Mr. Ian Bliss reports

NORTHERN SHIELD RECEIVES $1M PROCEEDS FROM LABGOLD SUBSCRIPTION RECEIPT FINANCING

The $1-million aggregate gross proceeds from the previously announced (see press releases dated Dec. 8 and Dec. 30, 2025) strategic non-brokered private placement of 16,666,667 subscription receipts with Labrador Gold Corp. has been released to Northern Shield Resources Inc. (the company) following satisfaction of the escrow release conditions.

The offering

The escrow funds were held in escrow pursuant to the terms of a subscription receipt escrow agreement between the company and Labrador Gold, and the release was conditional upon, among other things, receipt of Labrador Gold shareholder and regulatory approval with respect to Labrador Gold's change of business.

Each subscription receipt has been exchanged, without any further action or any additional consideration on the part of Labrador Gold, for one unit of the company with each unit consisting of one common share of Northern Shield and one common share purchase warrant. Each warrant entitles Labrador Gold to purchase one additional common share at a price of 10 cents per warrant share until March 5, 2029.

As additional consideration for Labrador Gold in respect of the offering, for as long as Labrador Gold retains a 10-per-cent equity interest in the company, Labrador Gold shall have the following rights: (i) a pre-emptive right to participate in future financings of Northern Shield to maintain its equity interest in the company following the issuance of the units to Labrador Gold; and (ii) the right to appoint a technical adviser to help guide exploration activities carried out on the company's properties.

Northern Shield intends to use the escrow funds for further exploration programs, including geophysics and diamond drilling, at the company's Root & Cellar property, exploration on the company's newly acquired claims in the region and for general working capital purposes. The common shares and issued upon exchange of the subscription receipts (and the underlying warrant shares upon exercise of the warrants) are subject to a statutory hold period and a voluntary lock-up ending July 5, 2026, and the resale rules of applicable securities legislation.

About Northern Shield Resources Inc.

Northern Shield is a Canadian-based company known as a leader in generating high-quality exploration targets that views greenfield exploration as an opportunity to find a Tier 1 asset near surface and at relatively low cost. It implements a model-driven exploration approach to reduce the risk associated with early-stage projects for itself, its shareholders and the environment. This approach led it to option the Root & Cellar property from a Newfoundland prospector, which discovered the mineralization and then its advancement to a large gold-silver-tellurium and copper porphyry system.

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