Mr. Greg Davis reports

SUN PEAK CLOSES FIRST TRANCHE AND INCREASES NON-BROKERED PRIVATE PLACEMENT

On Oct. 5, 2026, Sun Peak Metals Corp. closed a first tranche of its non-brokered private placement, as previously announced on Sept. 17, 2026, and Sept. 23, 2026, for gross proceeds of $9,709,358.

In the closing of the first tranche, a total of 24,273,396 units of the company were issued, at a price of 40 cents per unit. Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of 55 cents per warrant share for a period of two years from closing of the offering.

The warrants will be subject to an accelerated expiry provision such that, if the volume-weighted average price of the company's common shares on the TSX Venture Exchange equals or exceeds $1.10 for 10 consecutive trading days, then the warrants will expire 30 days following the date on which the company either provides notice of acceleration to the holders of the warrants or issues a news release announcing the acceleration, in each case at the company's election.

The net proceeds of the offering will be used for exploration on the company's projects located in the Kingdom of Saudi Arabia and Ethiopia, the costs of the offering, and for general working capital.

In connection with the first tranche closing of the offering, the company paid cash finders' fees of $103,440, issued 708,203 non-transferable finders' warrants to certain arm's-length finders and issued 449,603 units to a certain arm's-length finder. Each finder's warrant is exercisable to acquire one common share of the company at a price of 55 cents per common share for a period of two years from the date of closing of the applicable tranche of the offering. Each finder's unit has the same terms as the units issued to subscribers in the offering.

The securities issued in connection with the offering will be subject to a four-month-and-one-day hold period under applicable securities laws. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX-V. Finders' fees may be payable in connection with subsequent tranches of the offering and will be disclosed if applicable.

Increase in the offering

The company also announces that due to additional strong investor demand, it has increased its non-brokered private placement offering, previously announced on Sept. 17, 2026, and Sept. 23, 2026, to gross proceeds of up to $12-million, an increase of $2-million from the previously announced gross proceeds of up to $10-million.

Under the amended terms, the offering now consists of the issuance of up to 30 million units at a price of 40 cents per unit for aggregate gross proceeds of up to $12-million.

About Sun Peak Metals Corp.

Sun Peak Metals' portfolio is located within the Arabian-Nubian Shield, a highly prospective Precambrian mineral belt that hosts numerous VMS (volcanogenic massive sulphide), intrusion-related and orogenic gold systems, including Jabal Sayid and Mansourah in Saudi Arabia and the Bisha mine and Asmara projects in Eritrea. The company's exploration strategy is focused on systematically advancing a pipeline of projects from regional target identification through drill testing.

In the Kingdom of Saudi Arabia, the company holds 13 exploration licences totalling 1,072 square kilometres along established VMS and gold trends, with applications pending for two additional exploration licences covering approximately 200 square km.

In Ethiopia, the company's Shire project comprises six exploration licences covering approximately 1,450 square km.

Sun Peak's team has a strong record of multiple mine discoveries within the Arabian-Nubian Shield, supported by significant capital markets strength and experience.

We seek Safe Harbor.