Mr. Mark Trevisiol reports

MCFARLANE LAKE MINING OUTLINES FULLY FUNDED 50,000-METRE PHASE 2 DRILLING PROGRAM AT JUBY GOLD PROJECT

McFarlane Lake Mining Ltd. has outlined its fully financed phase 2 exploration program at its 100-per-cent-owned Juby gold project, located west of Gowganda, Ont., within the southern part of the Abitibi greenstone belt. The company plans to complete 50,000 metres of drilling over the next 12 to 15 months, with three drills expected to be fully deployed before Nov. 1, 2026.

The program will pursue two objectives in parallel: expanding known gold mineralization and testing new discovery targets. Two drills will focus on resource expansion. A third will initially conduct infill drilling, and then move to test priority targets identified through the company's geological interpretation and completed geophysical targeting work. McFarlane has expanded its geological and technical team to support the increased drilling activity. The recent appointment of Gilbert Lamarche as chief operating officer further strengthens the company's technical and operational leadership as McFarlane advances the expanded drilling program, technical studies and development planning at Juby.

Highlights:

• Fully financed next phase: 50,000 metres of planned drilling over 12 to 15 months, supported by the company's financial position following its September, 2026, financing, which raised $17.25-million in gross proceeds (see the company's announcement dated Sept. 9, 2026);
• A substantial increase in drilling: phase 2 is nearly four times the 12,982 m completed in phase 1 and represents more than 40 per cent of the 116,570 m drilled by previous operators;
• Three drills, two avenues for growth: two drills targeting expansion of known mineralization and a dedicated third drill conducting infill drilling and later testing additional gold targets beyond the currently defined resource areas;
• A larger resource foundation: the recently filed mineral resource estimate reports 1.07 million ounces of indicated gold resources at 0.96 gram per tonne in 34.68 million tonnes and, separately, 5.09 million ounces of inferred gold resources at 0.87 g/t in 183.05 million tonnes;
• Scoping study, advancing exploration and development planning together: a coming scoping study is planned to be initiated this quarter, with results by late second quarter 2027; environmental baseline studies are nearing completion, with submission of an advanced exploration closure plan targeted for early 2027.

"Over the past year, we have established a larger resource foundation at Juby, secured funding for our next major drilling campaign and built the team to execute it," said Mark Trevisiol, president and chief executive officer of McFarlane. "Phase 2 gives us the capacity to expand the known deposits while systematically testing the broader property for new discoveries. Our objective is to demonstrate more of Juby's scale and geological potential through drilling while proving the economics of this prolific deposit through a scoping study and advancing the environmental and technical work needed for its next stage."

A major step up in exploration

The latest technical report documents 116,570 m of historical drilling and 12,982 m of McFarlane phase 1 drilling, bringing the reported project total to 129,552 m. The planned phase 2 campaign would add more than 50,000 m to that foundation and provide a substantially larger data set for evaluating extensions of known deposits and new mineralized areas.

The company intends to prioritize targets with potential to expand known mineralization along strike and at depth while using incoming results to refine subsequent drilling. Successful drilling would be evaluated for inclusion in future mineral resource estimates.

Dedicated drill capacity for new discoveries

Three drills will allow McFarlane to test new targets while maintaining progress on its resource expansion program. Target selection will integrate geophysical responses with geological modelling, structural interpretation and existing drill results. McFarlane has identified three priority areas for additional 3-D induced polarization work to help locate and define drill targets. The planned work will be integrated with the geological model and existing drilling to prioritize targets for follow-up testing.

Previously disclosed 3-D induced polarization modelling identified priority targets along the interpreted 826 zone trend toward Golden Lake, approximately 1.6 kilometres to the northwest. This corridor provides a focus for testing potential extensions and additional mineralized structures. Geophysical anomalies require drilling to determine whether they host gold mineralization and do not establish continuity between deposits.

"We have built the geological team to support sustained drilling and turn results into the next round of targets," said Winston Whymark, manager of exploration. "Two drills will focus on extending the mineralization we already know while the third tests areas that could add a new dimension to the project. That combination gives us a practical way to pursue resource growth and new discoveries throughout the program."

Scoping, baseline studies and advanced exploration planning

Alongside drilling, McFarlane will initiate a scoping study with plans to have a final report mid-2027. This will prove out the economics to support the development of the property. In December of 2025, McFarlane commenced environmental baseline studies, all along engaging first nation communities for their participation. These baseline studies are part of an effort to apply for an advanced exploration permit, complete with closure plan documents and financial assurance. Submission is targeted for first quarter 2027. The work is intended to support a proposed bulk sampling program and the evaluation of future advanced exploration activities, subject to applicable regulatory requirements and consultation.

Coming milestones:

• Three drills expected to be fully deployed before Nov. 1, 2026;
• Resource expansion drilling and dedicated discovery drilling over the next 12 to 18 months;
• Planned 3-D IP work across three priority areas to help locate and define additional drill targets;
• Assay results and target updates as drilling, laboratory analysis and technical review progress;
• Initiation of scoping study with target completion by end of second quarter 2027; early-stage metallurgical testwork is expected to conclude late in this quarter;
• Completion of the current environmental baseline program and targeted closure plan submission in early 2027.

Equity compensation grants

The company has granted an aggregate of 7.27 million equity compensation securities to certain directors, officers, employees and consultants, consisting of stock options and restricted share units. The options are exercisable at a price of 48 cents per common share of the company. The options and RSUs were granted on the terms set out in the applicable plans and related grant agreements.

About McFarlane Lake Mining Ltd.

McFarlane 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 project hosts a current (effective Aug. 14, 2026) National Instrument 43-101 mineral resource estimate of 1.07 million ounces of gold in the indicated category at an average grade of 0.96 g/t gold (34.68 million tonnes) and an additional 5.09 million ounces of gold in the inferred category at an average grade of 0.87 g/t gold (183.05 million tonnes). The estimate was calculated using a long-term gold price of $3,600 (U.S.) per ounce, applying cut-off grades of 0.25 g/t gold for open pit and 1.60 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 is filed on SEDAR+ under the company's profile and is also available on the company's website.

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

In addition to the Juby gold project, McFarlane holds a portfolio of 100-per-cent-owned gold assets in 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 Lake Mining is a reporting issuer in Ontario, British Columbia and Alberta.

Qualified persons

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

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