Canary Gold Launches Major 20,000-Metre Drilling Campaign at Madeira Project

Canary Gold Corp. has mobilized its 2026 exploration program at the Madeira Project with the arrival of the first drill rig on site, initiating a comprehensive 20,000-metre drilling campaign. The company has engaged Geosol, a leading drilling services contractor, to execute this multi-rig program focused on defining near-surface mineralization through specialized geological definition and rapid regional coverage.

The exploration program employs a dual-rig strategy combining two distinct drilling methodologies. The first rig utilizes a screw-auger drilling system, a specialized technique optimized for unconsolidated ground conditions designed to recover high-quality samples from the favorable Mocururu geologic horizon and associated prospective gravel beds. This phase targets definition of high-priority geological zones with approximately 5,000 metres across roughly 100 drill holes at an initial grid spacing of 200 m x 100 m, drilling to maximum depths of approximately 50 metres per hole.

The second phase involves Reverse Circulation drilling expected to commence during the second half of January. While the screw-auger program focuses on defining specific near-surface geological units, the RC rig will be deployed to sweep the broader land package included in the original agreement with New Frontiers. This reconnaissance drilling aims to rapidly assess regional geological continuity and identify new priority targets across the property with approximately 15,000 metres across roughly 300 drill holes at a wide-spaced grid of approximately 2,000 m x 1,000 m.

In parallel with drilling mobilization, the company has completed a comprehensive update of its corporate website and investor presentation materials available at https://www.canarygold.ca. These refreshed materials are designed to more clearly communicate the geological framework, exploration strategy, and scale of the company's land position while ensuring consistent and accessible disclosure for investors. Mark Tommasi, President of Canary Gold Corp., emphasized that as the company moves into an active drilling phase, updated public-facing materials better reflect where the company is today and support clear communication during what is expected to be a productive year of exploration.

The company also announced the grant of 6,107,500 stock options to certain directors, officers and consultants pursuant to the company's Omnibus Equity Incentive Plan. The options have an exercise price of $0.27 per common share for five years from the date of grant, with all securities subject to a statutory hold period of four months and one day. The grant constitutes a related party transaction pursuant to Multilateral Instrument 61-101, with the company relying on exemptions from formal valuation and minority shareholder approval requirements as the fair market value of stock options granted to related parties does not exceed 25% of the company's market capitalization.

The scientific and technical information contained in the announcement has been reviewed and approved by Andrew Lee Smith, P.Geo., Executive Director of Canary Gold Corp., who is a Qualified Person as defined under National Instrument 43-101. The information relates to early-stage exploration results, with heavy-mineral analyses and field-based observations not providing quantitative gold grades and requiring additional drilling, systematic sampling, and assay verification to determine significance. Visible gold described represents qualitative field observations only and does not confirm grade, continuity, or economic mineralization, while references to potential mineralization remain conceptual in nature with insufficient exploration to define a mineral resource.