Mr. Stephen Goodman reports

BAHIA METALS TECHNICAL REVIEW REINFORCES THE POTENTIAL OF THE MANGUEIROS MAIN PROJECT

Bahia Metals Corp. has provided an update on its corporate strategy and continuing technical review of the Mangueiros Main nickel-copper-cobalt-platinum-group-metal project and regional exploration projects in Bahia state, Brazil.

The review has reinforced management's view that the Mangueiros Main project possesses many of the characteristics associated with a development-stage nickel sulphide asset, including significant scale potential, extensive historical drilling, encouraging preliminary metallurgical results and access to established infrastructure within one of Brazil's premier mining regions.

The company's flagship asset, Mangueiros Main, is a technically well-understood, sulphide-hosted nickel-copper-cobalt-PGM project with an exploration target of 75 million to 200 million tonnes of 0.20 per cent to 0.25 per cent NiS with the potential to emerge as a strategic, long-life source of critical minerals. It is located in Bahia state, Brazil, a well-established mining jurisdiction with infrastructure, supportive regulatory frameworks and a strong mining tradition. This combination positions Mangueiros to contribute to future supply chains supporting electrification and energy transition technologies.

Stephen Goodman, chief executive officer and director of Bahia Metals, commented: "Mangueiros Main represents a strong critical minerals exploration opportunity. As stated, our objective is to efficiently unlock the potential of Mangueiros Main through resource definition and economic evaluation.

"Mangueiros Main benefits from a substantial technical foundation, including extensive drilling, geophysical surveys and encouraging preliminary metallurgical work. As we continue our review, we believe Mangueiros Main is emerging as a compelling nickel sulphide opportunity in a jurisdiction that is attracting global investment in critical minerals.

"Beyond Mangueiros Main, we see meaningful growth potential across our broader asset portfolio. Mangueiros West, located just one km away, is emerging as a compelling follow-up opportunity and is expected to be a key focus as we continue advancing the district.

"The company is focused on creating long-term shareholder value through disciplined technical advancement of its assets."

Mangueiros Main and district investment highlights:

• 100-per-cent-owned sulphide nickel-copper-cobalt-PGM project in Bahia state, Brazil;
• Extensive technical database including 86 drill holes totalling 12,786 metres;
• At Mangueiros Main:
  • Mineralization defined over approximately two-kilometre strike length;
  • Shallow mineralization beginning at surface;
  • Exploration target of 75 million to 200 million tonnes grading 0.20 per cent to 0.25 per cent NiS at Mangueiros Main;
  • Positive preliminary metallurgical testing and further studies warranted;
  • Potential pathway toward an initial National Instrument 43-101 mineral resource estimate and preliminary economic assessment.
• District-scale upside at Mangueiros West and Lagoa da Onca

Mangueiros Main: the foundation of a future critical mineral hub in Bahia state

Mangueiros Main represents the company's flagship asset and is the most advanced target. It serves as the cornerstone asset within what management believes could evolve into a broader district-scale nickel camp.

Drilling at Mangueiros Main has confirmed a broad, continuous zone of nickel-copper-cobalt sulphide mineralization extending across a footprint measuring at least 2,000 metres in strike length and approximately 500 metres in width. Importantly, mineralization begins at surface, a characteristic that may support favourable future development scenarios.

The company benefits from an extensive technical database that includes approximately 12,786 metres of diamond drilling in 86 holes across the projects, including 10,005 metres of drilling at the Mangueiros Main and adjacent targets, and includes multiple geophysical data sets.

This technical foundation allows the company to rapidly transition from exploration toward resource definition and project advancement.

Technically well-understood asset:

• Drilling at Mangueiros Main confirmed a shallow, laterally continuous and predictable mineralized system.

Potential scale:

• Mineralization defined over approximately 2.0-kilometre strike length, widths up to 500 metres and depths of up to 300 metres.

Defined exploration target*:

• 75 million to 200 million tonnes grading 0.20 per cent to 0.25 per cent NiS, as outlined in the company's National Instrument 43-101 technical report prepared by SRK Consulting.

* The potential quantity and grade are conceptual in nature. There has been insufficient analysis of existing exploration data to define a mineral resource, and it is uncertain if such analysis of existing data or further exploration will result in the target being delineated as a mineral resource. The potential quantity and grade are based on existing historical data as described above.

The sulphide nature of the mineralization is particularly important as it is typically associated with conventional processing routes and lower carbon intensity relative to laterite deposits, reinforcing the project's alignment with evolving environmental, social and governance and downstream supply chain requirements.

Preliminary metallurgical work on mineralization at the Mangueiros Main target was completed in 20231. Four individual metallurgical samples of approximately 33 kilograms each were collected from drill core crushed rejects (three millimetres) from eight drill holes and were composited. Results of the test procedure demonstrated encouraging recoveries for nickel, with NiS recovery from 81.2 per cent to 91.5 per cent for blebs sample and 79.7 per cent to 81.9 per cent for disseminated samples. The SRK technical report recommends additional metallurgical testing to expand and refine nickel recoveries and greater visibility into recoveries for other metals.

Mangueiros West highlights

The company is advancing its high-priority target at Mangueiros West, approximately one km from Mangueiros Main.

• Geophysical signature comparable in scale and intensity with Mangueiros Main;
• Encouraging intercepts of sulphide nickel-copper-cobalt mineralization.

This supports Bahia's view that there is potential of a district-scale mineral system.

Corporate strategy and development road map:

• Advance Mangueiros Main through key technical milestones designed to enhance the project's understanding and support future development decisions.

Subject to the results of the continuing technical review and available financing, the company's current objectives include:

• Advancing work toward an initial National Instrument 43-101 mineral resource estimate for Mangueiros Main;
• Continuing technical evaluation of the Mangueiros West, Lagoa da Onca and Lagoa da Onca North targets to assess their contribution to the broader district-scale potential of the projects;
• Advancing metallurgical, geological and engineering studies to support future technical decision making;
• If these steps prove successful, evaluate the potential scope and timing of a NI 43-101 preliminary economic assessment.

Sampling, quality assurance/quality control and analytical procedures

Bahia Nickel Mineracao drill core (HQ -- 63.5 millimetres) was recovered, and quick logged, sealed and transported to the core facility located in the city of Campo Alegre de Lourdes where geologists and technicians would inspect and sign off on the delivered core. Drill core was then logged and marked up for sampling based on geological features and sulphide concentration, and a centre line was established prior to cutting. Drill cores were sawn in half, with one-half remaining in the core box and the other half secured into new plastic sample bags with unique sample number tickets. Samples where packed into PVC bags (no more than five per bag) and were dispatched to the laboratory by a nationally recognized courier service every two weeks during the drill campaign. All reported samples were prepared at the ALS preparation facility located in Vespasiano, MG, Brazil, and shipped to the ALS laboratory in Callao, Peru, for analysis. Samples were oven dried, crushed to 70 per cent passing two mm and then pulverized to grind size of 85 per cent passing 75 microns. Method ALS Code NI-ICP05 was utilized for nickel analysis, and multianalysis digestion (ALS Code ME-ICP61) was used for the other elements with ICP-AES finish, providing total nickel content. Platinum, palladium and gold were analyzed by fire assay with ICP-AES finish (ALS Code PGM-ICP23). QA/QC procedures for the drill program include the insertion of certificated standards, blanks and laboratory duplicates per batch (one batch contained only one drill hole). All QA/QC control samples returned values within acceptable limits.

The ALS preparation facilities and assay laboratories are independent. ALS assay laboratories are ISO 17025 accredited. All ALS South American sample preparation facilities are included in the scope of the ISO audit for the Lima assay laboratory and thus are also ISO 17025 accredited.

Amendment of warrant terms

The company has approved an amendment to the expiry date of 2,445,000 previously issued share purchase warrants. The warrants, which are currently scheduled to expire on Sept. 19, 2026, will expire on April 3, 2027. All other terms of the warrants, including the exercise price of 50 cents per share, remain unchanged.

Holders of the warrants are advised that replacement warrant certificates will not be issued, and this news release constitutes notice of the amendment. The company will file a Form 13 (Notice of Amendment of Warrant Terms) with the Canadian Securities Exchange in connection with the amendment.

Qualified person and NI 43-101 disclosure

Technical information in this news release is derived from the independent report entitled "NI 43-101 Technical Report -- Project Status Report Mangueiros Ni-Cu-Co Project, Bahia, Brazil," dated Jan. 6, 2026 (effective Nov. 15, 2024), prepared by Douglas Reid, PEng, of SRK Consulting, available on SEDAR+.

The scientific and technical information in this press release has been reviewed and approved by Paul Sarjeant, PGeo (Ontario), who is a qualified person as defined by National Instrument 43-101. Mr. Sarjeant is independent of Bahia.

About Bahia Metals Corp.

Bahia Metals is a Canadian mineral exploration and development company focused on advancing the company's flagship asset Mangueiros Main, a nickel-copper-cobalt-PGM sulphide asset.

The company completed its initial public offering in January, 2026, raising gross proceeds of $5.75-million, and secured a 100-per-cent interest in the Mangueiros Main nickel-copper-cobalt-PGM project and regional exploration projects, which was originally advanced by parties affiliated with Appian Capital Advisory Ltd.

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