Mr. Steve Hanson reports

SURFACE METALS ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT FINANCING

Surface Metals Inc. has closed a first tranche non-brokered private placement financing, previously announced on May 5, 2025. The company issued 12,085,000 units at 5.5 cents per unit for aggregate gross proceeds of $664,675. The company expects to close the balance of the financing as soon as possible.

Each unit comprised one common share and one-half of one transferable common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of seven cents for three years from closing of the offering. Finder's fee of $34,265 and 623,000 finders' warrants were paid to arm's-lengths parties in connection with the offering. The finders' warrants are exercisable on the same terms as the warrants forming part of the units.

Certain directors and management of the company purchased an aggregate of 2,245,000 units ($123,475) in the private placement. The company has relied on the exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101) contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101 in respect of such insider participation.

The issuer intends to use the proceeds of the offering to finance exploration at its Nevada gold and lithium projects, as well as for general working capital purposes.

All securities that are issued pursuant to the offering are subject to, among other things, a hold period of four months and one day in accordance with applicable Canadian securities laws.

About Surface Metals Inc.

Surface Metals is a mineral exploration company focused on acquiring, exploring and developing battery and precious metal projects in partnership with leading technology and commodity companies in North America. Surface Metals holds a 90-per-cent interest in the Cimarron gold project in Nye county, Nevada, and through its United States subsidiary, ACME Lithium U.S. Inc., is advancing and developing a lithium brine resource at Clayton Lake Valley, Nevada, and holds a sedimentary lithium claystone project at Fish Lake Valley, Nevada. Surface Metals has entered into a strategic exploration agreement with Snow Lake Resources Ltd., a leading partner, at a group of lithium projects in the pegmatite region of Shatford, Birse and Cat-Euclid Lakes in southeastern Manitoba.

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