Canary Gold Reports Visible Gold Grains in Gravity Concentrates From 29 of 30 One-Metre RC Samples at Madeira River Project

Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported that independent specialist laboratory Overburden Drilling Management Limited (ODM) identified visible gold grains in laboratory-prepared gravity concentrates from 29 of 30 consecutive one-metre reverse-circulation (RC) samples collected from hole RC-0032 at the Jaci Paraná target within the Madeira River Project in Rondônia, Brazil. The results provide repeated downhole recovery of visible gold grains, but they do not represent head grades or establish grade continuity beyond the sampled hole. These findings support the Company's transition to representative whole-sample testwork and focused sonic sampling at the target.

The ODM analysis identified 190 visible gold grains, with 156 grains (82.1%) reshaped, indicating transport and alluvial reworking. The visible-gold population is fine by particle count, with 166 grains (87.4%) measuring 100 micrometres or less. However, only five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass reported for the concentrate, illustrating a pronounced coarse-particle tail and material nugget-effect risk. The ODM observations are geologically meaningful but semi-quantitative, as reported calculated ppb values relate to visible gold in a heavy-mineral concentrate and are based partly on an assumed concentrate mass. They are not sample head grades, metallurgical recovery results, or mineral resource estimates.

The RC-0032 results provide additional vertical information at one location within the approximately 6,700-hectare conceptual paleochannel target. Results received from the broader exploration program support the paleochannel interpretation but do not yet establish representative grade or grade continuity. Canary is planning an intermediate quantitative test program comprising approximately 40 selected one-metre RC samples expected to weigh approximately 25 kilograms each. The proposed work would include controlled gravity concentration, analysis of the gravity product and tails, and mass-balance, volume and density controls, subject to final laboratory scope and Qualified Person review.

The Company also received an indication of potential sonic-drill availability in September 2026 and is evaluating contracting, site access, permitting, program design and budget requirements. Focused sonic sampling would be designed to assess representative recovered volumetric gold grades, expressed in milligrams per cubic metre (mg/m³), while preserving both fine gold and the important coarser-gold fraction. A larger sonic drilling campaign, potentially exceeding 15,000 metres, would only be considered if representative sampling produces sufficiently encouraging and reproducible grade, recovery, continuity, density and volume data to justify resource delineation work.

“The significance of the ODM results is the repeated recovery of visible gold grains through the submitted interval in RC-0032, rather than any single calculated concentrate value,” said Mark Tommasi, President of Canary Gold. “The results provide additional vertical information at that location and support continued evaluation, but they are not representative head grades or metallurgical recovery results and do not establish grade continuity beyond the sampled hole. Our next phase is designed to generate representative and auditable volumetric data. We plan to test complete submitted RC sample material, quantify gravity recovery and losses and then evaluate focused sonic sampling. A major resource delineation program would only be considered if that work produces sufficiently encouraging and reproducible results.”

The current exploration database includes 45 RC holes totalling 2,851 metres, 14 PQ (dry diamond drilling) holes totalling approximately 902 metres and 63 screw auger holes totalling approximately 1,297 metres, for a combined 2026 drilling and auger program of approximately 5,050 metres. Drilling has intersected repeated intervals of rounded to subrounded granules, pebbles, gravels and coarse sands across the target area, consistent with the interpreted alluvial architecture. Gold particles have been observed in concentrated material from multiple drill locations, but individual RC holes sample a very small volume relative to the conceptual paleochannel target.

The staged program is designed to test representativeness and recovery before committing capital to a major resource delineation campaign. The first phase involves whole-sample RC validation testwork on approximately 40 selected one-metre samples, expected to require approximately three to four weeks following laboratory receipt. The second phase involves focused sonic drilling and bulk sampling, with initial design under consideration comprising close-spaced sonic grids across selected priority areas, with each grid potentially involving approximately 800 metres of drilling. The principal reporting metric is expected to be milligrams of recovered gold per cubic metre (mg/m³), supported by density, moisture, sample recovery and mass-balance data. Only if representative sampling produces sufficiently encouraging and reproducible data would Canary consider a larger sonic drilling campaign, potentially exceeding 15,000 metres, designed to collect data required to assess whether an inferred mineral resource estimate can be prepared in accordance with National Instrument 43-101.

Approximately 50 additional samples are currently being processed by ODM, and further SGS batches from RC concentrate work are pending or in progress. The Company will provide further updates as material results are received and the sonic sampling program is finalized.