Canary Gold Corp. Receives Positive Heavy-Mineral Results Supporting Gold Potential in Brazil's Madeira River Basin

Canary Gold Corp. has announced encouraging results from heavy-mineral analyses completed by Overburden Drilling Management Ltd (ODM), a globally recognized Canadian laboratory specializing in heavy-mineral concentrate evaluation. The findings significantly strengthen the company's geological thesis that gold-bearing sediments, originating from erosion of the Andes Mountains, have accumulated within the Madeira River basin in Rondonia, Brazil, over extended periods. This supports the potential for sediment-hosted and paleoplacer gold systems across Canary's expanding land position.

ODM Ltd confirmed strong heavy-mineral assemblages consistent with gold-bearing alluvial and paleoplacer environments in samples submitted from Canary Gold's Madeira River Project Area. The results reinforce prior work, including the visible gold recovered in panned samples from reconnaissance air-core drilling initially announced in April 2025. These findings align with data from the sonic drilling program mobilized in June 2025 to capture continuous sediment profiles for detailed analysis.

The technical evaluation revealed that the iron-cemented gravel, known as mocururu, represents a very mature, heavy-mineral-enriched placer type with pebble varieties supporting interpretation that the gravel is sourced primarily from the Andes, a known gold-endowed area that the Madeira River drains. According to the ODM report, the modern gold placers of the Madeira River are presumed to be second-generation placers produced by erosion of these placer gravels along the river course and re-concentration of their thus liberated gold in favorable traps along the riverbed.

ODM's investigation identified visible gold particles in a mocururu sample from sonic drill hole SN-007 and from two outcrop mocururu samples collected within Canary Gold's tenement holdings. The company's field team has systematically continued with concentration through mechanical centrifuge and manual panning of samples collected from first pass air-core drilling and mocururu outcrops. Visible gold was also identified in pan concentrates of seven samples from three air-core drill holes (AC-001, AC-003 and AC-004).

These findings support the interpretation that the Madeira River basin has acted as a long-term collector of gold-rich sediment, consistent with its historic reputation as one of Brazil's most productive alluvial gold regions. The ODM results integrate directly with several key milestones previously reported by the company, including visible gold recovery in April 2025, sonic drill mobilization in June 2025, and tenement expansion in August 2025 that significantly grew the company's exploration footprint along the Madeira River.

Mark Tommasi, President of Canary Gold, stated that ODM's results provide independent confirmation that reconnaissance sampling successfully identified the presence of targeted sediments hosting gold occurrences across multiple tenements. These findings validate the exploration model and support the view that the mocururu horizon represents encouraging evidence of a gold-endowed system worthy of systematic drill testing. Importantly, to date the company has tested only roughly 2% of its extensive tenement package with reconnaissance drilling, underscoring the enormous scalability and district-wide potential of the project.

The company will integrate ODM's data into its regional exploration model to refine target prioritization ahead of the upcoming tenement-wide drilling campaign. Next steps include integrating ODM mineralogical data with geochemical, stratigraphic, and geophysical datasets, undertaking additional sampling via surface occurrence sampling and drilling beneath shallow cover, and advancing screw-auger and air-core drilling plans for high priority mocururu targets.

For additional information about the company's activities, visit https://www.canarygold.ca. 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.