Mr. Thomas Mumford reports

SCOTTIE RESOURCES ADVANCES DIRECT-SHIP ORE STRATEGY WITH PHASE 2 ORE SORTING STUDY SUCCESS AND FEASIBILITY STUDY LAUNCH

Following the release of Scottie Resources Corp.'s successful preliminary economic assessment (PEA), it has selected Tetra Tech Inc. to lead the study work for a feasibility study (FS) on its on its 100-per-cent-owned Scottie gold mine project (Bird et al., Oct. 28, 2025, Scottie gold mine project, SEDAR+). Scottie is also pleased to report that results of its phase 2 ore sorting study confirmed positive phase 1 results. Using production-level equipment and sample volumes as compared with phase 1, these phase 2 results provide a strong level of confidence in the use of DSO in this production scenario.

The company is targeting completion of the FS in Q2 2027, evaluating a high-margin direct-ship ore (DSO) operation designed to produce a gold-bearing concentrate for shipment to Asian smelters. By incorporating ore sorting and the DSO mine plan, the project aims to eliminate the need for a conventional gold processing plant and tailings facility, significantly reducing capital costs while maintaining a small environmental footprint. The development plan, consistent with the previously released PEA (preliminary economic assessment), envisions initial production from a shallow open pit at the Blueberry zone, followed by underground mining from both Blueberry and the historic Scottie gold mine.

Ore sorting highlights:

• Phase 2 study results are consistent with phase 1 study, demonstrating strong upgrade of all zones within the Scottie gold mine project (SGMP).
• X-ray transmittance (XRT) recovery curves show an advantage over X-ray fluorescence (XRF) curves at the optimal operating range of 50-per-cent to 65-per-cent mass pull to sorter product (35-per-cent to 55-per-cent mass rejection).
  • XRT has been selected for the feasibility study.
• Gold grades used in the phase 2 study were selected based on the 2025 MRE (mineral resource estimate), published in May, 2025, which are lower than the mine plan considered in the 2025 PEA, published in December, 2025, particularly for the open pit (for example, 3.17 grams per tonne Au versus 7.71 g/t Au, respectively).
• The XRT phase 2 test, conducted on a more representative bulk sample, show similar recoveries to the XRT phase 1 test results. Phase 2 results shows that the XRT sorter can recover 82 per cent to 92 per cent of the gold when accepting 50 per cent to 65 per cent of the mass as sorter product.

"This marks another important step forward for the Scottie gold mine project. Ore sorting is an important component of our DSO strategy, and optimizing this process is key to maximizing the payability structure under our offtake agreement with Ocean Partners," stated Thomas Mumford, president and chief executive officer of Scottie. "Selecting XRT technology and conducting another full-scale test with TOMRA, the industry leader in sensor-based ore sorting, will provide additional confidence as we advance planning into the next phase of development. We look forward to providing on progress as the FS moves forward."

Phase 2 ore sorting program -- sampling and testing

In the spring of 2025, core samples were gathered representing the 2025 mineral resource estimate grades from each of the three deposits contemplated at the Scottie gold mine project: Blueberry open pit, Blueberry underground and Scottie underground.

Composite samples for all three zones were created using intervals taken from existing half core, which was cut and the quarter core was broken into approximately 75-millimetre lengths; the remaining quarter core remains preserved at site. Each cut portion was handled in a manner that smaller particles were retained with the sample.

Composite samples for individual deposits weighed approximately 260 kilograms each, which was then separated into two equal fractions. Half of each sample was tested using Tomra's X-ray transmittance (XRT) at the Saskatchewan Research Council Facility, in Saskatoon, and the other half using X-ray fluorescence (XRF) sorter at the Rados facility in South Africa.

Both testing facilities used multiple sensor algorithms and settings, tailored for each unique deposit, through multistage sorting tests to create multiple products at different set points and a final waste. The products and waste were then assayed to calculate recoveries and determine the optimal operating range.

The phase 2 study demonstrates that XRT is the better sorting technology for the SGMP when considering two-way sorting. XRT has a slightly better recovery curve than XRF at the optimal operating conditions. The proposed XRT plant will be designed to produce DSO material at negative 75 mm particle size. In discussions with the Stewart bulk terminal, where the DSO product would be loaded onto vessels, 100 mm sized material posed a potential challenge, while 75 mm material was more favorable and would not require any special handling.

Next steps

Given that the XRT technology has both a recovery and logistical advantage to the project, the team has focused on this type of sorter for the FS, which is currently under way. Scottie will continue to work with ABH Engineering and plan to have a second production scale sample taken this spring (phase 3), largely using drill core from the 2025 season. This sample will have the additional benefit of a mine plan and a mine plan average grade to guide sample selection.

The intent for this FS level test program will be to have the sample tested at the Tomra facility in Germany. Tomra is the world leader in XRT sorting technology, with over 150 XRT units deployed around the world, sorting many ore types, including gold-rich ores.

Qualified person

Dr. Thomas Mumford, PGeo, non-independent president of the company, a qualified person under National Instrument 43-101, has reviewed and approved the technical information contained in this news release on behalf of the company.

About Scottie Resources Corp.

Scottie Resources holds 100-per-cent interest in the Scottie gold mine property, which includes the high-grade, past-producing Scottie gold mine and the adjacent Blueberry Contact zone. The company also owns a 100-per-cent interest in the Georgia project, host to the past-producing Georgia River mine, as well as the Cambria, Sulu and Tide North properties. In total, Scottie controls approximately 58,500 hectares of highly prospective mineral claims within the Stewart mining camp in British Columbia's Golden Triangle -- one of the world's most prolific mineralized districts.

Scottie's current resource estimate on the Scottie gold mine project includes a total of 703,000 gold ounces at an average grade of 6.1 grams per tonne (inferred category) in 3.6 million tonnes, highlighting the development potential for a significant near-surface, high-grade deposit. The company's strategy is to continue expanding this resource and to define additional mineralization around past-producing mines through systematic drilling and surface exploration.

The company has recently completed a PEA for the Scottie gold mine. The PEA outlines a robust direct-ship ore (DSO) development scenario with strong economics and significant upside through a potential toll-milling option utilizing excess capacity at the nearby Premier mill. The base case DSO project delivers an after-tax NPV (net present value) (5 per cent) of $215.8-million to $668.3-million at gold prices of $2,600 (U.S.) to $4,200 (U.S.)/ounce, respectively. Under the toll-milling scenario, project economics improve substantially, with an after-tax NPV (5 per cent) of $380.1-million to $831.7-million (no agreement currently in place). The PEA estimates initial capital costs of $128.6-million, average annual production of approximately 65,400 oz gold over seven years, and a payback period of 1.7 years for the after-tax DSO case-reduced to just 0.9 year under the toll-milling opportunity at $2,600 (U.S.)/oz.

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