Mr. Mark Trevisiol of McFarlane Lake reports

MCFARLANE LAKE ANNOUNCES COMPLETION OF STRATEGIC INVESTMENT IN IMETAL RESOURCES, INC.

McFarlane Lake Mining Ltd., further to its news release on Aug. 5, 2026, has completed its strategic investment in iMetal Resources Inc. Pursuant to the strategic investment, the company acquired 14,200,852 units of iMetal at a price of 10 cents per unit for an aggregate subscription price of $1,420,085. The company beneficially owns approximately 19.9 per cent of iMetal's issued and outstanding common shares. The strategic investment was completed pursuant to iMetal's previously announced non-brokered private placement consisting of up to 30 million units at a price of 10 cents per unit for aggregate gross proceeds of up to $3-million.

Under the terms of the strategic investment, each unit consists of one iMetal share and one common share purchase warrant of iMetal. Each iMetal warrant entitles the company to buy one iMetal share at an exercise price of 17.5 cents per iMetal share for a period of three years from the date of closing of the strategic investment. iMetal may accelerate the expiry date if the volume-weighted average trading price of the iMetal shares on the TSX Venture Exchange exceeds 40 cents for 20 consecutive trading days (subject to a beneficial ownership blocker), in accordance with the terms of the warrant certificate governing the iMetal warrants.

In connection with the strategic investment, the company and iMetal entered into an investor rights agreement. The investor rights agreement gives the company the right to, among other things, nominate one director to iMetal's board of directors, participate in future equity issuances of iMetal to maintain McFarlane's pro rata equity interest and, subject to the approval of the board of iMetal, provide certain technical oversight on exploration on iMetal's Gowganda property, on the terms set out in the investor rights agreement.

Early warning disclosure

The company makes the following announcement in accordance with National Instrument 62-103, The Early Warning System and Related Take-Over Bid and Insider Reporting Issues.

Prior to the strategic investment, the company did not beneficially own or exercise control or direction over, directly or indirectly, any securities of iMetal.

Pursuant to the strategic investment, the company acquired 14,200,852 iMetal shares and 14,200,852 iMetal warrants. Following the closing, the company beneficially owns and exercises control or direction over 14,200,852 iMetal shares, representing approximately 19.9 per cent of the issued and outstanding iMetal shares. Other than the iMetal warrants, which are exercisable to acquire an aggregate of 14,200,852 iMetal shares, the company does not beneficially own or exercise control or direction over any additional options, warrants or other securities convertible into or exchangeable for iMetal shares. Assuming the exercise in full of the iMetal warrants held by the company, the company would beneficially own and exercise control or direction over 28,401,704 iMetal shares, representing approximately 33.2 per cent of the issued and outstanding iMetal shares on a partially diluted basis.

The securities of iMetal were acquired by the company for investment purposes. Pursuant to the investor rights agreement, the company has the right to, among other things, nominate one director to iMetal's board of directors, participate in future equity issuances of iMetal to maintain the company's pro rata equity interest and, subject to the approval of the board of directors of iMetal, provide certain technical oversight in respect of exploration on iMetal's Gowganda property. In the future, the company may, from time to time, increase or decrease its ownership, control or direction over securities of iMetal through market transactions, private agreements or otherwise, depending on market conditions, the business and prospects of iMetal, and other relevant factors, and subject to the terms of the investor rights agreement.

A copy of the early warning report to be filed by the company in connection with the strategic investment may be obtained from the company using the contact information set out below and will be available under iMetal's profile on SEDAR+. The head office of iMetal is located at Suite 550, 800 West Pender St., Vancouver, B.C., V6C 2V6, and the head office of the company is located at 15 Kincora Crt., Sudbury, Ont., P3E 2B9.

About McFarlane Lake Mining Ltd.

McFarlane Lake Mining is a Canadian gold exploration company focused on advancing its flagship Juby gold project, located near Gowganda, Ont., within the established Abitibi greenstone belt. The Juby gold project hosts a current (effective Sept. 29, 2025) National Instrument 43-101-compliant (as defined hereafter) mineral resource estimate (MRE) of 1.01 million ounces of gold in the indicated category at an average grade of 0.98 gram per tonne (g/t) gold (31.74 million tonnes) and an additional 3.17 million ounces of gold in the inferred category at an average grade of 0.89 g/t gold (109.48 million tonnes). The estimate was calculated using a long-term gold price of $2,500 (U.S.) per ounce, applying cut-off grades of 0.25 g/t gold for open pit and 1.85 g/t gold for underground resources.

A sensitivity analysis completed at a higher gold price of $3,750 (U.S.) per ounce resulted in an indicated mineral resource of 1.20 million ounces grading 0.94 g/t gold (39.51 million tonnes) and an inferred mineral resource of 4.23 million ounces grading 0.85 g/t gold (154.50 million tonnes) applying cut-off grades of 0.25 g/t gold for open pit and 1.15 g/t gold for underground resources.

The independent MRE was prepared by BBA E&C Inc. in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects. The full technical report supporting the resource estimate was filed on SEDAR+ on Nov. 21, 2025, and is also available on the company's website.

McFarlane is actively executing an exploration drilling program and additional technical studies at the Juby project to further evaluate and advance this large-scale gold system.

In addition to Juby, McFarlane holds a portfolio of 100-per-cent-owned gold assets across Ontario, including the past-producing McMillan gold mine and Mongowin properties, located approximately 70 kilometres west of Sudbury and the Michaud/Munro properties, located 115 kilometres east of Timmins. McFarlane is a reporting issuer in Ontario, British Columbia and Alberta.

Qualified person

The scientific and technical information disclosed in this news release was reviewed and approved by Bob Kusins, PGeo, a consultant to the company and a qualified person as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects. The technical information was also reviewed by Mark Trevisiol, PEng, an officer of McFarlane and a qualified person under NI 43-101.

Advisers

Wildeboer Dellelce LLP acted as legal counsel for McFarlane. Cassels Brock & Blackwell LLP acted as legal counsel, and Integrity Capital Partners acted as financial adviser for iMetal.

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