Mr. Wendell Zerb reports

RED CANYON COMMENCES DRILLING AT ITS 100% OWNED OSIRIS COPPER-GOLD PROJECT

Exploration activities, including diamond drilling, have commenced at Red Canyon Resources Ltd.'s 100-per-cent-owned Osiris copper-gold project located in central British Columbia.

Company highlights:

• The company plans to drill test a series of priority copper-gold targets within the Osiris project area. The Osiris targets are located approximately 35 kilometres west-southwest of Centerra Gold's Mount Milligan copper-gold mine and form part of the company's larger Inzana project area.
• Exploration programs completed in 2025 and 2026 identified several priority zones with the potential to host alkalic copper-gold mineral systems. Induced polarization (IP) geophysical surveys are under way and expected to further refine and enhance previous target modelling.
• An approximately 2,500-metre diamond drilling program (consisting of up to eight drill holes) has commenced, initially testing multiple areas at the Camp target. Historical drill hole 91-2 at Camp intersected 127.4 metres grading 0.18 per cent copper with anomalous gold values. The company interprets this intercept as potentially representing the peripheral expression of a copper-gold porphyry system.
• In addition to the diamond drilling, rotary scout drilling totalling up to 1,500 metres is planned to test several covered targets that have not previously been drill tested.

Wendell Zerb, the chairman and chief executive officer of the company, commented: "We are excited to drill test these alkalic copper-gold targets at Osiris. Alkalic copper-gold systems are commonly associated with above-average grades and host numerous economically significant mines in British Columbia and around the world.

"The Camp target is the highest priority based on its favourable regional geological and structural setting, complex magnetic signature, the presence of copper-gold mineralization in drill core and at surface, and coincident IP chargeability and resistivity anomalies. The planned drilling will follow up on encouraging historical drill results, including an intercept of 127.4 metres grading 0.18 per cent copper. Based on characteristics observed in other well-documented alkalic copper-gold systems, including the Cadia-Ridgeway mineral district in New South Wales, Australia, we believe this historical intercept may represent a peripheral expression of potentially higher-grade copper-gold mineralization at Camp.

"In addition, we have identified several covered target areas exhibiting geophysical signatures similar to those at Camp. An IP geophysical survey is currently under way and is expected to be followed by an initial rotary scout drilling program. Rotary drilling is a cost-effective first-pass exploration method that has been successfully employed in regions with postmineral cover."

Red Canyon projects

The company holds a portfolio of seven 100-per-cent-owned projects in British Columbia and Nevada. High-priority projects are Kendal in west-central British Columbia, Inzana (Osiris and Acheron) in central British Columbia and Scraper Springs in northeastern Nevada.

Osiris project

The Osiris project comprises 11 mineral claims that form the northern part of the Inzana project area. The Inzana project area is located in central British Columbia, approximately 60 kilometres northwest of the district municipality of Fort St. James and 35 kilometres west-southwest of Centerra Gold's Mount Milligan copper-gold mine. The company staked 14,629 hectares of mineral claims within the Inzana project area that are 100 per cent owned and royalty-free. The company has also entered into property option agreements to acquire a 100-per-cent interest in an additional two mineral claims at Osiris and two mineral claims at Acheron, totalling 539 hectares, for total consideration of $48,000 payable over a three-year term. Each of the two optioned mineral claims at Osiris and Acheron is subject to a 1.25-per-cent net smelter return royalty, of which 100 per cent may be purchased for $2-million at any time.

The project area covers the early Mesozoic-aged Quesnellia island arc terrane that occupies much of east-central British Columbia, which hosts several of the province's largest copper mines. The project area is bounded to the west by the northwest-trending Pinchi fault, which juxtaposes older Cache Creek terrane against Triassic-Jurassic Quesnellia terrane. The company interprets that a northeast-southwest cross-arc structure is located on the northern boundary of the Osiris project area. Cross-arc structures are well documented to be important structural pathways for the localization of porphyry deposits in arc terranes around the world.

Red Canyon believes the Osiris project has excellent potential to host potentially economic copper-gold porphyry systems and that previous work identified alkalic porphyry alteration and mineralization indicative of peripheral zones to the main porphyry centres. The area hosts various porphyritic intrusive rocks, anomalous copper, molybdenum and gold geochemistry as well as magnetite-rich hydrothermal alteration interpreted to be related to alkalic porphyry copper systems.

Magnetic data over the Osiris project outline multiple magnetic features bound to the west by the Pinchi fault and adjacent to an interpreted cross-arc structure. Forestry activity in the area has significantly improved road access throughout the area.

Red Canyon has completed geological mapping, selective rock, soil and till sample geochemistry, four-acid geochemistry of historic drill core samples, project-wide airborne magnetics and radiometrics, and magnetic vector inversion (MVI) modelling. Based on these programs, several new targets have been identified for follow-up.

Osiris IP geophysics

The company has engaged Scott Geophysics to complete up to 42 line kilometres of dipole-dipole induced polarization (IP) surveys across multiple target areas. The IP survey is under way and is expected to complement existing target models and geological interpretations. The company has also engaged Fathom Geophysics to undertake IP inversion modelling and interpretation of the survey results.

Camp copper-gold porphyry target

The Camp target is associated with a 1.5-kilometre-by-2.0-kilometre north-northwest-trending magnetic high. Previous work suggests the magnetic-high feature may represent highly oxidized alkalic intrusions and associated hydrothermal magnetite.

A series of historical drill holes at Camp intersected porphyry-style alteration plus copper and gold mineralization indicative of an alkalic porphyry system. Historical drill holes 91-2 and 91-6 completed by Silver Standard Resources Inc. in 1991 ended in mineralization with grades of copper and gold increasing to depth. In addition, porphyry-style veining and potassic alteration are interpreted to be increasing downhole toward the west.

Geological mapping completed by Red Canyon outlined an east-northeast-trending package of hornfels altered sedimentary rocks and interbedded volcanic tuffs that are crosscut by northwest-trending structures parallel to the principal northwest-trending magnetic feature at Camp. Surface mapping identified a southwest-trending zone of copper mineralization preferentially associated with the altered volcanic package. Copper minerals identified include chalcopyrite, malachite and locally occurring bornite.

The principal northwest-trending magnetic feature at Camp is interpreted to represent a causative porphyry intrusion that may be responsible for the copper mineralization observed within the adjacent volcanic rocks. Alteration mapping and interpretations derived from historical drill logs suggest increasing alteration temperatures at depth to the west-southwest of historical drill holes 91-2 and 91-6, supporting the potential for a nearby porphyry source.

Historical drill hole 91-2 from Osiris returned 0.18 per cent copper with anomalous gold over 127.4 m starting from 25.3 m downhole.

Based on the footprint of other known alkalic porphyry deposits around the world, the company believes the target area remains open to vector into a potential higher-grade core to the system.

The company believes the hydrothermal system at Camp remains open along the trend of the magnetic high, which extends in a north-northwest-to-south-southeast direction. Induced polarization (IP) chargeability and resistivity data indicate that zones of elevated chargeability may correlate with altered intrusive rocks and/or graphitic sedimentary units within portions of the Camp area.

A north-trending zone of elevated resistivity, coincident with a moderate chargeability anomaly, is interpreted to represent a potential potassic alteration zone that may correspond to the central portion of the porphyry system.

Osiris magnetic vector inversion modelling

Red Canyon has conducted a project-wide airborne magnetic and radiometric survey, completed by Precision Geosurveys, with Fathom Geophysics completing data filtering and MVI modelling.

The Camp target is modelled as a highly magnetic body interpreted by the company to represent a potential altered biotite-feldspar porphyry intrusion. An intrusive halo consists of altered and mineralized porphyritic andesite and/or augite porphyry and is interpreted as a remanent magnetic feature.

The interpreted intrusive complex expands at depth and trends west-southwest, merging with a newly identified covered target area referred to as Twin Peaks. Geophysical modelling indicates the presence of a series of smaller pipe-like bodies, interpreted as possible porphyry intrusions, extending upward from the larger causative intrusion at depth. Selective basal till sampling completed by Red Canyon in 2025 returned broadly anomalous copper and molybdenum geochemistry associated with the Twin Peaks area.

MVI modelling of the Osiris West area has outlined two large-scale, covered, magnetic target zones, Nautilus and Rhino, both of which host significant magnetic features identified by the MVI study.

The Nautilus target is characterized by a circular magnetic feature measuring approximately three km by three km. The target is bounded to the west by the Pinchi fault and to the north by an interpreted west-southwest-trending cross-arc structure. MVI modelling identified multiple magnetic pipe-like features interpreted as possible porphyry intrusions emanating from a larger magnetic body at depth, which may represent a potential causative porphyry intrusion.

The Rhino target comprises a north-trending linear magnetic feature measuring approximately two km by five km. Like Nautilus, the target is bounded to the west by the Pinchi fault and to the north by the interpreted west-southwest-trending cross-arc structure. MVI modelling identified multiple shallow magnetic pipe-like features interpreted as possible porphyry intrusions connected to a larger magnetic body at depth that may represent a potential causative intrusion. Geophysical modelling also identified potential west-northwest-trending structures linking the Nautilus and Rhino target areas, along which several additional target areas have been identified.

IP geophysical surveys are currently being completed over prominent magnetic features. Following inversion modelling, the company plans to evaluate the target through an initial rotary drilling program. Follow-up diamond drilling will be assessed based on the results of the IP survey and first-pass rotary drilling program.

About Red Canyon Resources

Red Canyon Resources is a technically driven, discovery-focused mineral exploration company exploring North America's top copper jurisdictions. The company's core goal is to make impactful copper discoveries and has a portfolio of 100-per-cent-owned copper and copper-gold porphyry exploration projects.

The Kendal copper project in west-central British Columbia remains a priority project for the company. Current 2026 exploration plans focus on a series of geochemical and geophysical targets identified east of previous drilling at Moly Fork and Kendal Creek. Infill sample geochemistry, IP geophysics and diamond drilling are anticipated to commence in July, 2026.

The company recently completed a project-scale ZTEM (Z-tipper electromagnetic) geophysical survey at its 100-per-cent-owned Scraper Springs project in Nevada. Results, followed by modelling and interpretation, are anticipated in early Q3 2026.

The company's technical team consists of experienced geoscientists with diverse capital market, junior and major mining company backgrounds and a record of success.

Qualified person

The technical information contained in this update has been reviewed and approved by Wendell Zerb, PGeol, a qualified person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Zerb is not independent by reason of being the chairman, president and chief executive officer of the company. In presenting examples in this release for comparison, including the Cadia mine in New South Wales, Australia, the company in no way implies that future exploration will necessarily result in the discovery of similar economic mineral deposits. The qualified person has not verified the information on these deposits and the information disclosed is not necessarily indicative of mineralization on Red Canyon projects.

We seek Safe Harbor.