Mr. Joseph Ovsenek reports

P2 GOLD SECURES WATER RIGHTS FOR THE GABBS PROJECT

P2 Gold Inc.'s wholly owned subsidiary, P2 Gabbs Inc., has entered into a letter agreement dated March 19, 2026, with an arm's-length private vendor to acquire water rights in the Gabbs basin of Nevada. The agreement remains subject to the execution and delivery of a definitive agreement and the approval of the TSX Venture Exchange. The company has also agreed to settle outstanding shareholder working capital loans with certain insiders of the company.

Pursuant to the letter agreement, P2 will acquire 2,500 acre-feet per year of water rights, a water supply that exceeds the current projected process water requirements for the Gabbs project and ensures upside capacity in anticipation of potential project expansion.

Letter agreement key terms

The key terms of the letter agreement are:

• P2 Gabbs will acquire rights to 2,500 acre-feet per year of water rights in the Gabbs basin of Nevada;
• The purchase price payable to the vendor for the water rights is $4,250 (U.S.) per acre-foot per year for a total of $10,625,000 (U.S.), with $100,000 (U.S.) (the definitive payment) payable on the signing of the definitive agreement and $10,525,000 (U.S.) payable within 30 days following the Nevada Division of Water Resources (NDWR) approving the transfer of the water rights to P2 Gabbs;
• $100,000 (U.S.) payable to the vendor each year on the anniversary of the definitive payment if the NDWR has not approved the transfer of the water rights to P2 Gabbs at that time;
• The vendor shall be responsible for filing the documentation with NDWR for the transfer of the water rights to P2 Gabbs for use at the Gabbs project, the cost of which filing will be paid by P2 Gabbs.

The anticipated time frame for NDWR approval of the transfer of the water rights to P2 is six to 12 months, coinciding with the projected completion of the Gabbs feasibility study at the end of the fourth quarter.

"With water rights secured for the Gabbs project, we have achieved a major derisking milestone," commented Joe Ovsenek, president and chief executive officer of P2. "We will now turn our attention to other long-lead items required for production at Gabbs. Approval of the transfer of the water rights is expected by year-end, which fits well with the expected completion of the Gabbs feasibility study in the fourth quarter of this year."

Total makeup water requirements for the process facilities at Gabbs have been estimated at 215 cubic metres per hour (approximately 1,500 acre-feet per year) at a processing rate of nine million tonnes per year. See the technical report entitled "NI 43-101 Technical Report, Preliminary Economic Assessment, Gabbs Heap Leach and Mill Project, Nye County, Nevada, USA," with an effective date of Oct. 7, 2025. The Gabbs technical report is available under the company's profile on SEDAR+ and on the company's website.

Shares for debt

P2 has agreed with certain insiders of P2 to settle $503,357.63 in shareholder loans previously provided for working capital for 671,143 P2 shares at a deemed price of 75 cents per share. The loan settlement remains subject to approval of the exchange. The loan shares to be issued in respect of the loan settlement will be subject to a hold period of four months. The loan settlement with such insiders will be a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The loan settlement with each of these individuals is exempt from the minority approval and formal valuation requirements of MI 61-101 pursuant to subsections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of the debt nor the fair market value of the shares to be issued in settlement of the debt, exceeds 25 per cent of P2's market capitalization.

Qualified person

Ken McNaughton, MASc, PEng, chief exploration officer of P2 Gold, is the qualified person, as defined by National Instrument 43-101, responsible for the Gabbs project. Mr. McNaughton has reviewed, verified and approved the scientific and technical information in this news release.

About P2 Gold Inc.

P2 Gold is a mineral exploration and development company focused on advancing its gold-copper Gabbs project on the Walker Lane trend in Nevada, where work to support a feasibility study is under way. A positive preliminary economic assessment has outlined a long-life, mid-size mine at Gabbs with annual average production of 109,000 ounces gold and 15,000 tonnes copper over a 14.2-year mine life. The Gabbs project has excellent infrastructure with access by paved Highway 361 and power and water on site. All zones on the property remain open and an infill and expansion drill program is under way. On completion of drilling, an updated mineral resource estimate will be prepared for Gabbs, which is expected to be completed in the third quarter.

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