Mr. Alexandre Boivin reports

QUIMBAYA GOLD GRANTS OPTION TO SELL NON-CORE BERRIO PROJECT FOR UP TO US$3.75 MILLION IN CASH AND SHARES

Quimbaya Gold Inc. has entered into an option agreement dated Aug. 18, 2026, granting an arm's-length purchaser, 37 Capital Inc., the exclusive right to acquire the company's non-core Berrio project in the department of Antioquia, Colombia, for total consideration of up to $3.75-million (U.S.) in cash and shares if the option is exercised. The transaction is non-dilutive to Quimbaya, which retains an approximately 19.9-per-cent equity interest in the purchaser as of the date of this news release, and concentrates the company's capital and technical resources on its flagship Tahami project in the Segovia gold district, where Quimbaya is drill testing a copper-molybdenum-gold porphyry system and advancing on its high-grade gold and silver vein targets.

Highlights:

• Option to sell 100 per cent of the non-core Berrio project: Quimbaya has granted an arm's-length purchaser an exclusive option to acquire a 100-per-cent interest in the Berrio project in Puerto Berrio, Antioquia, for total consideration of up to $3.75-million (U.S.) in cash and shares if exercised.
• Non-dilutive with retained upside: No Quimbaya shares are issued; Quimbaya receives cash plus an approximately 19.9-per-cent equity interest in the purchaser as of the date of this news release, retaining continuing exposure through that equity interest in the purchaser.
• Downside protected: If the option is not exercised, Quimbaya retains a 100-per-cent interest in the Berrio project, together with the non-refundable deposits and all exploration data.
• Sharpened focus: The divestment concentrates Quimbaya's resources on its flagship Tahami copper-molybdenum-gold project, Segovia, where drilling is currently under way, with first Tahami Center drill results expected in Q3 2026.

Alexandre P. Boivin, chief executive officer of Quimbaya Gold, stated: "This transaction is disciplined capital allocation; we are converting a non-core asset into cash and a retained approximately 19.9-per-cent interest, partnering with 37 Capital to put our portfolio to work, without issuing a single Quimbaya share, and putting our full focus on the ground we believe in. That ground is our Tahami project in Segovia: a copper-molybdenum-gold porphyry system at Tahami Center and high-grade gold and silver veins at Tahami South, immediately adjacent to Aris Mining's producing Segovia operations. Quimbaya is a meaningful mining rights holder in one of Colombia's most prolific and actively producing gold districts, and a non-dilutive approach lets us advance it on our own terms. Our next chapter is the first drill results from Tahami Center, which we expect in the third quarter of 2026."

Berrio is located in Puerto Berrio, Antioquia, and is non-core to Quimbaya's near-term strategy, which is centred on the Tahami project in the Segovia gold district. The option enables the company to realize value from a non-core asset while preserving its share structure ahead of an active drill program at Tahami. If the option is exercised, net proceeds are expected to be applied to continuing exploration at the Tahami project and for general working capital.

The Berrio project is held by Golden Pacifico Exploration SAS, Quimbaya's wholly owned Colombian subsidiary, and comprises mining concession contract No. 6822 (approximately 1,218.88 hectares) together with five related mining concession applications submitted to Colombia's National Mining Agency.

Under the option agreement, the purchaser may exercise the option at any time within 12 months of the date of the agreement and may elect to acquire the project either by a direct transfer of the concession contract and related applications or by acquiring 100 per cent of the issued and outstanding shares of the subsidiary. Total consideration of up to $3.75-million (U.S.) is payable in a combination of cash and common shares of the purchaser, comprising a non-refundable deposit of $100,000 (U.S.) and a further non-refundable deposit of $150,000 (U.S.) ($250,000 (U.S.) in aggregate) payable to the company during the option period and, on closing upon exercise of the option, 7.6 million common shares of the purchaser (representing approximately 19.9 per cent of its issued and outstanding shares) at a deemed price of 10 cents per share, together with the balance of the purchase price in cash. In connection with the transaction, the purchaser is undertaking a concurrent non-brokered private placement to raise up to $300,000 (Canadian), in which certain arm's-length and non-arm's-length parties to Quimbaya may participate. In connection with the transaction, a finder's fee of one million common shares of the purchaser is payable to an arm's-length party.

Completion of any sale is subject to exercise of the option and to customary conditions, including the acceptance of the Canadian Securities Exchange.

Qualified person

Ricardo Sierra, AusIMM, is a non-independent officer (vice-president, exploration) and the qualified person for this news release. The scientific and technical content of this press release has been reviewed and approved by Mr. Sierra, who has sufficient experience with South American exploration projects relevant to the style of mineralization and type of deposit under consideration. He consents to the inclusion of the exploration results in the form and context in which they appear.

About Quimbaya Gold Inc.

Quimbaya Gold is a Colombia-focused exploration company advancing a district-scale portfolio of more than 73,000 hectares across highly prospective mineral belts in Antioquia, Colombia. Its flagship Tahami project, located in Segovia, is immediately adjacent to a prolific high-grade gold mining camp, while the Berrio and Maitamac projects are strategically positioned in Puerto Berrio and Abejorral, respectively. Early-stage exploration has identified mineralized vein systems and documented features consistent with a multicommodity porphyry system prospective for gold, copper and molybdenum, highlighting the district-scale discovery potential of Quimbaya's land package. The company is led by a proven technical and management team committed to disciplined exploration and responsible mining practices.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Ricardo Sierra, BSc, MAusIMM (No. 3078246), a qualified person as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects. This news release refers to nearby or adjacent mines, deposits and operations, including Aris Mining's Segovia operations; that information is derived from public sources, the company has no interest in those properties, and mineralization on neighbouring or adjacent properties is not necessarily indicative of mineralization on the company's properties.

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