Mr. Daniel Henao of Sun Valley reports

SUN VALLEY INVESTMENTS AG ANNOUNCES ACQUISITION OF SECURITIES OF CANAGOLD RESOURCES INC.

Sun Valley Investments AG, a private equity firm, has acquired 15.7 million common shares of the company, which are designated as flow-through common shares of the company for the purposes of the Income Tax Act (Canada) at a price of 26.25 cents per share, as a back-end purchaser pursuant to a non-brokered private placement of charity flow-through shares for a total subscription price of $4,121,250. The private placement closed on March 28, 2024.

Immediately prior to the private placement, the acquiror owned and/or had control over an aggregate of 68,338,133 common shares, representing approximately 43.28 per cent of the issued and outstanding common shares of the company on an undiluted basis. Following completion of the private placement, the acquiror owns and/or has control over an aggregate of 84,038,133 common shares, representing approximately 48.41 per cent of the issued and outstanding common shares on an undiluted basis. The private placement resulted in an approximate 5.13-per-cent change in the acquiror's ownership and control over common shares of the company.

The acquiror has acquired the shares for investment purposes under an exemption provided under National Instrument 45-106 (Prospectus Exemptions). In the future, the acquiror may, depending on market and other conditions, increase or decrease its ownership of the company's securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities.

The acquiror will file an early warning report in accordance with applicable securities laws, which will be available under Canagold's profile on SEDAR+.