Mr. Jason Bahnsen reports

HAPPY CREEK PROVIDES CORPORATE UPDATE

Happy Creek Minerals Ltd. has provided a corporate update.

Retirement of CFO (chief financial officer)/appointment of new CFO

Richard Lee, CPA, CMA, is retiring and has stepped down as CFO and corporate secretary of Happy Creek, effective immediately. The company thanks Mr. Lee for his over 15 years of service and wishes him well in his retirement.

The company welcomes Mathew Lee, CPA, CA, of Manning Lee Management Inc. as new CFO and corporate secretary of Happy Creek, effective immediately.

Extension to Highland Valley sale agreement terms

The company has agreed with Metal Energy Corp. to amend the terms of the asset purchase agreement for the sale of the Highland Valley project.

The amendment, dated Aug. 27, 2025, provides a nine-month extension to milestone payments and financing obligations included in the underlying asset purchase agreements (see Happy Creek news releases dated Oct. 4, 2024, for details).

The updated terms under the amendment include:

1. 1) Extension of $6-million of milestone equity payments as follows (based on a closing date of Nov. 6, 2024):
   1. Aug. 6, 2026, Metal Energy to issue $1.0-million in shares to Happy Creek;
   2. Aug. 6, 2027, Metal Energy to issue $1.0-million in shares to Happy Creek;
   3. Aug. 6, 2028, Metal Energy to issue $1.5-million in shares to Happy Creek;
   4. Aug. 6, 2029, Metal Energy to issue $2.5-million in shares to Happy Creek.
2. Extension of financing obligations (based on a closing date of Nov. 6, 2024):
   1. Metal Energy must complete an equity financing, raising a minimum of $1.5-million, by Aug. 6, 2026.

In consideration for entering in the amendment, Metal Energy will make a cash payment of $25,000 to Happy Creek within five days of Metals Energy completing its next financing and will issue Happy Creek with one million common shares, subject to TSX Venture Exchange approval.

Cariboo project royalty agreements

The net smelter return royalties (NSRs) over the company's Cariboo projects (Silverboss, Hen/Art/DL, Fox) held by the original prospectors of the mineral tenements has been purchased by unrelated third parties to the company.

On Oct. 1, 2025, the company entered into an agreement with the royalty buyers that confirms the ownership of a 2.5-per-cent NSR over the original Cariboo project mineral claims (original 20,000 hectares of Cariboo project mineral claims acquired by Happy Creek in 2005) and extinguishes the preexisting right the company had to buy down 1 per cent of the Cariboo property NSR by making a payment of $2-million to the NSR holders (Happy Creek buydown rights).

In consideration for extinguishing the Happy Creek buydown rights, Happy Creek received a cash payment of $25,000 from the Cariboo royalty buyers.

Issuance of corporate options

The company announces the granting of 4.7 million incentive stock options, pursuant to its stock option plan, and subject to TSX-V approval, to directors, officers and consultants of the company. Each option is exercisable to purchase one common share of the company at a price of 13 cents per share for a term of five years. All options vest upon grant.

About Happy Creek Minerals Ltd.

Happy Creek is focused on making new discoveries and building resources in proximity to infrastructure on the company's 100-per-cent-owned portfolio of diversified metals projects in British Columbia.

Projects include the high-grade Fox tungsten deposit, the Silverboss molybdenum-copper-gold-silver project adjacent to Glencore's closed Boss Mountain molybdenum mine, and the adjacent Hen-Art-DL gold and silver project.

On Nov. 7, 2024, Happy Creek announced the closing of the sale of the Highland Valley copper project to Metal Energy Corp. Happy Creek holds 9.9 per cent of Metal Energy issued capital and up to a 2.5-per-cent net smelter return royalty on the Highland Valley mineral claims.

Happy Creek is committed to responsible mineral resource development. The company's priority is to build and sustain mutually beneficial relationships with indigenous communities in the territories in which the company explores.

We seek Safe Harbor.