Mr. Len Brownlie reports

PROSPECT RIDGE ANNOUNCES FIRST TRANCHE CLOSING OF CRITICAL METALS FLOW-THROUGH UNIT PRIVATE PLACEMENT

Prospect Ridge Resources Corp. has closed a first tranche of its non-brokered private placement of 7.5-cent critical mineral flow-through units announced on Oct. 2, 2026 (see news release for details), issuing an aggregate of 17,935,002 FT units for gross proceeds of $1,345,125.15.

In connection with the first tranche, the company paid aggregate finder fees of $88,200.01 in cash and issued an aggregate of 1,176,000 finder warrants, exercisable at 10 cents for two years subject to acceleration on the occurrence of certain events. All securities issued in the first tranche are subject to a statutory hold period expiring on Feb. 14, 2027.

Insiders of the company purchased an aggregate of 335,000 FT units, representing approximately 1.87 per cent of the total number of FT units issued in the first tranche. The common shares so acquired by insiders represented approximately 0.25 per cent of the issued and outstanding common shares upon closing, and, together with the common shares issuable on exercise of the warrants so acquired by insiders, would constitute an aggregate number of common shares representing approximately 0.38 per cent of the then issued and outstanding shares upon closing.

The participation by insiders constitutes a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company is relying upon the exemptions from the formal valuation and minority shareholder approval requirements pursuant to sections 5.5(a) and (b) and 5.7(1)(a), respectively, of MI 61-101 on the basis that neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction insofar as it involves interested parties (within the meaning of MI 61-101) in the transaction exceeds 25 per cent of the company's market capitalization as calculated in accordance with MI 61-101, and/or on the basis that no securities of the company are listed or quoted on a stock exchange as specified in MI 61-101.

Use of proceeds of the offering

The company intends to use the gross proceeds from the FT shares to incur, on its mineral projects in British Columbia, eligible Canadian exploration expenses that will also qualify as flow-through critical mineral mining expenditures under the Income Tax Act. The company intends the bulk of the gross proceeds to finance a coming 2,500-metre drill program on the issuer's Camelot project, located near Horsefly, B.C. (see news releases dated Jan. 23, Feb. 25 and June 16, 2026), and for preparations for an extensive spring drill program at the company's Excalibur project located north of Smithers, B.C. (see news releases dated Sept. 10 and Sept. 24, 2026).

About Prospect Ridge Resources Corp.

Prospect Ridge is a British Columbia-based exploration and development company focused on critical metals and gold. Led by a seasoned management and technical team with over 100 years of combined mineral exploration experience, Prospect Ridge is advancing its north-central-B.C.-located Golden Horseshoe and Cariboo projects -- high-potential copper-gold systems positioned within one of Canada's most underexplored yet geologically endowed mineral belts.

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