Mr. Brian Kiernan reports

DFR GOLD INC. ANNOUNCES FUNDING AND UPDATES ON CASCADES FEASIBILITY STUDY

DFR Gold Inc. has entered into new loan agreements with shareholders Spirit Resources SARL and Brian Kiernan to raise $1.2-million (U.S.), to be used inter alia to continue the feasibility study at Cascades, as announced by the company on Aug. 5, 2025, and for general working capital purposes.

Funding

The company entered into agreements with insiders Spirit, whose beneficial owner is Jean-Raymond Boulle, and, Kiernan, holding respectively 39.9 per cent and 37.6 per cent of the company's outstanding and issued share capital, to provide term loan facilities of $600,000 (U.S.) each, in aggregate $1.2-million (U.S.), to the company. The terms of the loan are summarized as follows:

• Spirit and Kiernan shall provide loans of $600,000 (U.S.) each;
• $500,000 of the loan is available at short notice to progress the feasibility study at Cascades and for working capital requirements;
• The loan is unsecured, bears interest at the rate of 8 per cent per annum and is available in multiple drawdowns from each of Spirit and Kiernan;
• The loan is repayable in full on or before June 30, 2026;
• If the company obtains funding before the repayment date, after paying any loans in existence prior to the loan, the company is required to repay the loan or part thereof.

Assuming full drawdown of the loan, the company will have accumulated $2.25-million in loan capital (excluding interest) payable to each of Kiernan and Spirit, or $4.5-million in aggregate, with a maturity date of June 30, 2026. See the company's press release dated Aug. 5, 2025, for more information.

This financing constitutes a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The financing is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority shareholder approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(f) of MI 61-101. The company is pursuing further financings, required for drilling and working capital.

Updates on the feasibility study at Cascades

DFR started a feasibility study at Cascades during the second semester of 2025, with the immediate objective of defining reserves to support an initial five-year production plan at an average targeted output of between 20,000 to 30,000 oz per annum (the production target). The company intends to start reserve definition drilling at Daramandougou Western zone during the course of the second quarter of 2026, and is in the meantime:

• Continuing progress on the environmental and social impact assessments (ESIA);
• Performing metallurgical testwork on samples from artisanal adits at Western zone;
• Progressing delineation of the reserve definition drilling program.

Commenting on the financing and feasibility study, Brian Kiernan, chief executive officer and president, said:

"During the past months we have reassessed our short to medium term priorities, continued to minimize cash burn on overheads and accelerated the move toward production whilst keeping in sight our long-term objective of a multimillion-ounce resource at Cascades. With the progress on the feasibility study and the work accomplished since acquiring the Cascades project, DFR is in a strong position to tap into the favourable gold market."

Approval of disclosure of technical information

Kieran Harrington, PGeo, EurGeol, vice-president of exploration of DFR Gold, and a qualified person as defined under Canadian National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has reviewed and approved the technical information contained in this report.

About DFR Gold Inc.

DFR Gold is a TSX Venture Exchange-listed exploration and mine development company focused on gold in West Africa. DFR Gold holds interests in a portfolio of West African gold exploration projects including the highly prospective Cascades gold project in Burkina Faso. Cascades has a mineral resource prepared in accordance with National Instrument 43-101 comprising 5.41 million tonnes of indicated resources at an average grade of 1.52 grams per tonne Au for a total 264,000 ounces of gold and 6.93 million tonnes of inferred resources at an average grade 1.67 g/t Au for a total of 371,000 ounces of gold. Please see the company's technical report titled "Amended and Re-stated Technical Report on the Labola Project Burkina Faso" dated April 2, 2022, with an effective date of April 20, 2022, for further information regarding Cascades. This report can be located at the DFR website. DFR entered into definitive agreements with Panthera Resources PLC in September, 2021, pursuant to which DFR acquired an 80-per-cent interest in the Cascades project and Panthera will own a carried 20-per-cent interest in Cascades on the condition that DFR invests $18-million (U.S.) (the deemed cost base) in the project by Sept. 30, 2026. Panthera shall have the right to acquire an additional 10-per-cent interest in Cascades by making a payment of $7.2-million (U.S.) (or lower if DFR does not spend $18-million (U.S.)) following the trigger date (being the earlier of DFR achieving the deemed cost base and Sept. 30, 2026). Thereafter, all interests shall be participating.

DFR Gold holds 51-per-cent interest in Gurara Holdings Ltd. which holds mineral licences in Nigeria through its Nigerian subsidiaries (the Gurara project). The Gurara project is a prospective frontier stage gold project in a geologically attractive but underexplored area of Nigeria, comprising four licences in two project areas (Dagma and Paimasa) in Western Nigeria. The Gurara project lies within the gold-bearing (Schist belt) terrain of the Benin-Nigeria Shield where historically very little systematic exploration has been undertaken, and which has broad similarities to the Birimian of the Man Shield of West Africa. At Dagma a quartz vein swarm has been identified and a bulk sample of vein quartz gave an average assay of 22.2 grams per tonne gold.

In Madagascar, DFR Gold fully owns a mineral licence for an advanced high-grade hard rock zircon project located in the west of the country, approximately 220 kilometres east of the port of Maintirano and close to a state road (the Beravina project). The company filed a National Instrument 43-101-compliant technical report for the Beravina project on Jan. 29, 2019, reporting an inferred mineral resource estimate of 1.5 million tonnes grading 22.7 per cent zircon (ZrSiO4) (equivalent to 15.3 per cent ZrO2).

We seek Safe Harbor.