Mr. Mark Tommasi reports

CANARY GOLD ISSUES SHARES PURSUANT TO AGREEMENT TO ACQUIRE PROPERTY AT MADEIRA RIVER, RONDONIA, BRAZIL

In connection with the previously announced purchase agreement between Canary Gold Corp. and Talisman Venture Partners Ltd. dated Aug. 29, 2025, the company has issued a further 1.5 million common shares in its capital at a price of 30 cents per share, representing the final payment of $450,000 required under the agreement.

Pursuant to the agreement, as previously disclosed in the news release dated Aug. 29, 2025, the company acquired a 100-per-cent interest in 10 mineral tenements totaling approximately 94,700 hectares located in the state of Rondonia, Brazil, for total consideration of $1.7-million, satisfied through a combination of cash and shares as follows:

• A cash payment of $50,000 on execution of the definitive agreement (paid);
• The issuance of four million common shares of Canary Gold at a deemed price of 30 cents per share (for a deemed consideration of $1.2-million) on execution of the definitive agreement (issued on Aug. 29, 2025);
• On the date that is 180 days following the execution of the definitive agreement, at the election of Canary Gold, in its sole discretion, either: (a) a further cash payment of $450,000; or (b) the issuance of $450,000 worth of common shares, each share to be issued at a price equal to the higher of (x) 30 cents or (y) the volume weighted average price of the company's common shares on the Canadian Securities Exchange for the 10 trading days preceding the final payment date.

As part of the transaction, Talisman retained a 1.0-per-cent net smelter return (NSR) royalty on all commercial mineral production from the property, one-half of which (reducing the NSR to 0.5 per cent) may be purchased by Canary Gold at any time for $1-million.

The shares issued are subject to a four-month hold period expiring June 26, 2026.

About Canary Gold Corp.

Canary Gold is a Canadian public exploration company focused on the acquisition and advancement 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, Canary further expanded 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 has been satisfied through staged cash and share payments.

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.