Mr. Michael Murphy reports

SOUTH PACIFIC METALS ANNOUNCES CLOSING OF C$20 MILLION MARKETED EQUITY OFFERING

South Pacific Metals Corp. has closed its previously announced best effort private placement of units, led by BMO Capital Markets, for gross proceeds of $20,008,810. Each unit consisted of one common share of the company and one common share purchase warrant of the company. Under the offering, a total of 24,107,000 units were issued at a price of 83 cents per unit. This includes proceeds from the full exercise of the option granted to the agents (as defined below) to purchase an additional 6,027,000 units.

BMO Capital Markets acted as lead agent and sole bookrunner for a syndicate of agents including Paradigm Capital Inc. and Velocity Trade Capital Ltd.

Each warrant entitles the holder to purchase one common share at a price of $1.40 per common share for a period of 24 months following the closing of the offering. At any time following the 12-month anniversary of the closing of the offering, if the closing price of the common shares on the TSX Venture Exchange exceeds $1.80 for 20 or more consecutive trading days, the company may deliver a notice to the holders thereof accelerating the expiry date of the warrants to a date that is 30 days after the date of such notice.

The company intends to use the net proceeds of the offering to expand exploration activities and for general corporate purposes. The units issued under the offering were issued pursuant to applicable exemptions under Canadian securities laws and are subject to a four-month-and-one-day hold period.

The company intends to use the net proceeds of the offering to expand exploration activities and for general corporate purposes. The units issued under the offering were issued pursuant to applicable exemptions from prospectus requirements under Canadian securities laws and are subject to a hold period expiring on Jan. 24, 2027.

The offering involved the issuance of 60,000 units (for a subscription amount of $49,800) to a related party (as such term is defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions)) and therefore constitutes a related-party transaction under MI 61-101. This transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the securities to be distributed and the consideration to be received for the securities issued to related parties under the offering do not exceed 25 per cent of the company's market capitalization.

The offering was conducted pursuant to an agency agreement between the company and the agents dated Sept. 23, 2026. Pursuant to the agency agreement, the agents received a cash commission of $1,200,528.60 in connection with the offering.

About South Pacific Metals Corp.

South Pacific is an emerging gold-copper exploration company operating in the heart of Papua New Guinea's proven gold and copper production corridors. SPMC has four exploration properties:

• Ontenu (Osena project) -- bordering K92 to the southwest; drilling under way on K92-style targets with drill hits including 8.0 metres grading 8.95 grams per tonne gold, 0.10 per cent copper and 16 g/t silver and 12.2 m grading 4.93 g/t Au, 0.50 per cent Cu and 55 g/t Ag (ONED26-009); all intervals are downhole lengths; true widths have not yet been determined;
• Anga -- bordering K92 to the northeast, along strike from K92's Arakompa discovery; soils to 1,080 parts per billion gold, 3,397 parts per million copper and stream samples up to 281.8 g/t Au;
• Kili Teke -- 4.2 million ounces gold equivalent* National Instrument 43-101 inferred resource (effective Nov. 18, 2022) of 237 million tonnes of 0.34 per cent Cu, 0.24 g/t Au and 168 ppm molybdenum; containing approximately 802,000 tonnes Cu, 1.81 Moz Au and 40,000 tonnes Mo;
• May River -- district-scale system beside Frieda River; high-grade drilling includes 19 m of 11.47 per cent Cu and 2.17 g/t Au and 109 m of 1.53 g/t Au.

* Kili Teke inferred mineral resource of 237 Mt of 0.34 per cent Cu, 0.24 g/t Au and 168 ppm Mo for a total of 802,000 tonnes of Cu, 1.81 Moz of Au and 40,000 tonnes Mo reported at a 0.2-per-cent Cu cut-off above 780 m RL. See the Nov. 18, 2022, technical report for assumptions and estimation methodology. For indicative comparison, SPMC calculates the contained Au and Cu as approximately 4.2 Moz AuEq using $3,300 (U.S.) per oz Au and $4.45 (U.S.) per lb Cu and assumed equal recovery of Au and Cu. Molybdenum is excluded. This AuEq figure is not the basis of the mineral resource estimate, drawn from the independent technical report dated Nov. 18, 2022, prepared by Graeme J. Fleming, BAppSc, MAIG, and available under the company's profile on SEDAR+.

SPMC common shares are listed on the TSX Venture Exchange, the OTCQB marketplace and the Frankfurt Stock Exchange.

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