Canary Gold Commences 20,000-Metre Dual-Rig Drilling Program at Madeira Project

(TheNewswire)

Vancouver, British Columbia – TheNewswire - January 15, 2026 –Canary Gold Corp. (CSE: BRAZ; OTC: CNYGF; Frankfurt: K5D)(“Canary” or the “Company”) is pleased to announce themobilization of its 2026 exploration program at the Madeira Project,marked by the arrival of the first drill rig on site. The Company hasengaged Geosol, a leading drilling services contractor, to execute acomprehensive, multi-rig drilling campaign focused on definingnear-surface mineralization.

The exploration program is designed with a dual-rigstrategy, combining specialized drilling for geological definitionwith rapid regional coverage.

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Figure 1. Excavator and drill rig loaded ontransport truck en route to the Madeira River Project.

Screw-auger Drilling(Underway)

The first drill rig has arrived on site and iscurrently mobilizing to initial collar locations. The rig utilizes ascrew-auger drilling system, a specialized technique that represents avariation of diamond drilling optimized for unconsolidated groundconditions. This method is specifically designed to recoverhigh-quality samples from the favourable "Mocururu" geologichorizon and associated prospective gravel beds.

Key highlights of the screw-auger programinclude:

• Targeting: Definition of high-prioritygeological zones (Mocururu and gravel beds). 

• Total drilling:  Approximately 5,000metres across roughly 100 drill holes. 

• Spacing: Initial grid of 200 m x 100 m,with flexibility to tighten spacing based on visual observations andassay results. 

• Depth: Shallow drilling to a maximumdepth of approximately 50 metres per hole. 

Reverse Circulation (RC) Drilling(Commencing Late January)

The Company expects the arrival of a second drillrig—a Reverse Circulation (RC) unit—during the second half ofJanuary. While the screw-auger program is focused on defining specificnear-surface geological units, the RC rig will be deployed to"sweep" the broader land package included in the originalagreement with New Frontiers.

This phase of drilling is intended to rapidly assessregional geological continuity and identify new priority targetsacross the property. Drilling of the additional land packageassociated with the agreement with Talisman is not contemplated atthis stage.

Key highlights of the RC program include:

• Objective: Regional reconnaissancedrilling to test the broader extent of the property and identify newgeological anomalies. 

• Total drilling:  Approximately 15,000metres across roughly 300 drill holes. 

• Spacing: Wide-spaced reconnaissance gridof approximately 2,000 m x 1,000 m. 

• Depth: Consistent testing of the oxideprofile to a maximum depth of approximately 50 metres. 

Website and Investor Materials Update

In parallel with the mobilization of its 2026exploration program, the Company has completed a comprehensive updateof its corporate website and investor presentation. These refreshedmaterials are designed to more clearly communicate the geologicalframework, exploration strategy, and scale of the Company’s landposition, while ensuring consistent and accessible disclosure forinvestors.

The updated website and investor materials reflect theCompany’s transition into an active execution phase, providingshareholders with improved technical context and a more structuredoverview of Canary’s exploration objectives at the Madeira Projectand across the broader Madeira River region.

Mark Tommasi, President of Canary Gold Corp.,commented:

“As we move into an active drilling phase, it wasimportant that our public-facing materials evolve alongside ouroperations. The updated website and investor presentation betterreflect where the Company is today and support clear, consistentcommunication as we move into what is expected to be a very productiveyear of exploration.”

Option Issuance

The Company also announces that it has granted anaggregate of 6,107,500 stock options to certain directors, officersand consultants of the Company pursuant to the Company’s OmnibusEquity Incentive Plan. The options have an exercise price of $0.27percommon share for a period of five years from the date of grant. Allsecurities are subject to a statutory hold period of four months andone day from the date of grant, in compliance with applicable stockexchange policies.

The grant of stock options to certain directors andofficers constitutes a related party transaction pursuant toMultilateral Instrument 61-101 – Protection of Minority SecurityHolders in Special Transactions (“MI61-101”). The Company is relying on exemptionsfrom the formal valuation and minority shareholder approvalrequirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a)of MI 61-101, respectively, as the fair market value of the stockoptions granted to related parties does not exceed 25% of theCompany’s market capitalization. The Company did not file a materialchange report 21 days before the grant of the stock options, which isreasonable for a grant of stock options given the exemptions beingrelied upon.

Qualified Person Statement (NI43-101):

The scientific and technical information contained in this newsrelease has been reviewed and approved by Andrew Lee Smith, P.Geo., Executive Director of Canary Gold Corp., who isa “QualifiedPerson” as defined under National Instrument43-101 – Standards ofDisclosure for Mineral Projects. Mr. Smithis notindependent of the Company, as he holds anexecutive and board position.

Data Verification:
In verifying the scientific and technical information disclosedherein, the Qualified Person has reviewed all available geologicallogs, field notes, sampling documentation, heavy-mineral concentratereports, analytical certificates, laboratory procedures, and otherrelevant technical records associated with the Company’s 2025exploration program. Verification included assessment of samplingmethods, chain-of-custody protocols, security of samples fromcollection through transport to the laboratory, and a review of theanalytical methods used by Overburden Drilling Management Ltd.(“ODM”), an independent Canadian laboratory specializing inheavy-mineral evaluation. Where applicable, drill core photographs,stratigraphic profiles, and field observations were compared againstlaboratory findings to confirm consistency.

Limitations & Stage ofExploration:
The information disclosed herein relates to early-stage exploration results, including heavy-mineral indicator mineral data,reconnaissance sampling, and preliminary geological interpretations.Heavy-mineral analyses and field-based observations do not provide quantitative goldgrades and cannot be used to estimate mineralresources. Additional drilling, systematicsampling, and assay verification are required to determine thesignificance of the geological features described.

Visible Gold Caution:
The Qualified Person notes that visible gold described in this release is a qualitative fieldobservation only. Visible gold does not confirm grade, continuity, or thepresence of economic mineralization.Quantitative determination of gold content requires fire-assayanalysis and appropriate QA/QC procedures. Early-stage occurrences ofvisible gold should not be interpreted as indicative of a mineralresource or economic viability.

Exploration Target & GeologicalInterpretation Caution:
Any reference to potential mineralization, sediment-hosted orpaleoplacer systems, or regional metal enrichment is conceptual in nature.There has been insufficientexploration to define a mineral resource, and itis uncertain whether further exploration will result in thedelineation of a mineral resource. Geological models, includinginterpretations of the Mocururu horizon, sediment provenance, placermaturity, and basin-scale transport mechanisms, are interpretive hypotheses based on limited datasets and should not be considereddefinitive.

Historical or Third-PartyInformation:
Where the release refers to historical information, academicreferences, or third-party geological interpretations (includingODM’s technical commentary), such data have not been independently verified by the Qualified Person and may not be representative ofmineralization within Canary Gold’s current tenementboundaries.

AboutCanary Gold Corp.

Canary Gold Corp. is a Canadian public exploration company focused on theacquisition and advancement of gold projects in Brazil. The Companyholds an option to earn up to a 70% undivided interest inthe Rio MadeiraProject through a series of staged explorationexpenditures and milestone payments.

In August 2025, Canary furtherexpanded its regional strategy by entering into a definitive agreementto acquire a 100% interest in ten additional mineral tenementstotaling approximately 94,700 hectares from Talisman Venture Partners Ltd., a private British Columbia corporation. The totalconsideration of CAD $1.7 million is being satisfied through stagedcash and share payments, a portion of which remains outstanding inaccordance with the terms of the agreement.

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

Together, these interests provide Canary Gold with adominant and strategically consolidated land position in the MadeiraRiver region of Rondônia State — one of Brazil’s most prospectiveyet underexplored gold provinces.

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

Cautionary Statement RegardingForward-Looking Information

This news releasecontains forward-looking statements within the meaning of applicablesecurities laws that are not historical facts. Forward-lookingstatements are often identified by terms such as “will”, “may”, “should”, “anticipates”, “expects”, “believes”, and similar expressions or the negativeof these words or other comparable terminology. All statements, otherthan statements of historical fact, included in this release,including, without limitation, statements regarding theCompany’splanned exploration programs and drill programs and potentialsignificance of results, are forward-looking statements that involverisks and uncertainties. There can be no assurance that suchstatements will prove to be accurate and actual results and futureevents could differ materially from those anticipated in suchstatements. Important factors that could cause actual results todiffer materially from the Company’s expectations include but are not limitedto the risks detailed in the Company’s Prospectus and in the continuousdisclosure filings made by the Company with securities regulationsfrom time to time. The reader is cautioned that assumptions used inthe preparation of any forward-looking information may prove to beincorrect. Events or circumstances may cause actual results to differmaterially from those predicted, as a result of numerous known andunknown risks, uncertainties, and other factors, many of which arebeyond the control of the Company. The reader is cautioned not toplace undue reliance on any forward-looking information. Suchinformation, although considered reasonable by management at the timeof preparation, may prove to be incorrect and actual results maydiffer materially from those anticipated. Forward-looking statementscontained in this news release are expressly qualified by thiscautionary statement. The forward-looking statements contained inthisnews release are made as of the date of this news release and theCompany will update or revise publicly any of the includedforward-looking statements only as expressly required by applicablelaw.

No securitiesexchange or commission has reviewed or accepts responsibility for theadequacy or accuracy of this release.

Disclaimer 

This news releasedoes not constitute an offer to sell or a solicitation of an offer tobuy nor shall there be any sale of any securities in any jurisdictionin which such offer, solicitation, or sale would be unlawful. Thesecurities of the Company have not been and will not be registeredunder 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 definedin Regulation S under the 1933 Act) unless registered under the 1933Act and applicable state securities laws, or an exemption from suchregistration requirements is available.

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