Mr. Mike Stier reports

SAGA METALS PROVIDES CORPORATE UPDATE AND 2024 YEAR IN REVIEW

Saga Metals Corp. has provided a corporate update and review of key activities and achievements from 2024.

Key corporate highlights from 2024

• Saga's IPO (initial public offering): On Sept. 23, 2024, the company completed its IPO and commenced trading the following day on the TSX Venture Exchange under the symbol SAGA. The company raised gross proceeds of $1,758,500 and completed a subsequent raise under the prospectus for $1,116,460.68 for total gross proceeds of $2,874,960.68.
• Option to joint venture with Rio Tinto: Saga executed an option agreement with Rio Tinto's subsidiary, Rio Tinto Exploration Canada (RTEC). RTEC has the option to acquire an initial 51-per-cent interest of Saga's Legacy lithium project in Quebec by incurring $9,571,100 in exploration expenditures over four years on the property among satisfying other conditions. Additionally, RTEC has the option to increase its interest to 75 per cent by incurring $34,182,500 over a subsequent five-year period.
• Preparations made for maiden drill program at Double Mer uranium project: Saga's exploration team pinpointed three key zones along an 18-kilometre uranium-rich trend. Within each zone, the team identified high-potential uranium with U3O8 (triuranium octoxide) mineralization occurring in pegmatites and structurally enriched formations. Count-per-second readings reached all-time highs of 22,000 counts per second in an outcrop and 27,000 counts per second in a subrounded boulder. The consistent U3O8 grades confirmed in the 2024 program found throughout pegmatite intrusions along the 18-kilometre trend are particularly encouraging for large-tonnage resource potential. Drilling is scheduled to begin in early 2025, with an initial minimum of 1,500 metres over the Luivik zone in the west.
• Drill-ready targets at Radar titanium-vanadium project confirmed: After completing only the second program at the titanium-vanadium property, Saga has been able to bring this project to drill-ready status. The Hawkeye zone has revealed itself as a textbook titanium-vanadium-enriched layered mafic intrusion and the project has the potential for multiple parallel structures. The Hawkeye zone confirmed high-grade mineralization, with samples returning 2.5 per cent to 11.1 per cent TiO2 (titanium dioxide) and 0.2 per cent to 0.66 per cent V2O5 (vanadium pentoxide). Geophysical surveys suggest the Hawkeye zone's potential width has increased from 500 metres to one kilometre and, combined with the surface sampling, has an inferred four-kilometre mineralized strike.
• High-grade iron ore potential at North Wind: Iron content (Fe2O3 (iron oxide)) in samples from the Sokoman formation ranges from 4.88 per cent to 84.57 per cent, with the highest grades concentrated in the middle and lower iron formation members, spanning an impressive 600 metres to 700 metres in combined width and trending four kilometres northwest-southeast.
• Exploration budget secured for Amirault lithium project: The company recently completed a flow-through offering, securing $300,000 for an exploration program at the Amirault lithium project between Q2 and Q3 2025 focused on mapping, sampling and prospecting across the 31,347.76 hectares. This project is contiguous to Saga's Legacy lithium project, which is subject to the option to joint venture with Rio Tinto.

Saga's project overview -- four 100-per-cent-owned projects in top mining jurisdictions

1. Double Mer uranium project -- Labrador, Canada

The Double Mer uranium project is Saga Metals' flagship project, covering 1,024 claims across 25,600 hectares in eastern-central Labrador, approximately 90 kilometres northeast of Happy Valley-Goose Bay. Leveraging significant historical exploration data, Saga's exploration team validated and built upon the company's understanding of the project's potential. Work in 2024 has refined the understanding of the targets within key zones, specifically supporting the decision to initiate a minimum 1,500-metre drill program at the Luivik zone in Q1 2025.

Saga sees the Double Mer uranium project as a promising addition to the significant uranium projects already established in Labrador's Central Mineral Belt (CMB), including Paladin Energy's Michelin and Atha Energy's CMB discovery. With encouraging surface samples and geophysical data, Saga believes Double Mer could offer comparable large-tonnage uranium potential.

Diverse mineralization styles offer exploration upside

The 2024 Double Mer field program identified three styles of uranium mineralization across the 18-kilometre trend on the property:

1. Mineralized granitic pegmatites, rich in uranophane and containing petrographic evidence of uraninite associated with biotite-rich zones;
2. Sheared pegmatites and gneissic rocks, showing high count-per-second readings and uranophane staining in biotite-rich areas.
3. IOCG-style (iron oxide copper/gold) mineralization, characterized by iron carbonate staining and sheeted smokey quartz veins parallel to foliation.

Michael Garagan, chief geological officer and director of Saga Metals, commented: "What should be noted as the most significant concept of the 2024 field program results is that we have economic U3O8 (per cent) in the channels from 0.015 to 0.062 per cent U3O8 in pegmatites which strike 18 kilometres. We have higher-grade rock samples mapped in the areas among these channel samples showing the opportunity for more anomalous intercepts. The field mapping, combined with uranium count radiometrics, demonstrates that these pegmatites can be up to 500 metres wide in places and often averaging 200 to 300 metres in width. This is the recipe we need to identify significant tonnage and that's where a systematic method to drilling can pay off. What's exciting about the Double Mer project is that we don't need to overspend on a drilling strategy that focuses on chasing high grades. We just need to methodically test these zones across strike step by step and with that will come the more exciting intercepts which can bolster composites and potentially the necessary data to support large tonnage."

2. Legacy lithium project -- Quebec, Canada

The Legacy lithium project spans 34,243 hectares, located in Quebec's renowned Eeyou Istchee James Bay region, as is subject to the option to joint venture agreement with Rio Tinto's subsidiary, Rio Tinto Exploration Canada (RTEC).

Rio Tinto partnership: Under the option agreement, RTEC has the option to acquire a 51-per-cent interest in Saga's Legacy lithium project over four years if it meets the following conditions:

• $410,190 cash payment to Saga (received by Saga in August, 2024);
• $9.57-million in exploration spending, with at least $1.71-million committed within the first 20 months;
• Annual cash payments of $68,365 (totalling $273,460) and additional payments of $225,000 for claim acquisitions owed by Saga to the original property vendors.

Once RTEC earns the initial 51-per-cent interest, it has the option to increase its stake to 75 per cent over five more years by spending an additional $34.18-million on exploration. RTEC will oversee the project during both the first and second option periods, and a joint technical committee will plan the exploration programs.

The Legacy lithium project covers 100 kilometres of striking paragneiss situated in a region known for lithium discoveries, including Winsome Resources' Adina project, Loyal Lithium's Trieste project and Rio Tinto's Galinee project.

Rio Tinto recently became one of the largest producers of lithium in the world with the approved takeover of Arcadium Lithium. On Dec. 23, 2024, Arcadium Lithium announced its shareholders had approved the proposed Rio Tinto transaction of an all-cash deal for $5.85 per share. The transaction represents a premium of 90 per cent to Arcadium's closing price of $3.08 per share on Oct. 4, 2024, a premium of 39 per cent to Arcadium's volume-weighted average price (VWAP) since Arcadium was created on Jan. 4, 2024, and values Arcadium's diluted share capital at approximately $6.7-billion.

In Q1 2025, Saga anticipates providing an update on RTEC's exploration activities in 2024 and an outline of its plans for further exploration in 2025.

Amirault lithium project -- Quebec, Canada

In Q2 2024, the company announced an asset purchase agreement to acquire a 100-per-cent interest in 606 mining claims covering an area of 31,347.76 hectares in the Eeyou Istchee James Bay region of Quebec known as the Amirault lithium project.

The project is contiguous to Saga's Legacy lithium project, expanding the total contiguous landholdings to 1,274 claims spanning 65,849.20 hectares (658 square kilometres). The acquisition increases the company's foothold on the striking paragneiss, all of which can be considered prospective for pegmatites following the discovery trend of Winsome Resources, Azimut Exploration, Rio Tinto and Loyal Lithium.

The company recently completed a flow-through offering, securing $300,000 for an exploration program at the Amirault lithium project between Q2 and Q3 2025 focused on mapping, sampling and prospecting across the 31,347.76 hectares.

3. Radar titanium-vanadium project -- Labrador, Canada

The Radar titanium-vanadium property is located 10 kilometres south of Cartwright in Labrador, Canada. The project spans 17,250 hectares and benefits from road access, supporting efficient exploration and development.

The 2024 Radar titanium-vanadium exploration program focused on expanding prospecting, geological mapping and soil sampling in areas near previously identified geophysical anomalies. These efforts have produced encouraging results that reinforce Radar's potential for hosting significant titanium and vanadium mineralization.

Key total database assay highlights include:

• Titanium dioxide (TiO2) -- 49 samples returned assay values exceeding 4.0 per cent, with a peak value of 11.1 per cent;
• Vanadium pentoxide (V2O5) -- 36 samples exceeded 0.2 per cent, with a high of 0.66 per cent;
• Iron (Fe) -- 34 samples returned values over 20 per cent, reaching a high of 46.7 per cent.

Fieldwork in 2024 focused on identifying new zones across the property and confirmed the potential for three parallel zones hosting significant electromagnetic anomalies, now named:

1. Hawkeye zone;
2. Trapper zone;
3. Unnamed transitional zone (between Hawkeye and Trapper).

The Hawkeye zone is the most prospective target on the property. Detailed geophysics and surface samples are suggestive of a complex and phased layered mafic intrusion that may be upward of one kilometre wide and four kilometres long. Recent geophysics completed on the property show very detailed correlation to the rock samples and observed phase changes in the system.

4. North Wind iron ore project -- Labrador, Canada

The North Wind iron ore property, located 16 kilometres southwest of Schefferville, Que., within the prolific Labrador Trough, represents a secondary but high-potential asset within Saga Metals' portfolio. The Labrador Trough, an extensive 1,100-kilometre suite of Proterozoic rocks, is renowned for hosting world-class iron ore deposits and is a major hub for iron ore exploration.

The North Wind property spans 6,375 hectares across 255 claim blocks under a single licence. Its geological framework holds significant potential, reinforced by a portion of a historical resource estimate (National Instrument 43-101 compliant) completed in 2013 by New Millennium Iron.

Historical exploration at North Wind includes data from eight drill holes, which averaged 20.74 per cent total iron content over 590 metres drilled. Notably, the Lower Red Green Chert (LRGC), a key stratigraphic unit within the property, returned an average grade of 24.76 per cent iron across 277 metres drilled and was intercepted in all eight holes. This LRGC unit forms part of the Sokoman formation's Lower Iron Formation, a high-priority target confirmed by both New Millennium Iron and Saga's exploration team.

As part of routine claims maintenance, Saga conducted a comprehensive field program at the North Wind iron ore property in the summer of 2024. A total of 24 rock samples were collected, accompanied by key geological observations. The Sokoman formation formed the core focus of exploration. This formation is subdivided into three stratigraphic members based on the following assay iron content (Fe2O3):

• Upper iron member: 4.88 per cent to 33.43 per cent Fe2O3;
• Middle iron member: 47.44 per cent to 60.43 per cent Fe2O3;
• Lower iron member: 13.31 per cent to 75.06 per cent Fe2O3.

The 2024 field program confirmed a four-square-kilometre northwest-southeast mineralization trend with combined surface thickness of the mineralized zones ranging from 600 metres to 700 metres, underlining the project's scale and high-grade potential.

Mike Stier, chief executive officer and director of Saga Metals, commented: "As 2024 saw the completion of ground truthing across multiple projects, 2025 will be concentrated on drilling. We are proud of the hard work accomplished this past year and look forward to taking this data into 2025 and accelerating our understanding of our portfolio of projects. Completing our IPO was pivotal for the company and sets the stage for increased funding sources as we aim to garner drill results during Q1/Q2 2025."

Digital marketing services agreement with Machai Capital Inc.

The company further reports that it entered into a digital marketing services agreement dated Jan. 2, 2025, with Machai Capital. Pursuant to the marketing agreement, Machai will, among other things, provide the company with certain marketing services to expand investor awareness of the company's business and to communicate with the investment community.

The services will include, among other things: (i) branding, content and data optimization to assist the company to create in-depth marketing campaigns; (ii) tracking, organizing and executing the services through search engine optimization, search engine marketing, lead generation, digital marketing, social media marketing, e-mail marketing and brand marketing. In consideration of the services, and pursuant to the terms and conditions of the marketing agreement, the company has agreed to pay Machai a fee of 140,000 euros (plus applicable taxes) over a 31-day term.

The services will be rendered primarily on-line through a variety of news and investment community communications channels. Suneal Sandhu, the president of Machai, located at Suite 101, 17565 58 Ave., Surrey, B.C., V3S 4E3, and contacted at 1-604-375-0084 and suneal@machaicapital.com, will be involved in conducting the promotional activity. Machai and Mr. Sandhu do not currently own any common shares or common share derivatives in the capital of the company.

About Saga Metals Corp.

Saga Metals is a North American mining company focused on the exploration and discovery of critical minerals that support the global transition to green energy. The company's flagship asset, the Double Mer uranium project, is located in Labrador, Canada, covering 25,600 hectares. This project features uranium radiometrics that highlight an 18-kilometre east-west trend, with a confirmed 14-kilometre section producing samples as high as 4,281 parts per million U3O8 and spectrometer readings of 22,000 counts per second.

In addition to its uranium focus, Saga owns the Legacy lithium property in Quebec's Eeyou Istchee James Bay region. This project, developed in partnership with Rio Tinto, has been expanded through the acquisition of the Amirault lithium project. Together, these properties cover 65,849 hectares and share significant geological continuity with other major players in the area, including Rio Tinto, Winsome Resources, Azimut Exploration and Loyal Lithium.

Saga also holds secondary exploration assets in Labrador, where the company is focused on the discovery of titanium, vanadium and iron ore. With a portfolio that spans key minerals crucial to the green energy transition, Saga is strategically positioned to play an essential role in the clean energy future.

Qualified person

Peter Webster, PGeo, chief executive officer of Mercator Geological Services Ltd., is an independent qualified person as defined under NI 43-101 and has reviewed and approved the technical information related to the Double Mer uranium project, the Radar titanium-vanadium project and the North Wind iron ore project disclosed in this news release.

We seek Safe Harbor.