Canary Gold Outlines Technical Validation Pathway For Rio Madeira Alluvial Gold Project

14:00 Uhr  |  The Newswire

Vancouver - Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) ("Canary Gold" or the "Company") is pleased to provide a follow-up to its June 10, 2026 news release and announce that it has received additional technical observations and recommendations from Clara Maria Lamus Molina, an internationally recognized geologist-engineer and specialist in the evaluation and sampling of alluvial gold deposits.

The review supports the Company's view that Rio Madeira represents a prospective large-scale alluvial exploration target where the next phase of technical advancement will depend on disciplined validation of paleochannel geometry, gravel continuity, recoverable gold content and volumetric grade. Ms. Molina's work provides Canary with a practical roadmap to advance from preliminary geological observations toward systematic, representative and auditable technical data.

The Company believes the review represents an important next step in positioning the Madeira River Project for future exploration milestones, evaluation of whether sufficient technical information can ultimately support a National Instrument 43-101 compliant mineral resource estimate subject to continued exploration success, additional drilling, representative sampling, QA/QC, recovery testing and geological modelling.

Ms. Molina's review highlights several positive indicators and technical priorities at the Madeira River Project, including:

• active alluvial gold mining observed within the Madeira River system;

• visible free gold observed during the inspection of active alluvial mining operations within the broader Madeira River system; these observations provide regional geological context only and are not necessarily indicative of mineralization on the Company's property;

• favourable gravel intervals identified in areas of exploration interest;

• geomorphological features compatible with alluvial plains, terraces, paleochannels and high-energy channel environments;

• paleochannels and coarse-gravel systems identified as priority targets for alluvial gold concentration;

• sonic drilling recommended as a preferred validation tool in priority target areas;

• recovered-volume control recommended to evaluate gold content on a reliable volumetric basis;

• standardized logging, granulometry, gold-particle classification, QA/QC and chain-of-custody procedures recommended; and

• geological-volumetric modelling identified as a key step toward future resource-readiness.

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

Click Image To View Full Size

Figure 1: Preliminary interpretation of the Jaci Paraná Paleochannel target area at the Madeira River Project. The interpreted paleochannel target remains prospective and requires validation through systematic drilling, controlled sampling, volumetric analysis and QA/QC.

Mark Tommasi, President of Canary Gold, commented:

"Rio Madeira exhibits several characteristics commonly associated with alluvial gold systems, including interpreted paleochannel targets, favourable gravel horizons and active alluvial mining within the broader Madeira River region. The next step is disciplined validation. Ms. Molina's review gives us a clear technical pathway to test the project in a way that is systematic, auditable and meaningful for investors."

Mr. Tommasi continued:

"Alluvial gold systems are different from conventional hard-rock deposits. They are generally evaluated on a volumetric basis, where the size and continuity of the paleochannel, the thickness of favourable gravels, recoverable gold content, stripping ratio, processing efficiency and throughput are all important. Our objective is to define the channel, measure the gravel, validate the grade, test recovery and build the database step by step."

Why the Alluvial Model Matters

Alluvial, or placer, gold systems are formed when gold is naturally liberated from source rocks, transported by ancient or modern river systems and concentrated by hydraulic sorting within favourable sedimentary environments such as coarse gravels, sand bars, terraces, channel bases and paleochannels.

Canary's exploration model at the Madeira River Project is focused on identifying preserved paleochannel and high-energy gravel environments within the broader Madeira River system where gold may have been naturally concentrated and preserved.

The Company believes the Madeira River Project is best understood through a staged alluvial-gold development pathway.

Canary is currently in the early stages of this pathway. The Company has identified preliminary geological indicators and priority paleochannel-style targets. The next phase is intended to validate geometry, continuity, gravel thickness, representative grade and recovery characteristics.

Technical Program Focus

A central recommendation from Ms. Molina is the use of sonic drilling in priority target areas. Sonic drilling is considered well suited to unconsolidated alluvial environments because it can improve sample recovery, preserve stratigraphic relationships, reduce interval contamination, improve fine-material recovery and support more accurate measurement of recovered sample volume.

These factors are critical in alluvial gold exploration, where gold distribution can be irregular and reliable evaluation depends on representative sampling, volume control and repeatable recovery methods.

Future work is expected to focus on:

• systematic sonic drilling in priority areas;

• metre-by-metre geological logging;

• recovered-volume measurement by interval;

• controlled sample processing and gravity concentration;

• gold-particle recovery, classification and weighing;

• laboratory validation of selected samples;

• robust QA/QC and chain-of-custody procedures; and

• geological-volumetric modelling.

Click Image To View Full SizeFigure 2: Conceptual alluvial-gold development pathway showing the technical progression from discovery and paleochannel definition through drill delineation, bulk sampling, resource estimation, economic studies, reserves and potential production. Canary is currently focused on early-stage validation, and there is no assurance the Project will advance through all stages.

Sampling, Processing and QA/QC

Ms. Molina has recommended that future sampling programs incorporate a practical sample-processing workflow appropriate for alluvial gold environments. Under this approach, samples from target horizons may be screened through a 1/8-inch mesh, with the passing material washed and concentrated. Concentration may be completed through skilled panning or, where appropriate, calibrated modern gravity-concentration equipment.

The process is expected to include experienced technical supervision, gold-particle classification and use of a deposit-specific particle-size-to-weight calibration chart to support consistent preliminary field estimates.

The Company continues to review and refine its sampling and analytical procedures as exploration progresses. The objective is to establish a representative, repeatable and auditable technical workflow appropriate for alluvial gold and coarse gold environments.

Learning from Mature Alluvial Systems

Canary has also reviewed mature alluvial gold systems to better understand the technical pathway required to move an alluvial discovery toward resource definition and potential development.

One relevant example is the Nechí alluvial gold system in Colombia, operated by Mineros S.A. Nechí is a long-running alluvial operation with NI 43-101 mineral resource and reserve disclosure, extensive drilling, production history and operating reconciliation.

Canary cautions that Nechí is referenced solely as an educational and technical benchmark for how alluvial systems can be evaluated and advanced when sufficient drilling, volume control, recovery testing, mine planning and QA/QC have been completed. Nechí is not located on or adjacent to the Madeira River Project, is materially more advanced than the Madeira River Project, and no inference should be drawn that the Madeira River Project hosts comparable mineralization, grades, resources, reserves, recoveries, economics or mining conditions.

Mr. Tommasi added:

"Nechí is not a direct comparison to Rio Madeira. It is a useful example of the level of technical discipline required to move an alluvial system from concept to resource and operating model. Our objective is to apply that discipline early at Rio Madeira and build the technical foundation required for future decision-making."

Management's View

Canary believes the Madeira River Project represents an early-stage alluvial gold exploration project with multiple targets requiring further technical validation. The Company's immediate objective is to advance from preliminary geological and field observations toward representative, auditable data that can support future technical and investment decisions.

The Company is now reviewing budgets, logistics, access and sequencing for a priority sonic-drilling and sample-processing program at the Madeira River Project.

The Company cautions investors that exploration at the Madeira River Project remains at an early stage. No mineral resource has been defined, and there can be no assurance that continued exploration will result in the delineation of an economic mineral deposit. Geological interpretations, including interpreted paleochannel targets, remain subject to further drilling, sampling, testing and validation.

Qualified Person and Technical Disclosure

The scientific and technical information contained 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 - Standards of Disclosure for Mineral Projects.

Mr. Smith has previously visited the Company's project areas in Brazil and is familiar with the regional geology and exploration activities. While not continuously present on site, Mr. Smith has reviewed drilling, sampling, QA/QC and geological information and is satisfied that the information has been collected and reported by site-based personnel in accordance with industry standard practices.

Mr. Smith is not independent of the Company within the meaning of National Instrument 43-101, as he serves as Executive Chairman of Canary Gold Corp.

About Canary Gold Corp.

Canary Gold Corp. is a Canadian public exploration company focused on the acquisition and advancement of gold projects in Brazil. The Company holds an option to earn up to a 70% undivided interest in the Rio Madeira Project through a series of staged exploration expenditures and milestone payments.

In August 2025, Canary further expanded its regional strategy by entering into a definitive agreement to acquire a 100% interest in ten additional mineral tenements totaling approximately 94,700 hectares from Talisman Venture Partners Ltd., a private British Columbia corporation. The total consideration of CAD $1.7 million has been satisfied through staged cash and share payments.

Talisman retains a 1.0% net smelter return (NSR) royalty on future production from the acquired tenements, one-half of which (reducing the NSR to 0.5%) may be repurchased by the Company at any time for CAD $1.0 million.

Together, these interests provide Canary Gold with a dominant and strategically consolidated land position in the Madeira River region of Rondônia State - a historically productive and underexplored gold region of Brazil.

For Further Information, Please Contact:
Canary Gold Corp.
Mark Tommasi, President
Tel: (604) 318-1448
www.canarygold.ca

Cautionary Statement Regarding Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable securities laws that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipates", "expects", "believes", and similar expressions or the negative of these words or other comparable terminology. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding the Company's planned exploration programs and drill programs and potential significance of results, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include but are not limited to the risks detailed in the Company's Prospectus and in the continuous disclosure filings made by the Company with securities regulations from time to time. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by applicable law.

No securities exchange or commission has reviewed or accepts responsibility for the adequacy or accuracy of this release.

Disclaimer

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the "United States" or to "U.S. persons" (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

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