Mr. Ryan Kalt reports

DIXIE GOLD INC. READIES FOR A TIGHTENING COPPER ENVIRONMENT WITH THE SOO EAST COPPER PROJECT, DIVESTS INTEREST IN PRESTON JV

Dixie Gold Inc. has provided an update on recent developments to its exploration portfolio.

Soo East copper project acquisition

Dixie Gold is pleased to report that it has acquired the Soo East copper project. The issuer's new copper exploration project is situated directionally northeast of Sault Ste. Marie, Ont., and, at its formation, comprises a total of 137 mining claims across two subproject areas covering approximately 3,013 hectares (7,445 acres) in the aggregate (as measured by QGIS).

The issuer acquired the project's mining claims through staking and paid the applicable Crown fees to the government of Ontario, leveraging on-hand working capital to do so.

Acquisition of the project was informed by a recent high-grade copper discovery drill intercept at a regionally proximate third party project, which has subsequently also received market support (see news releases by Sterling Metals Corp., "Sterling Metals Announces High-Grade Copper Discovery at the Soo Copper Project Intersecting 262.5m of 1.05% CuEq, Including 68.3m of 3.25% CuEq and 9.3m of 19.8% CuEq from Near Surface," dated Sept. 29, 2025, and "Sterling Metals Announces Fully Allocated Private Placement Of Units And Charity Flow Through Units," dated Nov. 5, 2025).

The Soo East copper project was acquired on a royalty-free basis (save Crown obligations) providing the issuer with project-level flexibility.

Dixie Gold is pleased to have added optionality for copper exploration to its portfolio, including in forward consideration as a higher working interest, critical mineral alternative to a divestment discussed below.

Preston Lake joint venture divestment

The issuer also reports that it has divested the balance of its small non-operated minority interest in the Preston Lake uranium JV by way of the execution of an arm's-length purchase-and-sale agreement dated Oct. 31, 2025, with Orano Canada Inc. and Skyharbour Resources Ltd., for which it received aggregate proceeds of $100,000. The Preston minority interest disposition has also eliminated all project-related liabilities for the issuer.

During the issuer's concluded involvement in the Preston Lake area of Saskatchewan (including with those claims associated with the Preston JV), the issuer is grateful to have participated in and/or received exploration exposure to more than $10-million of expenditures (most of which was third party financed). The uranium focus of the Preston JV was not a commodity of forward focus for Dixie Gold, and the issuer expected future exploration spending levels at the project as likely being beyond its financing capacity given its market-traded capitalization. As such, the corporation anticipated its disposed interest to dissolve on a near-term basis (without value) but for material issuer-level dilution, if market available to finance prospective capital calls at the project in 2026 and beyond. Resultantly, Dixie Gold was pleased to have monetized its interest to trusted parties (which held first refusal rights) through the above referenced arm's-length transaction while that interest held remnant value (see also news releases by the issuer dated June 25, 2025).

The corporation wishes exploration success to the continuing parties and expresses appreciation to each of Orano Canada Inc. and Skyharbour Resources Ltd. for their collaboration with the issuer over the past number of years.

Disclaimer regarding third party news releases

The issuer is not responsible for the content, technical or otherwise, of any third party news releases.

Disclaimer regarding adjacent projects

The issuer cautions that past results or discoveries on proximate or adjacent projects are not necessarily indicative of the results that may be achieved on projects or project interests held or operated by the issuer.

Qualified person

Antonio Carteri, PGeo, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this news release. Mr. Carteri is an independent consultant to the issuer.

About Dixie Gold Inc.

Dixie Gold is a publicly traded junior exploration company holding a portfolio of mining-related interests in Canada.

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