Vancouver, British Columbia – TheNewswire - May 19, 2026 - Grafton Resources Inc. (CSE:GFT; OTCQB: GFTFF) (FSE: K8L0) (“Grafton” or the “Company”) is pleased to announce that it has entered into a non-binding letter of intent (the “LOI”) with Newmont USA Limited (“Newmont”) regarding the Company’s proposed acquisition of two gold-focused exploration projects (the “Projects”) located in Chile (the “Proposed Acquisition”).

The Company anticipates that the Proposed Acquisition, if completed, would further strengthen Grafton’s exploration portfolio in Chile and complement its existing regional land position.

Management believes the Projects demonstrate attractive geological characteristics and provide potential operational and exploration synergies with nearby properties currently held by the Company. Grafton considers the broader district to be highly prospective and believes the consolidation of strategically located concessions may enhance future exploration planning and regional-scale targeting opportunities.

The parties intend to negotiate and enter into a definitive agreement (the “Definitive Agreement”) in respect of the Proposed Acquisition. Entry into the Definitive Agreement is subject to satisfactory tax, corporate and securities law advice for each of the Company and Newmont. Completion of the Proposed Acquisition remains subject to a number of conditions, including completion of due diligence, negotiation and execution of definitive documentation, and receipt of all necessary corporate and regulatory approvals, including the approval of the Canadian Securities Exchange (the “CSE”). The LOI does not create a binding obligation on either party to complete the Proposed Acquisition, except with respect to certain customary binding provisions.

Campbell Smyth, Chief Executive Officer of Grafton, commented: “We are very pleased to have reached this stage. The Proposed Acquisition aligns with Grafton’s strategy of building a strong district-scale position in prospective mineral belts within Chile. We believe the Projects may offer compelling geological and operational synergies with our existing land holdings, and we look forward to advancing discussions toward a Definitive Agreement.”

Further details regarding the Proposed Acquisition will be disclosed in due course as material developments occur, in accordance with applicable securities laws and the policies of the CSE. Newmont is an arm’s length party to the Company.

The CSE has not in any way passed upon the merits of the matters referenced herein and has neither approved nor disapproved the contents of this news release.

About Grafton Resources

Grafton Resources is a Canadian exploration company listed on the Canadian Securities Exchange (CSE), focused on the discovery and development of mineral assets in the Americas. The Company is committed to responsible exploration, strong community partnerships, and generating shareholder value through disciplined project advancement.

On behalf of Grafton Resources.

Campbell Smyth
Interim Chief Executive Officer, Chairman and Director

For further information, please contact:

Campbell Smyth
csmyth@graftonresources.com
+61403203402

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This news release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements that relate to the Proposed Acquisition, potential mineralization at the Projects, future exploration plans on the Projects and the timing and results of future exploration..

Statements contained in this release that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of the Company. Such statements can generally, but not always, be identified by words such as "expects", "plans", "anticipates", "intends", "estimates", "forecasts", "schedules", "prepares", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. All statements that describe the Company's plans relating to operations and potential strategic opportunities are forward-looking statements under applicable securities laws. These statements address future events and conditions and are reliant on assumptions made by the Company's management, and so involve inherent risks and uncertainties, as disclosed in the Company's periodic filings with Canadian securities regulators, including without limitation, risks related to the completion of the Proposed Acquisition; the dangers inherent in exploration, development and mining activities; actual exploration or development plans and costs differing materially from the Company’s estimates; the ability to obtain and maintain any necessary permits, consents or authorizations required for mining activities; environmental regulations or hazards and compliance with complex regulations associated with mining activities; climate change and climate change regulations; fluctuations in exchange rates; the availability of financing; operations in foreign and developing countries and the compliance with foreign laws, remote operations and the availability of adequate infrastructure; fluctuations in price and availability of energy and other inputs necessary for mining operations; shortages or cost increases in necessary equipment, supplies and labour; regulatory, political and country risks, including local instability or acts of terrorism and the effects thereof; the reliance upon contractors, third parties and joint venture partners; challenges to title or surface rights; the dependence on key personnel and the ability to attract and retain skilled personnel; the risk of an uninsurable or uninsured loss; adverse climate and weather conditions; litigation risk; and competition with other mining companies. As a result of these risks and uncertainties, and the assumptions underlying the forward-looking information, actual results could materially differ from those currently projected, and there is no representation by the Company that the actual results realized in the future will be the same in whole or in part as those presented herein. the Company disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the additional information regarding the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. For more information on the Company and the risks and challenges of its business, investors should review the Company's filings that are available at www.sedarplus.ca.

The Company provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company does not undertake to update any forward looking statements, other than as required by law.