Canary Gold Corp. Receives Follow-Up Technical Observations for Rio Madeira Project

Vancouver, British Columbia — June 25, 2026 — Leads & Copy — Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has received additional technical observations and recommendations from geologist-engineer Clara Maria Lamus Molina, a specialist in alluvial gold deposits, regarding its Rio Madeira project in Brazil. This follows up on a June 10, 2026 news release and aims to provide a roadmap for advancing the project.

Ms. Molina’s review supports Canary Gold's view that Rio Madeira is a prospective large-scale alluvial exploration target. The next steps will focus on validating paleochannel geometry, gravel continuity, recoverable gold content, and volumetric grade. Her work is intended to guide the company in generating systematic, representative, and auditable technical data.

Canary Gold believes this review is a crucial step in positioning the Madeira River Project for future exploration milestones, including the potential for a National Instrument 43-101 compliant mineral resource estimate, contingent on continued exploration success, further drilling, representative sampling, quality assurance/quality control (QA/QC), recovery testing, and geological modeling.

Key indicators and technical priorities highlighted by Ms. Molina include observed active alluvial gold mining and visible free gold within the broader Madeira River system. While these observations offer regional geological context, they are not necessarily indicative of mineralization on the company’s property. Other findings include favorable gravel intervals, geomorphological features consistent with alluvial plains and paleochannels, and the identification of paleochannels and coarse-gravel systems as priority targets for gold concentration.

Ms. Molina recommended sonic drilling as a preferred validation tool in priority target areas. She also advised on recovered-volume control for evaluating gold content on a volumetric basis, and the implementation of standardized logging, granulometry, gold-particle classification, QA/QC, and chain-of-custody procedures. Geological-volumetric modeling was identified as a key step towards future resource readiness.

Recent deeper drilling, as announced on June 10, 2026, intersected mature coarse sediments, including gravels and sands, supporting the company's interpretation of a large-scale paleochannel system associated with the Madeira River.

Mark Tommasi, President of Canary Gold, stated that Rio Madeira exhibits characteristics common to alluvial gold systems, such as interpreted paleochannel targets and favorable gravel horizons. He emphasized that the next phase requires disciplined validation and that Ms. Molina’s review provides a clear technical pathway.

Mr. Tommasi further explained that alluvial gold systems differ from conventional hard-rock deposits and are typically evaluated on a volumetric basis, considering factors like paleochannel size and continuity, gravel thickness, recoverable gold content, stripping ratio, processing efficiency, and throughput. The company's objective is to define the channel, measure the gravel, validate the grade, test recovery, and build a comprehensive database.

Alluvial, or placer, gold systems form when gold is liberated from source rocks, transported by rivers, and concentrated in sedimentary environments like gravels, sand bars, terraces, and paleochannels. Canary Gold's exploration model at the Madeira River Project focuses on identifying preserved paleochannel and high-energy gravel environments where gold may have been concentrated and preserved.

The company views the Madeira River Project as an early-stage alluvial gold exploration project with multiple targets requiring validation. The immediate objective is to transition from preliminary observations to representative, auditable data to support future technical and investment decisions.

A central recommendation from Ms. Molina is the use of sonic drilling, which is well-suited for unconsolidated alluvial environments as it can improve sample recovery, preserve stratigraphic relationships, reduce contamination, and support accurate measurement of recovered sample volume. These factors are critical for alluvial gold exploration due to potentially irregular gold distribution.

Future work is expected to concentrate on systematic sonic drilling in priority areas, detailed geological logging, recovered-volume measurement, controlled sample processing and gravity concentration, gold-particle recovery and classification, laboratory validation, robust QA/QC procedures, and geological-volumetric modeling.

Canary Gold has also reviewed mature alluvial gold systems, such as the Nechí alluvial gold system in Colombia, as a technical benchmark for advancing alluvial discoveries. The company cautions that Nechí is not directly comparable to Rio Madeira, is materially more advanced, and is referenced solely to illustrate the technical discipline required for alluvial system evaluation and advancement.

The company is currently reviewing budgets, logistics, access, and sequencing for a priority sonic-drilling and sample-processing program at the Madeira River Project. Investors are cautioned that exploration is at an early stage, no mineral resource has been defined, and there is no assurance that exploration will result in an economic mineral deposit. Geological interpretations are subject to further validation.

The scientific and technical information in this news release has been reviewed and approved by Andrew Lee Smith, P.Geo., a Qualified Person as defined by National Instrument 43-101. Mr. Smith serves as Executive Chairman of Canary Gold Corp. and is not independent of the Company.

Canary Gold Corp. is a Canadian exploration company focused on gold projects in Brazil. The company holds an option to earn an interest in the Rio Madeira Project and has entered into an agreement to acquire ten additional mineral tenements totaling approximately 94,700 hectares. These interests provide Canary Gold with a significant land position in the Madeira River region of Rondônia State.

Source: Canary Gold Corp.