Mr. Tim Barry reports

ARRAS MINERALS CLOSES UPSIZED $25 MILLION BOUGHT DEAL FINANCING

Arras Minerals Corp. has closed its previously announced bought deal financing of 18,382,175 common shares of the company at a price of $1.36 per common share for aggregate gross proceeds to the company of approximately $25-million, which includes the full exercise of the underwriters' option. The offering was completed through a syndicate of underwriters led by Haywood Securities Inc. and including SCP Resource Finance LP, Canaccord Genuity Corp., and Hannam & Partners.

The company intends to use the net proceeds of the offering to finance exploration and development activities at the company's properties in Kazakhstan as well as for working capital and general corporate purposes, all as described in the company's amended and restated offering document dated June 16, 2026.

The common shares issued under the offering were offered to purchasers resident in all the provinces of Canada, except Quebec, pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended and supplemented by Coordinated Blanket Order 45-935, Exemptions from Certain Conditions of the Listed Issuer Financing Exemption. The common shares issued under the listed issuer financing exemption are not subject to a statutory hold period pursuant to applicable Canadian securities laws; however, common shares issued to insiders under the offering may be subject to a four-month resale restriction imposed under the policies of the TSX Venture Exchange. In connection with the offering, the underwriters received an aggregate cash commission equal to 6.0 per cent of the gross proceeds from the sale of the common shares.

Certain insiders of the company participated in the offering, acquiring an aggregate of 2.75 million common shares. The issuance of common shares to such insiders is considered to be a related party transaction within the meaning of TSX-V Policy 5.9 and Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is exempt from the requirements to obtain a formal valuation and minority shareholder approval in connection with the insiders' participation in the offering in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of the offering nor the securities issued in connection therewith, insofar as the offering involves the insiders, exceeds 25 per cent of the company's market capitalization. The company did not file a material change report more than 21 days before the expected closing of the offering as the details of the offering and the participation therein by the insiders were not settled until recently and the company wished to close on an expedited basis for sound business reasons.

About Arras Minerals Corp.

Arras is a Canadian exploration and development company advancing a portfolio of copper and gold assets in northeastern Kazakhstan, including the Elemes copper-gold porphyry project, where initial drill results in 2025 identified porphyry-style mineralization across a 10-kilometre line of strike. The company has established one of the largest land packages in the country prospective for copper and gold. The company's shares are listed on the TSX-V under the trading symbol ARK and on the OTCQB under the trading symbol ARRKF.

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