Mr. Darby Stacey reports

TALON METALS REDUCES ROYALTY ON THE TAMARACK PROJECT

Talon Metals Corp. has completed the exercise of its contractual right to reduce the existing net smelter returns royalty held by Triple Flag USA Royalties Ltd., a subsidiary of Triple Flag Precious Metals Corp., on Talon's interest in the Tamarack nickel-copper-cobalt project in central Minnesota.

Talon has now reduced the combined net smelter returns royalties held by Triple Flag on Talon's interest in the Tamarack project from 3.52 per cent to 2.85 per cent in exchange for a payment of $5.0-million (U.S.) to Triple Flag.

The payment was made on July 20, 2026, in accordance with the terms of the existing royalty agreement.

"This transaction reflects our continued confidence in the Tamarack project," said Darby Stacey, chief executive officer of Talon. "Reducing the royalty improves the project's long-term economics and allows Talon to retain more of the potential upside over the life of the project as the Tamarack project advances through environmental review, permitting, technical studies and development planning."

Background

On March 7, 2019, Talon granted Triple Flag a 3.5-per-cent net smelter returns royalty on Talon's interest in the Tamarack project. The royalty was granted in exchange for Triple Flag providing Talon with a portion of the initial funding required for Talon to earn up to a 60-per-cent interest in the Tamarack project. In February, 2022, Talon reduced this royalty from 3.5 per cent to 1.85 per cent, in exchange for a payment of $4.5-million (U.S.) to Triple Flag.

On July 5, 2024, Talon granted a second net smelter returns royalty of 1.67 per cent and issued common share purchase warrants in the capital of the company to Triple Flag, in consideration for the payment to Talon of $8.0-million (U.S.). Under the terms of the second royalty agreement, Talon retained the right to reduce the second royalty from 1.67 per cent to 1.00 per cent through a payment of $5.0-million (U.S.). Talon completed the exercise of that right on July 20, 2026, by paying $5.0-million (U.S.) to Triple Flag.

Triple Flag now retains a combined 2.85-per-cent net smelter returns royalty on Talon's interest in the Tamarack project.

About Talon Metals Corp.

Talon is a Toronto Stock Exchange-listed base metals company advancing and operating high-grade nickel-copper assets in the United States. Talon owns 100 per cent of Eagle mine and Humboldt Mill in Michigan. Eagle Mine is the only primary nickel mine currently operating in the United States, and the Humboldt Mill is an ore processing facility. Talon is also advancing the Tamarack nickel-copper-cobalt project in central Minnesota through a joint venture with Rio Tinto. Talon currently owns 51 per cent of the Tamarack nickel-copper-cobalt project and has an earn-in right to acquire up to 60 per cent. Talon's shares are also traded in the United States over the OTC market under the symbol TLOFF. The Tamarack nickel-copper-cobalt project comprises a large land position, including 18 kilometres of strike length, with additional high-grade intercepts outside the current resource area. Talon has a neutrality and work force development agreement in place with the United Steelworkers union. Talon's Beulah Minerals processing facility in Mercer county, North Dakota, was selected by the U.S. Department of Energy for a $114.8-million (U.S.) funding grant from the Bipartisan Infrastructure Law, and the U.S. Department of War awarded Talon a grant of $20.6-million (U.S.) to support and accelerate Talon's exploration efforts in both Minnesota and Michigan. Talon has well-qualified and experienced exploration, mine permitting, mine development, operations, and community relations teams.

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