Mr. Chris Donaldson reports

VALKEA COMPLETES OPTION OF LEGACY AUSTRALIAN PROPERTIES TO S2 RESOURCES

Valkea Resources Corp. has completed the grant of an option (the YBWSS option) on its Yuengroon, Ballarat West and Silver Spoon projects located in Australia to S2 Resources Corp., as previously announced on Dec. 4, 2024. Pursuant to the YBWSS option, S2 can earn an 80-per-cent interest in the Yuengroon, Ballarat West and Silver Spoon projects by sole-funding total expenditures of $1.2-million (Australian) within four years.

The company also announces that it has granted S2 an option (the Glenfine option and, together with the YBWSS option, the options) on its Glenfine project located in Australia. Pursuant to the Glenfine option, S2 can earn a 51-per-cent interest in the Glenfine project by sole-funding total expenditures of $200,000 (Australian) within four years.

Upon exercise of the YBWSS option, S2 will hold an 80-per-cent interest in the Yuengroon, Ballarat West and Silver Spoon projects, and Valkea will retain a 20-per-cent interest. Upon exercise of the Glenfine option, S2 will hold a 51-per-cent interest in the Glenfine project, and the current Glenfine partners will retain a 49-per-cent interest. If a party's joint venture interest is diluted below 10 per cent, it will automatically convert to a 2-per-cent net smelter return royalty.

The company and S2 had previously entered into a letter of intent dated Feb. 28, 2024 (the LOI), with respect to the options. The terms of the definitive agreements governing the options are consistent with the terms of the LOI.

The options were approved by disinterested shareholders of the company at a special meeting held on Sept. 3, 2024. Approval by disinterested shareholders satisfied TSX-V requirements and the minority shareholder approval requirement of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101), both of which were applicable due to S2 being a related party of the company by virtue of S2 being an insider of the company. The company is exempt from the formal valuation requirements of MI 61-101 contained in sections 5.5(a) of MI 61-101 on the basis of the exemption contained in Section 5.5(b) of MI 61-101 as the company's common shares are not listed on a specified market.

DSU (deferred share unit) grant to non-executive directors

The company also announces the grant of an aggregate of 98,750 DSUs to its non-executive directors at a deemed price of 40 cents per DSU. These DSUs were granted in consideration for services rendered by the directors for the quarter ended Dec. 31, 2024, and are priced based on the closing price of the company's shares on March 3, 2024.

About Valkea Resources Corp.

Valkea Resources is at the forefront of gold exploration in Finland's highly prospective Central Lapland greenstone belt. With an extensive portfolio of high-potential projects, including the flagship Paana project, Valkea Resources is committed to discovering and advancing significant gold deposits in one of the world's emerging gold districts.

We seek Safe Harbor.