Mr. Christian Kargl-Simard reports

BLUE MOON METALS ANNOUNCES CLOSING OF US$5 MILLION PRIVATE PLACEMENT AND INITIAL US$12.5 MILLION DRAW UNDER BRIDGE LOAN FROM HARTREE/OAKTREE TO ADVANCE FLAGSHIP NUSSIR PROJECT IN NORWAY

Blue Moon Metals Inc. has closed its previously announced $5-million (U.S.) non-brokered private placement of common shares of the company with Opps XII BL MN Holdings LP, a fund managed by Oaktree Capital Management LP. This represents the first subscription of an equity commitment of up to $20-million (U.S.) from funds managed by Oaktree Capital Management and Hartree Partners LP. The common shares issued pursuant to the initial equity subscription are subject to a hold period expiring four months and one day from the issue date in accordance with applicable Canadian securities laws.

The company is also pleased to announce that it has received conditional approval from the TSX Venture Exchange for the previously announced arm's-length bridge loan with Oaktree, Hartree, Nussir ASA, a 93.55-per-cent-owned subsidiary of the company, and Keystone Mines Inc., a wholly owned subsidiary of the company, as borrowers, and Blue Moon Norway AS and Repparfjord Eiendom AS, each a wholly owned subsidiary of the company, as guarantors. Pursuant to the bridge loan, upon satisfaction of certain conditions precedent, the company may draw two instalments of $12.5-million (U.S.). No finders' fees are payable in connection with the bridge loan, and the terms of such bridge loan are substantially consistent with those disclosed in the company's news release dated Aug. 19, 2025. As security for the bridge loan, the borrower group members have granted the lenders a security interest and a first-ranking lien over the assets comprising: (i) Nussir ASA's advanced-stage sediment-hosted development copper-gold-silver project located in northern Norway; and (ii) the polymetallic volcanogenic massive sulphide deposit located in central California approximately 22 miles northeast of Merced and 120 miles east-southeast of San Francisco (the Blue Moon project), subject only to permitted liens. In addition, the company has granted the lenders a security interest and a first-ranking lien over all of its present and after-acquired personal property, subject only to permitted liens. The company has satisfied all conditions precedent to the first advance and has drawn $12.5-million (U.S.). Concurrent with the first drawdown under the bridge loan, the company issued 1,045,000 common shares of the company to Hartree, which common shares are subject to a hold period expiring four months and one day from the issue date in accordance with applicable Canadian securities laws.

These developments represent the first stages of a larger investment package, which can provide for up to $140-million (U.S.) of support for the continued development and construction the company's flagship, fully permitted Nussir copper project, located in Norway.

Highlights of the full investment package:

• $25-million (U.S.) bridge loan: The company has drawn $12.5-million (U.S.) and may draw a second instalment of $12.5-million (U.S.) upon the satisfaction of certain standard conditions precedent to all advances, which conditions are substantially similar to those satisfied by the company in connection with the first advance.
• Up to $20-million (U.S.) in equity: The company has closed the initial equity subscription for $5-million (U.S.) with Oaktree. Pursuant to a non-binding follow-on letter of intent, up to an additional $15-million (U.S.) equity investment from funds managed by Oaktree Capital Management and Hartree may be completed upon the occurrence of certain events and capped to maintain ownership below a 19.9-per-cent threshold between the lenders and subject to certain closing conditions. The initial equity subscription remains subject to the final approval of the TSX-V.
• Up to $50-million (U.S.) senior secured term loan and $70-million (U.S.) redeemable precious metal stream agreement: A non-binding letter agreement has been signed and provides non-dilutive financing aligned with production, available postfinal investment decision, subject to customary milestones and closing conditions.

The capital from the initial draw under the bridge loan and the initial equity subscription will support key early works and preconstruction activities, including detailed engineering, procurement of long-lead items, underground development and operational readiness. The bridge loan is structured to provide working capital for Nussir and the Blue Moon project. The $50-million (U.S.) senior secured term loan and $70-million (U.S.) redeemable precious metal stream is contemplated to be used for the completion of the Nussir project, following the satisfaction of certain defined conditions by March 31, 2026, including delivery of the previously announced Worley feasibility study targeted for February, 2026.

Legal counsel

Bennett Jones LLP is acting as legal counsel to the company. Torys LLP is acting as legal counsel to Hartree/Oaktree.

About Blue Moon Metals Inc.

Blue Moon is advancing three brownfield polymetallic projects, including the Nussir copper-gold-silver project in Norway, the NSG copper-zinc-gold-silver project in Norway and the Blue Moon zinc-gold-silver-copper project in the United States. All three projects are well located with existing local infrastructure including roads, power and historical infrastructure. Zinc and copper are currently on the U.S. Geological Survey and European Union list of metals critical to the global economy and national security.

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