope. The two interpreted trends converge within an area that was not directly tested by the recent drilling. The company considers this area of interest for further evaluation as the magnetic data are integrated with drilling, surface geochemistry, IP geophysics and geological observations.

The TMI data also highlight several localized zones of reduced magnetic response within the broader magnetic signature associated with the diorite. The origin of these magnetic lows has not yet been established and may reflect lithological variation, structural effects and/or alteration. Hydrothermal modification or destruction of magnetite is one possible explanation that will be evaluated as additional geological and drilling information becomes available. At this stage, the magnetic interpretation remains preliminary, and the company has not established the geological or mineralizing significance of the individual magnetic features.

UAV aeromagnetic survey

The UAV aeromagnetic survey covered an area of approximately 2.5 kilometres by 3.5 kilometres and comprised approximately 400 line kilometres of magnetic data acquisition. Production lines were flown north-south at 25-metre spacing, with 250-metre-spaced tie lines. The magnetic sensor was flown at a nominal altitude of approximately 45 metres above ground level, using terrain-following flight paths designed to maintain consistent ground clearance. The survey utilized a GEM Systems GSMP-35U potassium-vapour magnetometer in a UAV towed-sensor configuration. Magnetic data were corrected, levelled and microlevelled prior to generation of the final magnetic grids and derivative products. Survey products include total magnetic intensity, first and second vertical derivatives, analytic signal, horizontal derivative, and tilt derivative.

2026 exploration at AZ

Exploration completed at AZ during the 2026 field program to date includes approximately 2,000 metres of drilling in three holes, together with 325 soil samples and 280 rock samples collected across the project. Drilling tested areas of elevated copper geochemistry and an IP chargeability response.

These UAV magnetic data provide an additional high-resolution data set that will be integrated with these results to further refine the geological and structural framework at AZ. A total of 400 line kilometres of high-resolution UAV magnetic data were collected on closely spaced 25-metre survey lines, providing a detailed magnetic data set across the southwest target zone.

Localized zones of reduced magnetic response occur within the broader magnetic signature associated with the diorite and will be evaluated alongside soil and rock geochemistry, IP geophysics, drilling, and geological observations to further evaluate these features and refine future exploration targeting.

Next steps

Yukon Metals will continue to integrate the new magnetic data with surface geology, soil and rock geochemistry, IP geophysics, drill-core observations, and assay results from the recent exploration program. This work will focus on refining the interpretation of the magnetic trends, evaluating the area where the two trends converge and assessing the significance of localized magnetic lows within the broader diorite response. The integrated data set will be used to refine the geological model at AZ and assist in prioritizing areas for future exploration and drilling.

About Yukon Metals Corp.

The Yukon Metals portfolio was built on more than 30 years of prospecting by the Berdahl family, the prospecting team behind Snowline Gold Corp.'s portfolio. The portfolio consists primarily of copper-gold projects, with substantial exposure to tungsten. Additional portfolio assets include gold, silver and lead-zinc polymetallic properties.

The company is well financed and led by an experienced board of directors and management team across technical and financial disciplines. Yukon Metals is focused on fostering sustainable growth and prosperity within Yukon's local communities while simultaneously enhancing stakeholder value. The company's strategy centres on inclusivity and shared prosperity, offering both community members and investors the chance to contribute to and benefit from its ventures.

Yukon

Yukon is an underexplored and minerally endowed district with a mining history dating back to the Klondike gold rush of 1898. With a progressive permitting regime, geopolitical stability and supportive government, it is well positioned to foster the next generation of mines. Yukon is host to a highly experienced and conscientious local work force, fostered by a long culture of exploration, coupled with deep respect for the land. Recent major discoveries with local roots such as Snowline Gold's Rogue project (Valley discovery) demonstrate Yukon's potential to generate fresh district-scale mining opportunities.

Qualified person

The technical content of this news release has been reviewed and approved by Helena Kuikka, PGeo, vice-president, exploration, for Yukon Metals and a qualified person (as defined by National Instrument 43-101).

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