Mr. Joel Ferari reports

BRASNOVA ENERGY MATERIALS INC. MODIFIED OPTION ON FIVE GOLD PROJECTS CREATING A DISTRICT SCALE GOLD PORTFOLIO IN THE BAHIA GOLD BELT OF BRAZIL

Further to the news release of Jan. 19, 2026, Brasnova Energy Materials Inc. has executed a modified binding agreement with BGC Gold Inc., dated Aug. 27, 2026, to acquire, subject to the terms and conditions of the modified option agreement, a 50-per-cent interest in five gold projects though earned equity ownership in the Brazilian subsidiary of BGC.

In addition to the original Capela gold project, the four additional gold projects are also hosted in the Bahia gold belt in Brazil as are both Pan American Silver's Jacobina gold mining complex and Equinox Gold's Santa Luz complex. The updated portfolio now spans 17,457.20 hectares.

Under the terms, BGC grants to Brasnova the option to acquire a 50-per-cent equity interest in the five gold projects by expending $1-million over a period of 24 months from the execution date of the modified option agreement. This amount includes the amounts already expended on the Capela gold project by Brasnova, and all work expenditures and the holding fees due on the gold projects. Upon Brasnova having exercised the option, BGC will transfer to Brasnova the 50-per-cent equity ownership of the Brazilian subsidiary of BGC.

We seek Safe Harbor.