Mr. Ryan Kalt reports

DIXIE GOLD INC. LEVERAGES RECENT DIVESTMENT PROCEEDS TO MORE THAN DOUBLE THE SCALE OF ITS SOO EAST COPPER PROJECT

Dixie Gold Inc. has leveraged recent divestment proceeds (see issuer news release dated Nov. 6, 2025) to expand its presence in an emerging copper exploration camp near Sault Ste. Marie, Ont., with the result being significant growth in the corporation's claim position in the area, as consolidated within its Soo East copper project.

Soo East copper project -- project expansion

Dixie Gold's executive management team undertook internally led efforts to more than double the scale of the issuer's Soo East copper project. The project is situated directionally northeast of Sault Ste. Marie. The issuer acquired the project's additional mining claims through staking and has paid the applicable Crown fees to the government of Ontario.

As a result, Dixie Gold's Soo East copper project has expanded from 137 mining claims covering approximately 3,013 hectares to 316 mining claims covering approximately 6,948 hectares (hectare totals as measured by QGIS).

The expansion claims for the issuer's Soo East copper project were acquired on a royalty-free basis (save Crown obligations), providing the issuer with additional project-level flexibility.

Dixie Gold is in the process of working on completing applicable surface right notices related to the expansion area, which is customary for the acquisition method.

The issuer notes that QCX Gold Corp. has closed its acquisition of various mining claims adjacent and regionally proximate to Dixie Gold's Soo East copper project with QCX Gold paying more than $1.5-million of immediate market consideration for its acquisition of the same (see QCX Gold news release, QCX Gold completes acquisition, dated Nov. 7, 2025).

To the above, Dixie Gold views such acquisition terms to secure a claim position in this emerging copper exploration camp as serving to highlight the extraordinary cost positioning that Dixie Gold's executive management achieved for the issuer's shareholders in assembling the Soo East copper project.

Dixie Gold's procurement of its initial project area (as announced by the issuer on Nov. 6, 2025) was informed by a high-grade copper discovery drill intercept at a regionally proximate third party project (see Sterling Metals Corp. news release, Sterling Metals announces high-grade copper discovery at the Soo copper project intersecting 262.5 m of 1.05% CuEq, including 68.3 m of 3.25% CuEq and 9.3 m of 19.8% CuEq from near surface, dated Sept. 29, 2025).

Subsequently, Sterling Metals has raised more than $14-million in a financing that closed in late November, 2025, to, among other things, advance its nearby Soo copper project (see Sterling Metals news release, Sterling Metals announces closing of private placement to accelerate advancement of the Soo copper project, dated Nov. 26, 2025), which the issuer sees as highlighting market interest in the region.

Soo East copper project -- project update

Since acquiring the original project position near Sault Ste. Marie, executive management of Dixie Gold has already begun certain work to internally develop project areas that may provide the Soo East copper project with prioritized exploration targets.

In this regard, certain research activities around the inaugural mining claim blocks of the Soo East copper project have been completed. Dixie Gold can confirm that, during a related-area copper staking rush in the early 1960s, which revolved around the Tribag copper discovery (later mined), then Falconbridge (which at the time was a base metal major in Canada) held claim rights to the area around Griffin Lake, which are now held by Dixie Gold. In the issuer's view, this serves to highlight the exploration potential involving significant portions of its Soo East copper project given that such area was of historic interest to a major (Falconbridge) for copper exploration.

Regarding the new mining claims covered by the expansion area, executive management of Dixie Gold has sourced certain historic exploration information through a legal prospectus filed by then Copper Reef Mines Ltd. with the Ontario Securities Commission as stamped Nov. 1, 1963. Within the Copper Reef prospectus and in Copper Reef discussing the presence of iron and copper, Copper Reef made reference to "quartz veins being common in the sediments in vicinity of granite intrusions" and noted, "One of the most promising of these veins occurs on an island in Moose Lake (now Quintet Lake)." The Quintet Lake copper showing area is covered by mining claims held by Dixie Gold, and the aforementioned showing is also recorded by way of the Ontario mineral record database as MDI41N01NE00035.

To help inform the issuer's next steps, the corporation is awaiting the market release of pending assays by Sterling Metals at its project, which have been publicly guided by it as expected to be released in the coming weeks (see Sterling Metals news release, Sterling Metals announces closing of private placement to accelerate advancement of the Soo copper project, dated Nov. 26, 2025).

Disclaimer regarding historic information

Information in this press release contains reference to historic materials which have not been independently field verified by the issuer or its qualified person, and, as such, readers should not place undue reliance thereon.

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 (such as the Soo copper project) are not necessarily indicative of the results that may be achieved on projects or project interests held or operated by the issuer (such as the Soo East copper project).

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.

We seek Safe Harbor.