Mr. Kal Malhi reports

COLOURED TIES COMMITS TO PAY SHAREHOLDER DIVIDEND RATHER THAN ALLOW CURRENT PATH TO CONTINUE TREASURY DESTRUCTION

Coloured Ties Capital Inc., one of the largest shareholders of Labrador Gold Corp. (TSX Venture Exchange: LAB), together with Kal Malhi and Rauni Malhi (the concerned shareholders), commit to paying shareholders a two-cent dividend, if successful and will declare it within seven days of the shareholder meeting. Shareholders are tired of the continuing value destruction, including the recently announced "pipe dream" greenfield investments. It would be far better to return some capital to shareholders than to continue to gamble it away on these poorly considered, so-called investments in other companies' projects. Coloured Ties believes that returning some capital to shareholders is the right thing to do and it would still leave enough capital in the treasury to pursue prudent brownfield opportunities.

During the last two years, Labrador Gold's treasury dwindled from over $19-million (as of financial statements dated Dec. 31, 2024) to what is expected to be under $12-million to $14-million following the upcoming shareholders' meeting, with zero shareholder value delivered by the current Labrador team.

Coloured Ties would seek to eliminate costs associated with the current path of pursuing remote grass roots projects and or "minority investments" and divert those expenses toward the shareholder dividend.

Prior to Coloured Ties' involvement with Labrador Gold and its purchases of Labrador Gold common shares, Labrador Gold's common shares traded in the six-cent-to-eight-cent range (June to July, 2025). A dividend of two cents would provide shareholders an attractive tax advantage dividend return equal to 25- to 33-per-cent return, based on their pre-Coloured Ties share values, and still leave shareholders with their shareholdings intact, in a newly structured mineral exploration focused company.

In contrast, allowing the current treasury destruction path and voting for the continuation of the current management will likely result in a much depleted treasury, a grass roots project portfolio and a return to the pre-Coloured Ties common share valuation, or much less.

Coloured Ties would like to thank shareholders for the overwhelming support received to date and urges shareholders who have not yet voted to do so. Only by voting on the gold proxy or gold VIF can shareholders reverse years of mismanagement and only by supporting Coloured Ties can shareholders finally get some of their own capital back. Coloured Ties is encouraged that so many fellow shareholders have affirmed the need for change. Their message is clear: Shareholders hold the board and management accountable for years of value destruction and strategic missteps. Equally clear is their unwillingness to compound this record with a risky and unnecessary shift in business -- one for which the board lacks both relevant experience and credible execution capabilities.

This shareholder meeting will determine whether Labrador continues down a path of value destruction or finally embraces accountability, disciplined capital allocation and shareholder-focused leadership. It takes minutes to vote. It takes years to undo bad decisions.

If you have any questions or require any assistance with your vote, please contact Coloured Ties' strategic adviser, Advisense Partners, at 1-866-207-4819 (toll-free in North America), 1-437-783-3139 (outside North America) or via e-mail at engage@advisensepartners.com.

About Coloured Ties Capital Inc.

Coloured Ties is a publicly traded Canadian-based venture capital firm focused on early stage investments in companies in the junior resources and breakthrough and disruptive technologies. Coloured Ties' investment strategy is to invest early in multiple private and public companies across a variety of sectors that merit investment to advance promising ventures globally. Coloured Ties invests early- stage in promising projects, serving as the founding or early stage investor and providing investees with advisory services and access to the company's ecosystem.

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