Mr. Edward Ellwood reports

PELOTON CLOSES THE FIRST TRANCHE OF FINANCING AND WILL BEGIN DRILLING THIS MONTH AT THE NORTH ELKO LITHIUM PROJECT, NEVADA

Peloton Minerals Corp. has closed the first tranche of a non-brokered private placement financing previously announced as planned on Aug. 15, 2025. The total proceeds received were $902,749.77, which is oversubscribed from the originally planned $630,000, and a second and final tranche is expected to close in about one week. The financing was priced at nine cents per unit, with each unit consisting of one common share and one common share purchase warrant, exercisable for three years at 12 cents. The proceeds of the private placement will be used for lithium exploration in northern Nevada and working capital.

Peloton plans to begin drilling at the company's North Elko lithium project (NELP) in northeastern Nevada later this month and will make a further announcement about that program when drilling commences.

Peloton president and chief executive officer Edward (Ted) Ellwood commented, "In 2024, we raised about $1-million to conduct an extensive and successful surface exploration program at NELP, which now leads us to this financing and an exciting maiden drilling program on the NELP project."

NELP is located immediately adjacent to a high-grade lithium deposit discovered in 2023 by Surge Battery Metals in northeastern Nevada. NELP is about 37 square kilometres (14.25 square miles) in size and is 100 per cent owned with no royalties outstanding. Peloton exploration work to date comprises an airborne hyperspectral survey, airborne magnetics, radiometric and VLF-EM (very-low-frequency electromagnetic) surveys, geologic mapping and soil geochemistry over a 32-square-kilometre grid, prospecting, XRD analysis on over 1,000 surface samples, and surface tTEM geophysics.

The private placement was conducted in reliance upon certain prospectus exemptions, including the exemption allowing issuers to raise capital by distributing securities to existing shareholders contained in Ontario Securities Commission Rule 45-501 (2.9) and the various corresponding blanket orders and rules of participating jurisdictions (with the exception of Newfoundland and Labrador), as well as other available prospectus exemptions, including sales to accredited investors, and close personal friends and business associates of directors and officers of the company. The company set Aug. 15, 2025, as the record date for the purpose of determining existing shareholders entitled to purchase shares pursuant to the existing shareholder exemption.

The securities issued in connection with the private placement are subject to a hold period expiring four months and one day from the issuance of the securities.

Richard C. Capps, PhD, is the qualified person under National Instrument 43-101 who has approved the technical information contained within this news release. Mr. Capps is the company's senior geologist and a director.

Peloton Minerals is a reporting issuer in good standing in the provinces of British Columbia and Ontario, the common shares of which are listed on the Canadian Securities Exchange and trade in the United States on the OTCQB. There are 148,744,813 common shares issued and outstanding in the capital of the company, including the first tranche of the placement described above.

Peloton's exploration portfolio includes a 100-per-cent interest in the North Elko lithium project in northeastern Nevada, which is prospective for lithium, uranium, critical and rare earth minerals, as well the Golden Trail and Independence Valley Carlin-style gold projects in northeastern Nevada, and a non-controlling interest in a copper porphyry project near Butte in Montana.

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