Mr. Alfredo De Lucrezia reports

BONANZA MINING CORPORATION PROVIDES CORPORATE UPDATE

Bonanza Mining Corp. has provided an update.

Share consolidation

Bonanza is proceeding with a share consolidation on the basis of one postconsolidated share for every three preconsolidated shares, as originally announced by Bonanza in its Nov. 7, 2025, news release. The effective date of the consolidation will be confirmed at a future time, following Bonanza's receipt of acceptance from the TSX Venture Exchange for the consolidation. There will be no change in Bonanza's name or trading symbol in connection with the consolidation.

The principle effects of the consolidation would be that:

• The number of shares of Bonanza issued and outstanding would be reduced from 67,056,202 shares to approximately 22,352,067 shares.
• The exercise or conversion price and/or the number of shares issuable upon any of Bonanza's outstanding stock options and warrants would be proportionately adjusted after giving effect to the consolidation.

Corporate update

Bonanza is a mineral exploration company whose exploration properties are located in the province of British Columbia.

One of these properties is the MC property, located 12 kilometres north of the port of Stewart, B.C., in the Golden Triangle. The MC property and related claims encompass 1,680 hectares and adjoin the Premier mine property of Ascot Resources Ltd. Previous exploration work has identified significant gold, silver, lead, zinc and copper geochemical anomalies and mineral showings. Based on these anomalies and showings, several drill targets have been identified. For 2026 Bonanza's exploration plan is to have a program of approximately $1.5-million in the aggregate to drill the compelling IP (induced polarization) and soil geochemical anomalies identified on the MC property this summer.

Bonanza recently announced the acquisition of the Frog property for shares of the company as reported in the news release of Jan. 5, 2026, subject to TSX Venture Exchange acceptance. The Frog property is located 170 kilometres east of Dease Lake, B.C., and 70 kilometres southeast of the Kutcho Creek copper-zinc deposit. In the mid-1990s, a government high-level aeromagnetic survey was conducted, which identified a strong anomaly on the property which became the Frog property.

In 2022, a 3-D IP survey was completed on the Frog property, the interpretation of the results of which identified two high-amplitude near-surface chargeability anomalies. The anomalies are steeply dipping toward the south and are open to depth, and, although the IP survey was very successful and outlined these large IP anomalies and others within the soil anomalous area, no diamond drilling has been conducted to test the identified anomalies. The presence of a large hydrothermal system is also indicated, and further work needs to be completed to confirm if a suspected calc-alkalic porphyry copper system occurs on the Frog property, which is associated with the large airborne magnetic anomaly.

Also announced in Bonanza's Jan. 5, 2026, news release was the acquisition of the Shag property for shares of the company, subject again to TSX Venture Exchange acceptance.

On Jan. 27, 2026, Bonanza announced that it had completed a non-brokered private placement of 10 million units at a price of three cents per unit for gross proceeds of $300,000, with each unit consisting of one common share and one share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a price of five cents until Jan. 22, 2028. The use of proceeds is for general working capital purposes. This issuance strengthened the balance sheet of Bonanza.

Bonanza will continue to develop its current properties for the near term with emphasis on the MC property and latterly the Frog property. The company will also be attentive to new opportunities that present themselves to further the enhancement of shareholder value. The company has a strong and experienced board of directors that continue to support its activities.