Red Canyon Resources arranges $2.2-million financing

Aug 27, 2025

2025-08-26 14:58 ET – News Release

Mr. Wendell Zerb reports

RED CANYON ANNOUNCES NON-BROKERED CHARITY FLOW-THROUGH FINANCING WITH LEAD ORDER FROM STRATEGIC INVESTOR

Red Canyon Resources Ltd. has arranged a non-brokered private placement of charity flow-through common shares to raise gross proceeds of up to $2.2-million. The company proposes to issue up to 8,088,235 flow-through common shares of the company at a price of 27.2 cents per charity FT share to corporate, institutional, professional and sophisticated investors.

The lead order underlying the charity FT offering is a commitment from a multinational mining corporation to acquire a 9.9-per-cent equity interest in the company through the purchase of approximately six million common shares, which will raise approximately $1,632,000 in charity flow-through funds.

Each charity FT share will qualify as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada).

The issue price represents a 94-per-cent premium to the last closing price of Red Canyon’s common shares trading on the Canadian Securities Exchange as of Aug. 25, 2025.

The charity FT offering will be facilitated by PearTree Securities Inc. PearTree will not receive any fees or commissions from the company for its role in the charity FT offering.

The proceeds from the charity FT offering will be used to incur eligible Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures as both terms are defined in the tax act related to the company’s Kendal project and other projects in British Columbia, on or before Dec. 31, 2026, and the company will renounce all the qualifying expenditures in favour of the subscribers of the charity FT shares effective Dec. 31, 2025. The flow-through critical mineral mining expenditures will be eligible for a federal 30-per-cent investment tax credit for any eligible individual investors and, for any individual investor who is resident or subject to tax in the province of British Columbia, the qualifying expenditures will also be eligible for the 20-per-cent additional tax credit under the Income Tax Act (British Columbia).

The charity FT offering is expected to close on Sept. 18, 2025, and is subject to certain conditions, including, but not limited to, the approval of the CSE, and receipt of all required regulatory and other approvals.

No finders’ fees are expected to be paid in connection with the charity FT offering.

All securities issued will be subject to a statutory hold period of four months and one day.

About the Kendal project

The Kendal copper project is in west-central British Columbia, approximately 25 kilometres (km) northeast of the city of Terrace.

In the fall of 2024, Red Canyon completed the first-ever drill program on the project. Five drill holes tested the northwestern area of a large 2.5 by 1.5 km porphyry related alteration zone. Each drill hole was significantly hydrothermally altered with associated multiple phases of quartz/sulphide stockwork veining. Drill holes were variably mineralized with copper and moly throughout. In 2025, vectoring studies to identify the core areas of the Kendal porphyry system included detailed vein density/alteration mapping and lithogeochemistry. In addition, a recently completed mobile MT geophysical survey identified a four km by three km, southwest-to-northeast-trending series of elevated conductive rocks, significantly expanding the potential foot print of the mineral system.

About the Inzana project

The Inzana project area (Osiris and Acheron projects) in central British Columbia is host to a series of altered, mineralized porphyry intrusions with historical exploration results suggesting potential for multiple copper-gold porphyry centres. At the Camp zone at Osiris, historical drill hole 91-2 returned 0.18 per cent copper plus anomalous gold over 127.4 metres (m). The company interprets this intercept as being located peripheral to the central part of a porphyry system. The Tez zone at Acheron sits at the northern end a large northwest-trending magnetic high spanning 10 km by 2.5 km. Tez is defined by complex magnetics, rock and soil geochemistry, and shallow historical drilling. The target area remains open to test for the core of a copper-gold porphyry system.

About the Scraper Springs project

The company’s 100-per-cent-owned Scraper Springs copper project in northern Nevada hosts a four by four km alteration footprint comparable in scope with some of the world’s largest copper deposits.

The company recently completed expanded geophysics, including IP (induced polarization), gravity and magnetic inversion work. These studies, together with expanded geology, geochemistry and hyperspectral studies, have outlined a potential Tier 1 copper target at Scraper Springs.

About Red Canyon Resources Ltd.

Red Canyon is a technically driven, discovery-focused mineral exploration company focused on exploring North America’s top copper jurisdictions. The company’s core goal is to make impactful copper discoveries to benefit all stakeholders. Red Canyon has a portfolio of 100-per-cent-owned copper and copper-gold porphyry exploration projects. The company’s priority copper projects include the Kendal copper project in west-central British Columbia, the Inzana copper-gold project in central B.C. and its Scraper Springs copper project in northeastern Nevada. The company’s technical team consists of experienced geoscientists with diverse capital market, junior and major mining company backgrounds, and a record of success.

Red Canyon is part of the NewQuest Capital Group, which is a discovery-driven investment group that builds value through the incubation and financing of mineral projects and companies.

Qualified person

The technical information contained in this update has been reviewed and approved by Wendell Zerb, PGeol, a qualified person (QP) as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Mr. Zerb is not independent by reason of being the chairman, president and chief executive officer of the company.

We seek Safe Harbor.

https://www.redcanyonresources.com/