Mr. Nicholas Koo reports

DIXIE GOLD INC. DISCONTINUES FINANCING

Dixie Gold Inc. has discontinued the non-brokered common share unit financing that it previously announced on May 7, 2026.

Subsequent to its original announcement, the market price for the issuer's listed security has market-traded to a level which is materially lower, including on a percentage basis, than the terms of the then-proposed financing. As a public entity, the issuer's access to and terms for equity capital are set in the context of the public capital market and by its host exchange.

Beyond market conditions, the issuer notes that the exchange on which the issuer is currently listed prohibits unrestricted-use financings below certain share price minimums, being, for reference, the original price level of the now discontinued financing (see also Policy 4.1 of the issuer's host exchange).

As general information, the issuer also notes that its host exchange precludes certain parties (such as shareholders who may hold a 10-plus-per-cent interests) from participating in any restricted-use financings (that is, financings set below prescribed share price minimums).

The corporation has previously reported on matters that impact and/or may impact its operations (see also issuer news release in 2026, including, without limitation, those various press releases disseminated by the issuer on Jan. 26, 2026, and March 20, 2026). At the present time, the issuer has not identified a replacement candidate(s) for the officer vacancy detailed by news release dated March 20, 2026.

The corporation will require additional working capital to remain a going concern.

About Dixie Gold Inc.

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

We seek Safe Harbor.