Mr. Greg Isenor reports

KO GOLD COMMENCES DRILLING AT ITS SMYLERS GOLD PROJECT IN OTAGO, NEW ZEALAND

KO Gold Inc. has commenced drilling on its 100-per-cent-owned Smylers gold exploration permit (EP) in the Otago gold district, South Island, New Zealand. The Smylers EP drilling program is the first phase of an expanded 2026 drilling campaign that will subsequently extend to the company's Hyde, Glenpark and Carrick exploration permits.

Highlights:

• Reverse circulation (RC) and diamond drill holes (DDH) commenced on May 5, 2026, at the Smylers EP, located along the eastern extension of the Hyde-Macraes shear zone (HMSZ).
• Drilling at Smylers EP will step out from prior KO Gold drill holes completed in 2021 that returned impressive gold intersections and is designed to test continuity of mineralization along strike of the HMSZ. Drill holes have been designed to complement existing data and support potential resource estimation at Smylers EP.
• Concurrent soil geochemical sampling will be conducted during the Smylers EP drilling program to support continuing target generation across the permit.
• Drilling is being undertaken by Eco Drilling, an experienced New Zealand-based drilling contractor under a fully implemented health, safety and environmental management system.
• Initial assay results from the Smylers EP drilling program are expected beginning in Q3 (third quarter) 2026, following completion of sample preparation and laboratory analysis at an independent SGS laboratory under industry-standard QA/QC (quality assurance/quality control) protocols.
• Drilling at the Carrick EP is planned to follow the Smylers EP drilling program, with land access engagement currently being finalized with affected landowners. Drilling at Carrick EP will twin and validate key historical gold intersections within the Carrick goldfield, an area that, despite its historical production, has never been systematically tested with modern exploration techniques or deeper drilling.
• Iwi engagement has been reinitiated and land access arrangements have been updated in advance of rig mobilization, reflecting KO Gold's continuing commitment to constructive relationships with Maori mana whenua and local landholders.

Drilling program overview

The company's 2026 drilling campaign is now under way and represents a significant operational milestone for KO Gold following several years of systematic exploration, target generation and permitting work across the Otago gold district. The drilling campaign will progress sequentially across KO Gold's drill-ready exploration permits, beginning at its Smylers EP and continuing at its Carrick EP, located within the historic Carrick goldfield. Drilling is also planned for targets in the Hyde EP and Glenpark EP in 2026.

Drilling will focus initially along the southeastern extension of the HMSZ at Smylers EP, the regional structure that hosts OceanaGold's Macraes mine, New Zealand's largest active gold operation. The Hyde EP is located on the northwestern extension and the Glenpark EP is a downdip northeast extension target on the HMSZ. Drilling at the Carrick goldfield is located in close proximity to Santana Minerals' Bendigo-Ophir gold project. All drill collar locations, planned hole orientations and access arrangements for Smylers EP and Carrick EPs have been finalized in consultation with affected landowners and in accordance with the conditions of the company's exploration permits granted by New Zealand Petroleum & Minerals.

Smylers gold exploration permit (EP 60389)

Smylers EP is located along the eastern extension of the HMSZ that hosts the Macraes gold mining operation. The current drilling program will step out from prior KO Gold drill holes completed in 2021 that included impressive gold intersections and will test continuity of this mineralization along strike. A selection of deeper RC holes will be further extended using diamond drilling techniques. Drilling commenced on May 5, 2026, and concurrent soil geochemical sampling is planned during the program to refine targeting on adjacent untested areas of the permit.

Carrick exploration permit (EP 60976)

Drilling at Carrick EP is planned to follow the Smylers EP program. The program will include geological mapping and an RC/DDH drilling program designed to twin and validate key historical gold intersections within the Carrick goldfield. Despite its historical production, the area has never been systematically tested using modern exploration techniques or deeper drilling. Land access engagement with affected landowners is being finalized and Department of Conservation access arrangements are being advanced where applicable.

After visiting the first drill site at Smylers EP, Greg Isenor, president and chief executive officer of KO Gold, commented: "The commencement of drilling at Smylers EP represents a significant operational milestone for KO Gold and reflects several years of systematic exploration, target generation and stakeholder engagement in the Otago gold district. Our team has assembled a high-quality portfolio of drill-ready permits along strike from, and adjacent to, two of New Zealand's most significant gold systems: the Macraes mine and the Bendigo-Ophir gold project. With drilling now under way at Smylers EP and the Carrick program advancing toward drill mobilization, we look forward to reporting drilling progress and assay results as the 2026 campaign advances."

Otago gold belt -- exploration context

The Otago gold belt's gold potential is underscored by the long-standing success of OceanaGold's Macraes mine, which has produced over five million ounces of gold since 1990, and by Santana Minerals' rapid mine development at its Bendigo-Ophir gold project, located northwest of the Macraes mine along a similar shear zone. The Bendigo-Ophir gold project, located in close proximity to the company's Carrick exploration permit, contains a JORC indicated resource of 18.9 million tonnes at an average grade of 2.5 grams per tonne (g/t) gold (Au) for 1.5 million contained ounces of gold (source: Santana Minerals news release dated March 4, 2025). On Nov. 5, 2025, Santana Minerals announced that the New Zealand government had granted a mining permit for the Bendigo-Ophir gold project under the recently enacted Fast-track Approvals Act. Note that a qualified person (QP) has been unable to verify the information on the Bendigo-Ophir gold project and this information is not necessarily indicative of the mineralization on the company's permits in the Otago gold belt.

Recent drilling results throughout the region highlight the continuity and depth extensions of mineralized zones, signalling increasing exploration momentum. The Otago region remains significantly underexplored, particularly at depth, and has seen a notable uptick in new staking activity in recent months.

Cautionary statements

This news release contains scientific and technical information with respect to adjacent properties to the company's properties in the Otago gold district, which the company has no interest in or rights to explore. Readers are cautioned that information regarding the geology, mineralization and mineral resources on adjacent properties is not necessarily indicative of the mineralization on the company's properties.

Qualified person statement

All scientific and technical information contained in this news release was prepared and approved by Paul Teniere, PGeo, vice-president of exploration and director of KO Gold, who is a qualified person as defined by National Instrument 43-101.

About KO Gold Inc.

KO Gold is a Canadian junior exploration company listed on the Canadian Securities Exchange under KOG. The company's strategy is to acquire and explore highly prospective gold properties within the Otago gold district in New Zealand. KO Gold presently has four 100-per-cent-owned exploration permits within the Otago gold district for a combined land package of 400 square kilometres (including the Carrick Range exploration permit application). The company's Smylers EP, Hyde EP and Glenpark EP are located adjacent to OceanaGold's Macraes gold mine, and the Carrick EP includes the historic Carrick goldfield, which holds promise as a significant gold deposit near Santana Minerals' Bendigo-Ophir gold project. The company also has an NSR (net smelter return) on three additional permits, Garibaldi, Raggedy Range and Rough Ridge South, totalling 340 square kilometres. KO Gold has spent over $3-million in exploration and drilling on its permits in the Otago gold district over the past five years, including RC and diamond drilling on its Smylers gold EP, with drilling currently under way at Smylers, and additional drilling planned for its Carrick EP, Hyde EP, and Glenpark EP in 2026.

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