Mr. Jim Coates reports

YUKON METALS IDENTIFIES NEW IP TARGETS 2 KM SOUTH OF BIRCH SKARN DISCOVERY

A recently completed induced polarization (IP) geophysical survey at Yukon Metals Corp.'s 100-per-cent-owned Birch project has identified a new target zone approximately two kilometres south of known skarn mineralization.

Highlights

• Multiple chargeability anomalies identified south of the Birch skarn expand the exploration footprint into a broader intrusive system.
• The anomalies coincide with a mapped intrusive body and magnetic high and elevated molybdenum-in-soil geochemistry.
• Select grab samples in the same area returned grades up to 16 grams per tonne (g/t) gold, 1,825 g/t silver and 0.43 per cent copper (news release dated Dec. 8, 2025).
• One of the new IP targets was tested by diamond drilling during the 2026 program, with assays pending.

"The IP survey identified a large chargeability anomaly approximately two kilometres south of the skarn zone we had identified and drilled in 2025, and it is present on every principal line we have surveyed," says Jim Coates, chief executive officer of Yukon Metals. "The anomaly sits directly beneath the area where geochemistry, geology and magnetics had already directed our attention, and it was tested by drilling hole 12 this season. The IP data alongside completed surface geochemistry, geology and magnetic response provide multiple independent methods that help guide our efforts towards a potential system. We look forward to reporting additional data as we continue to evaluate and explore the Birch district."

Southern Birch target and IP survey results

Exploration at Birch initially focused on the near-surface skarn mineralization, which provided clear and accessible drill targets. As work progressed, geological mapping, geochemistry and geophysics have increasingly pointed to a broader intrusive-related mineralizing system extending beyond the known skarn.

Skarn mineralization commonly develops where hydrothermal fluids associated with intrusive systems react with favourable host rocks, particularly carbonate-rich units such as limestone and marble. As a result, skarn occurrences can provide an important vector toward the intrusive source of a mineralizing system, including porphyry-style or other intrusion-related systems. At Birch, the relationship between the known skarn mineralization and the broader intrusive footprint is therefore an important part of the evolving exploration model.

Approximately two kilometres south of the drilled skarn area, previous exploration identified a coincident combination of elevated molybdenum-in-soil geochemistry, anomalous gold-silver-copper surface samples, mapped intrusive rock and a magnetic high corresponding with a low potassium/thorium ratio zone in the radiometric data. Select rock samples collected in 2025 (news release dated Dec. 8, 2025) returned values of up to 16 g/t gold, 1,825 g/t silver and 0.43 per cent copper from this broader southern target area.

The 2026 IP survey was designed to add subsurface information to this developing exploration model and to test for chargeable features beneath the intrusive target. A total of 12.7 line kilometres of 2-D IP surveying was completed at Birch across four principal north-south survey lines and an east-west tie line. The principal lines were spaced approximately 300 metres apart.

Induced polarization and electrical resistivity are measured together in the same survey by passing an electrical current through the ground and recording how the rock responds. Resistivity reflects how readily current flows through the rock, and can distinguish between rock types, alteration and structures; chargeability -- the IP response -- measures how briefly the ground holds an electrical charge after the current is switched off, a property that is generally elevated where disseminated sulphide minerals are present.

Granodiorite intrusions and marble/limestone act like electrical insulators that resist current flow and show up as high-resistivity bodies, while schist is lower resistivity. The sulphide-bearing zones, such as skarn with pyrrhotite and chalcopyrite, and porphyry potassic zones hold an electrical charge that creates chargeability anomalies. Because sulphides are commonly associated with the metals of interest in porphyry and skarn systems, chargeability anomalies are used to identify prospective zones for drilling.

The 2-D inversion sections identified chargeability responses across the survey grid. At the north end of the grid a chargeability anomaly is observed across multiple survey lines; this target was tested by one drill hole during the 2026 program, with results pending. In the southern portion of the grid, a separate chargeability anomaly is present to varying degrees on all four principal survey lines at approximately 400 metres below surface. An increased chargeability response is also observed on the east-west tie line, although at lower amplitude than on the principal lines.

The IP interpretation also notes that strong chargeability responses occur locally along the edge of resistive features. Aurora Geosciences Ltd., which completed the company's Birch IP survey, noted that this relationship may warrant further investigation in a skarn-style geological setting where mineralization is commonly developed at the contact between intrusive rocks and reactive host rocks.

Together, the surface geochemistry, geology, magnetic response and new IP data provide multiple independent data sets for evaluating the broader mineralizing system south of the known skarn. One of the identified IP targets was tested during the 2026 drill program, with results pending.

IP survey methodology

The Birch IP survey was completed by Aurora Geosciences in June, 2026. The survey comprised 12.7 line kilometres using an in-line proximal pole-dipole configuration. Four north-south principal lines were completed at approximately 300-metre spacing, together with an east-west tie line. Nominal dipole spacing was 100 metres, with nominal current injection spacing of 50 metres.

The survey utilized IRIS V-Fullwaver receivers and a GDD TX IV 5.0-kilowatt IP transmitter. Data was collected in the time domain using a 0.125-hertz reversing-polarity waveform and 20 chargeability windows following a 40-millisecond delay.

The survey configuration was designed to provide investigation depths of up to approximately 1,200 metres on the principal lines and 750 metres on the tie line, although effective investigation depth varies depending on subsurface electrical properties and data quality. Data quality at Birch was generally good. Of approximately 3,300 measurements, about 3 per cent of resistivity readings and 7 per cent of chargeability readings were removed during quality-control processing due to poor decay curves, elevated error values or unreasonable results. Line 3 contained a higher proportion of rejected chargeability measurements than the other lines and has been interpreted with consideration of observations from neighbouring lines and the tie line.

Next steps

Yukon Metals is continuing to integrate the Birch IP results with geological mapping, soil and rock geochemistry, magnetic data ,and drilling. Follow-up mapping and prospecting in August, 2026, refined the southern intrusive contact and identified molybdenite and local copper-bearing mineralization within the granodiorite, with alteration and veining increasing slightly along its northern contact. Garnet-pyroxene skarn boulders were also identified near the intrusive contact, supporting continued evaluation of the area for skarn-style mineralization. Pending assay and hyperspectral results from this work will be incorporated with the geophysical data to refine priority areas for further mapping, sampling, IP and future drill targeting.

About the Birch project

Birch is a 7,000-hectare copper-gold exploration property located in Western Yukon, approximately 65 kilometres northeast of Burwash Landing. The 100-per-cent-owned, helicopter-accessed property represents an emerging copper-gold exploration opportunity within Yukon Metals' broader Yukon portfolio, with multiple target areas identified across the project. Exploration to date has outlined skarn-style copper-gold mineralization, while geological, geochemical and geophysical work suggests the potential for additional epithermal and porphyry-style mineralized systems.

Building on the 2025 program, which included 1,685 metres of HQ diamond drilling in six holes and established a broad copper-gold skarn footprint at Birch, Yukon Metals' 2026 exploration program included approximately 2,600 metres of additional diamond drilling, 12.7 line kilometres of IP surveying, and follow-up geological mapping and rock sampling across priority target areas.

About Yukon Metals Corp.

The Yukon Metals portfolio was built on more than 30 years of prospecting by the Berdahl family, the prospecting team behind Snowline Gold Corp.'s portfolio. The portfolio consists primarily of copper-gold projects, with substantial exposure to tungsten. Additional portfolio assets include gold, silver and lead-zinc polymetallic properties.

The company is well financed and led by an experienced board of directors and management team across technical and financial disciplines. Yukon Metals is focused on fostering sustainable growth and prosperity within Yukon's local communities, while simultaneously enhancing stakeholder value. The company's strategy centers around inclusivity and shared prosperity, offering both community members and investors the chance to contribute to, and benefit from, its ventures.

Yukon

The Yukon Territory is an underexplored and minerally endowed district with a mining history dating back to the Klondike Gold Rush of 1898. With a progressive permitting regime, geopolitical stability and supportive government, it is well positioned to foster the next generation of mines. The Yukon is host to a highly experienced and conscientious local work force, fostered by a long culture of exploration coupled with deep respect for the land. Recent major discoveries with local roots such as Snowline Gold Corp.'s Rogue project -- Valley Discovery, demonstrate the Yukon's potential to generate fresh district-scale mining opportunities.

Qualified person

The technical content of this news release has been reviewed and approved by Helena Kuikka, PGeo, vice-president, exploration, for Yukon Metals and a qualified person (as defined by National Instrument 43-101).

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