Labrador Announces Proposed Consolidation

CALGARY - Labrador Resources Ltd. ("Labrador" or the "Company") (TSXV:LTX) announces that it has mailed an information circular pertaining to an annual and special meeting of shareholders ("ASGM") of the Company to be held on January 14, 2026. At the ASGM, the shareholders of the Company will be asked to approve a consolidation (the "Consolidation") of the common shares of the Company (the "Common Shares") on the basis of one (1) post-consolidation Common Share (each a "Post-Consolidation Share") for up to every three (3) pre-consolidation Common Shares (the "Pre-Consolidation Shares") with the final Consolidation ratio to be determined by the board of directors of the Company (the "Board"). It is not expected that there will be a change of name in relation to the Consolidation.

The Company currently has 24,672,144 issued and outstanding Common Shares. No action will be required by shareholders to give effect to the Consolidation, if approved by the Company's shareholders and the Board decides to proceed with a Consolidation. Each stock option, warrant, right or other security of the Company that is convertible into Common Shares (the "Convertible Securities") that has not been exercised or cancelled prior to the effective date of the implementation of a Consolidation will be adjusted pursuant to the terms thereof on the same exchange ratio as a Consolidation.

No fractional shares will be issued as a result of a Consolidation. Any fractional Post-Consolidation Shares to which a holder of such shares would otherwise be entitled shall be rounded up to the next greater whole number of Post-Consolidation Shares if the fractional entitlement is equal to or greater than 0.5 and shall be rounded down to the next lesser whole number of Post-Consolidation Shares if the fractional entitlement is less than 0.5.

The Board and management of the Company believe that the anticipated higher share value resulting from a Consolidation may benefit Labrador on a go forward basis by generating greater investor interest, attracting equity financing and by potentially increasing liquidity for shareholders.

A further news release will be issued in the event a Consolidation receives shareholder approval and if so, whether such Consolidation proceeds. Implementation of a Consolidation remains subject to the approval of the TSX Venture Exchange.

Further details regarding the Consolidation are described in the Company's management information circular dated December 10, 2025 which is available on www.sedarplus.ca.

About Labrador

Labrador's Common Shares are listed on the TSX-V under the symbol "LTX". More information on Labrador may be viewed on www.sedarplus.ca.

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, the Company's ability to obtain necessary approvals from the Exchange and completing a proposed Consolidation, if approved by the Board. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; the price of metals including gold, silver copper and cobalt; and the results of exploration programs. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Labrador disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Jeff Graw
CEO
Phone: (403) 477 9194
Email: jeffgraw.214@gmail.com

John Aihoshi
CFO
Phone: (403) 617 9169
Email: aihoshij@gmail.com

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