Mr. Mark Tommasi reports

CANARY GOLD CORP. SIGNS DRILLING CONTRACT FOR MAJOR 20000M DRILL PROGRAM AT THE MADEIRA RIVER PROJECT, RONDONIA, BRAZIL

Canary Gold Corp. has signed a drilling services contract with Geosol and Geosedna, both wholly owned subsidiaries of Geopar, Brazil's largest and most established drilling services group. The contract initiates a substantial dual-focused drilling program across the company's extensive land package along the prospective Mocururu trend at its Madeira River project in Rondonia, Brazil.

This milestone follows the strong geological validation achieved during the company's first year of field exploration and builds on positive observations disclosed in last week's release summarizing heavy-mineral results from samples analyzed by Overburden Drilling Management Ltd. (ODM).

Highlights:

• Two concurrent drilling programs to commence:
  • Approximately 5,000 metres of screw-auger drilling (Geosol), a modified dry diamond technique designed to recover complete sample profiles through unconsolidated and consolidated sedimentary formations;
  • Approximately 15,000 metres of reverse circulation-aircore (RC-AC) drilling (Geosedna) to systematically evaluate the extensive concealed Mocururu search space.
• Screw-auger program will focus on known Mocururu outcrops and conduct short stepouts (25 to 50 metres (m)) to trace shallow extensions beneath cover;
• RC-AC program will test the full 80-kilometre (km) strike length of the prospective stratigraphy within Canary's tenements on a two km by one km drill-fence/grid configuration;
• Drilling represents the next major step toward defining the scale and continuity of the gold-bearing Mocururu and related secondary gold targets;
• Program follows positive ODM heavy-mineral observations reported last week, which further supported the company's geological model.

Technical overview of the drilling programs

Screw-auger (modified dry diamond) drilling -- Geosol (approximately 5,000 m)

The screw-auger technique provides high-quality, continuous and uncontaminated sampling across the stratigraphic package hosting the Mocururu sediments. This program will:

• Validate and expand upon known Mocururu outcrops;
• Trace lateral extensions beneath shallow cover;
• Utilize 25 to 50 m infill stepouts to map near-surface geometry of the target units, as well as geological controls, geometries and grade distribution of gold-bearing zones;
• Provide detailed lithological and geochemical context to refine the placement of subsequent exploration and evaluation phases.

Reverse circulation-aircore (RC-AC) drilling -- Geosedna (approximately 15,000 m)

The RC-AC program is designed to evaluate the broader, undercover potential of the sedimentary formation, of which the targeted gold-bearing Mocururu unit is part. Drilling will be completed on a systematic two km by one km grid covering approximately 80 kilometres of prospective strike defined by the initial exploration phases completed during 2025. This approach enables reconnaissance-scale interrogation of the prospective stratigraphy and efficient identification of the targeted Mocururu unit beneath cover.

Management commentary

Mark Tommasi, president of Canary Gold, commented:

"Securing Geosol and Geosedna, both part of Geopar, is a major operational milestone for Canary Gold. The scale and design of this program represent the most comprehensive subsurface evaluation undertaken by the company to date. With ODM's recent positive heavy-mineral results and a year of fieldwork that has consistently supported our geological thesis, the company is now in a strong position to rapidly accelerate its exploration strategy. The data generated from these drilling programs will be instrumental in defining the distribution, thickness and continuity of the gold-bearing Mocururu and related secondary targets across our dominant land position."

Mobilization will commence in early January with drilling to begin following site preparation, staging and land access.

Next steps:

• Mobilization of drill contractors and preparation of initial drill pads;
• Continuing integration of screw-auger and RC-AC results with geological mapping, geochemistry and heavy-mineral data sets;
• Target refinement and potential expansion of drilling depending on early results;
• Further updates will be provided as drilling progresses.

Qualified person statement (National Instrument 43-101)

The scientific and technical information contained in this news release has been reviewed and approved by Andrew Lee Smith, PGeo, executive director of Canary Gold, who is a qualified person as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Smith is not independent of the company, as he holds an executive and board position.

Data verification

In verifying the scientific and technical information disclosed herein, the qualified person has reviewed all available geological logs, field notes, sampling documentation, heavy-mineral concentrate reports, analytical certificates, laboratory procedures and other relevant technical records associated with the company's 2025 exploration program. Verification included assessment of sampling methods, chain-of-custody protocols, security of samples from collection through transport to the laboratory and a review of the analytical methods used by ODM, an independent Canadian laboratory specializing in heavy-mineral evaluation. Where applicable, drill core photographs, stratigraphic profiles and field observations were compared against laboratory findings to confirm consistency.

Limitations and stage of exploration

The information disclosed herein relates to early-stage exploration results, including heavy-mineral indicator mineral data, reconnaissance sampling and preliminary geological interpretations. Heavy-mineral analyses and field-based observations do not provide quantitative gold grades and cannot be used to estimate mineral resources. Additional drilling, systematic sampling and assay verification are required to determine the significance of the geological features described.

Visible gold caution

The qualified person notes that visible gold described in this release is a qualitative field observation only. Visible gold does not confirm grade, continuity or the presence of economic mineralization. Quantitative determination of gold content requires fire assay analysis and appropriate QA/QC (quality assurance/quality control) procedures. Early-stage occurrences of visible gold should not be interpreted as indicative of a mineral resource or economic viability.

Exploration target and geological interpretation caution

Any reference to potential mineralization, sediment-hosted or paleoplacer systems, or regional metal enrichment is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain whether further exploration will result in the delineation of a mineral resource. Geological models, including interpretations of the Mocururu horizon, sediment provenance, placer maturity and basin-scale transport mechanisms, are interpretive hypotheses based on limited data sets and should not be considered definitive.

Historical or third party information

Where the release refers to historical information, academic references or third party geological interpretations (including ODM's technical commentary), such data have not been independently verified by the qualified person and may not be representative of mineralization within Canary Gold's current tenement boundaries.

About Overburden Drilling Management Ltd.

ODM is a leading international laboratory domiciled in Canada specializing in heavy-mineral concentrate analysis and sediment provenance studies for mineral exploration programs worldwide.

About Canary Gold Corp.

Canary Gold is a Canadian public exploration company focused on the acquisition and development of gold projects in Brazil. The company holds an option to earn up to a 70-per-cent undivided interest in the Rio Madeira project through a series of staged exploration expenditures and milestone payments.

In August, 2025, the company further advanced its regional strategy by entering into a definitive agreement to acquire a 100-per-cent interest in 10 additional mineral tenements totalling approximately 94,700 hectares from Talisman Venture Partners Ltd., a private British Columbia corporation. The total consideration of $1.7-million is being satisfied through staged cash and share payments, a portion of which remains to be completed in accordance with the terms of the agreement. Talisman retains a 1.0-per-cent net smelter return (NSR) royalty on future production from the acquired tenements, one-half of which (reducing the NSR to 0.5 per cent) may be repurchased by the company at any time for $1.0-million.

Together, these interests provide Canary Gold with a dominant and strategically consolidated land position in the Madeira River region of Rondonia state -- one of Brazil's most prospective yet underexplored gold provinces.

We seek Safe Harbor.