Chicane Capital closes private placement of subscription receipts

Vancouver, British Columbia--(Newsfile Corp. - July 16, 2026) - Chicane Capital I Corp. (TSXV: CCIC.P) (" Chicane " or the " Company ") is pleased to announce that, further to its press releases dated April 16, 2026 and May 27, 2026, in connection with the Company's previously announced qualifying transaction (the " Proposed Transaction ") with Elton Resources Corp. (" Elton "), the Company and Elton have completed the previously announced brokered private placement offering of subscription receipts for aggregate gross proceeds of $16,660,000.18 (the " Offering "). In connection with the Offering, Canaccord Genuity Corp. (the " Lead Agent ") acted as lead agent and sole bookrunner together with a syndicate of agents including ECM Capital Advisors Ltd., Clarus Securities Inc. and Stifel Nicolaus Canada Inc. (together with the Lead Agent, the " Agents "). For further details of the Offering and the Proposed Transaction, see the Company's news release dated May 27, 2026.

Pursuant to the Offering, (i) Elton issued an aggregate of 41,825,000 subscription receipts (" Elton HD Subscription Receipts ") at a price per Elton HD Subscription Receipt of $0.20 (the " HD Subscription Receipt Price "), and (ii) Chicane issued an aggregate of (1) 33,431,819 "flow-through" subscription receipts (" FT Subscription Receipts ") at a price per FT Subscription Receipt of $0.22 (the " FT Subscription Receipts Price "), and (2) 4,700,000 subscription receipts of Chicane (" Chicane HD Subscription Receipts " and, together with the Elton HD Subscription Receipts and FT Subscription Receipts, the " Subscription Receipts ") at a price per Chicane HD Subscription Receipt equal to the HD Subscription Receipt Price. The Elton Subscription Receipts were issued pursuant to a subscription receipt agreement dated July 16, 2026 between Elton, the Lead Agent and TSX Trust Company (the " Subscription Receipt Agent "), in its capacity as subscription receipt agent in respect of the Elton HD Subscription Receipts (the " Elton Subscription Receipt Agreement "), and the FT Subscription Receipts and the Chicane HD Subscription Receipts were issued pursuant to a subscription receipt agreement dated July 16, 2026 between Elton, Chicane, the Lead Agent and the Subscription Receipt Agent, in its capacity as subscription receipt agent in respect of the FT Subscription Receipts and the Chicane HD Subscription Receipts (together with the Elton Subscription Receipt Agreement, the " Subscription Receipt Agreements "). Each Elton HD Subscription Receipt will entitle the holder thereof to receive, without any further action and without payment of additional consideration, and subject to adjustments in certain circumstances, one unit (an " Elton HD Unit ") of Elton, with each Elton HD Unit being comprised of common share of Elton (each, an " Elton Share ") and one-half of one Elton Share purchase warrant (each full warrant, a " Warrant "), with each whole Warrant being exercisable for a period of three years from the date of issuance for one Elton Share at an exercise price of $0.30, upon the satisfaction or waiver of the Elton Escrow Release Conditions (as defined below) prior to the Termination Date (as defined below).

For avoidance of doubt, upon the completion of the Proposed Transaction, the Elton Shares and Warrants forming part of the Elton HD Units will be exchanged for common shares (" Resulting Issuer Shares ") of the resulting issuer from the Proposed Transaction (the " Resulting Issuer ") and Resulting Issuer Share purchase warrants (" Resulting Issuer Warrants ") on a 1:1 basis. Each FT Subscription Receipt will entitle the holder thereof to subscribe for and receive, without any further action and without payment of additional consideration, and subject to adjustments in certain circumstances, one unit (a " FT Unit ") of the Resulting Issuer, with each FT Unit being comprised of one flow-through Resulting Issuer Share (a " FT Resulting Issuer Share ") that will qualify as a "flow-through share" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the " Tax Act ") and one- half of one flow-through Resulting Issuer Warrant (each full warrant, a " FT Resulting Issuer Warrant ") that will qualify as a "flow-through share" within the meaning of subsection 66(15) of the Tax Act of the Resulting Issuer, with each whole FT Resulting Issuer Warrant being exercisable for a period of three years from the date of issuance for one Resulting Issuer Share, on a non-flow through basis, at an exercise price of $0.30, upon the satisfaction or waiver of the Chicane Escrow Release Conditions (as defined below) prior to the Termination Date. Each Chicane HD Subscription Receipt will entitle the holder thereof to receive, without any further action and without payment of additional consideration, and subject to adjustments in certain circumstances, one unit (a " Chicane HD Unit ") of the Resulting Issuer, with each Chicane HD Unit being comprised of one Resulting Issuer Share and one-half of one Resulting Issuer Warrant, with each whole Resulting Issuer Warrant being exercisable for a period of three years from the date of issuance for one Resulting Issuer Share at an exercise price of $0.30, upon the satisfaction or waiver of the Chicane Escrow Release Conditions prior to the Termination Date.

The aggregate gross proceeds in respect of the Subscription Receipts, less the Agents' reasonable out-of- pocket expenses and the reasonable fees and disbursements of the Agents' legal counsel incurred prior to the closing date of the Offering (the " Escrowed Funds "), were deposited in escrow pursuant to the Subscription Receipt Agreements in an interest bearing account pending the earlier of: (i) the satisfaction of the Elton Escrow Release Conditions or the Chicane Escrow Release Conditions, as applicable, and (ii) the occurrence of a Termination Event (as defined below). Upon satisfaction of the Elton Escrow Release Conditions and the Chicane Escrow Release Conditions on or prior to the Termination Date, the Subscription Receipt Agent will release the deposited Agents' Fee (as defined below) together with all interest earned thereon and all expenses of the Agents not previously paid to the Agents, to or as directed by the Lead Agent on behalf of the Agents from the Escrowed Funds and the balance of the Escrowed Funds together with all interest earned thereon shall be released to Elton or the Resulting Issuer, as applicable. If (i) the Escrow Release Conditions (as defined below) have not been satisfied prior to 5:00 p.m. (Vancouver time) on November 13, 2026 (the "Termination Date "), or (ii) Elton or Chicane, as applicable, delivers to the Agents and the Subscription Receipt Agent a notice, executed by Elton or Chicane, as applicable, declaring that the Escrow Release Conditions will not be satisfied and directing the Subscription Receipt Agent to return the Escrowed Funds to the holders of the applicable Subscription Receipts (in any case, a " Termination Event ", and the date upon which such event occurs, the " Termination Date "), the Subscription Receipt Agent shall return to the holders of the Subscription Receipts an amount equal to the aggregate HD Subscription Receipt Price or FT Subscription Receipt Price, as applicable, of the Subscription Receipts held by each such holder and their pro-rata portion of interest and other income earned on the Escrowed Funds and the Subscription Receipts shall be cancelled.

Elton is responsible and liable to the holders of the Subscription Receipts for any shortfall between the aggregate offering price paid by the original purchasers of the Subscription Receipts and the Escrowed Funds. For the purposes hereof, the term " Elton Escrow Release Conditions " shall mean: the receipt of all required corporate, shareholder, and regulatory approvals in connection with the Offering, the Proposed Transaction and the listing (the " Listing ") of the Resulting Issuer Shares on the TSX Venture Exchange (the " Exchange "); the completion or the satisfaction of all conditions precedent to the Proposed Transaction, substantially in accordance with the definitive agreements relating to the Proposed Transaction, to the satisfaction of the Lead Agent, acting reasonably; and Elton and the Lead Agent having delivered a joint notice to the Subscription Receipt Agent confirming that the conditions set forth in (a) and (b) above have been met or waived. For the purposes hereof, the term " Chicane Escrow Release Conditions " shall mean: the receipt of all required corporate, shareholder, and regulatory approvals in connection with the Offering, the Proposed Transaction and the Listing; the completion of the Proposed Transaction, substantially in accordance with the definitive agreements relating to the Proposed Transaction to the satisfaction of the Lead Agent, acting reasonably; and Chicane and the Lead Agent having delivered a joint notice to the Subscription Receipt Agent confirming that the conditions set forth in (a) and (b) above have been met or waived, and " Escrow Release Conditions " shall mean, collectively, the Elton Escrow Release Conditions and the Chicane Escrow Release Conditions.

The net proceeds from sale of the Elton HD Subscription Receipts and Chicane HD Subscription Receipts will be used for exploration expenditures on the Resulting Issuer's mineral exploration project(s) and for general and administrative purposes. The gross proceeds from the issuance of the FT Resulting Issuer Shares and the FT Resulting Issuer Warrants will be used to incur, "Canadian exploration expenses" as defined in subsection 66.1(6) of the Tax Act that qualify as "flow-through critical mineral mining expenditures" as defined in subsection 127(9) of the Tax Act (the " Qualifying Expenditures "). The Qualifying Expenditures will be incurred on or before December 31, 2027 and will be renounced by the Resulting Issuer to the initial purchasers of the FT Resulting Issuer Shares and the FT Resulting Issuer Warrants with an effective date no later than December 31, 2026 in an aggregate amount not less than the gross proceeds raised from the issue of the FT Resulting Issuer Shares and the FT Resulting Issuer Warrants.

In the event the Resulting Issuer is unable to renounce Qualifying Expenditures effective on or prior to December 31, 2026 for each FT Resulting Issuer Share and the FT Resulting Issuer Warrant in an aggregate amount not less than the gross proceeds raised from the issue of FT Resulting Issuer Shares and the FT Resulting Issuer Warrants, and/or the Qualifying Expenditures are otherwise reduced by the Canada Revenue Agency, the Resulting Issuer will indemnify each subscriber for the additional taxes payable by such subscriber as a result of the Resulting Issuer's failure to renounce the Qualifying Expenditures or as a result of the reduction as agreed. In connection with the Offering and upon satisfaction of the Escrow Release Conditions, the Agents will (i) be paid a cash commission equal to 6.0% of the gross proceeds realized in respect of the sale of the Subscription Receipts, except in the case of certain sales comprising the Company's President's List for which a reduced cash commission of 3.0% of the gross proceeds realized shall be payable (the " Agents' Fee "), and (ii) be issued 4,197,409 Elton Share purchase warrants (the " Agents' Warrants ") with each Agents' Warrant exercisable to acquire one Elton Share at an exercise price of $0.20 for a period of three years from the date of issuance thereof. Each Agents' Warrant will be exchanged for a Resulting Issuer Share purchase warrant bearing substantially the same terms and the Agents' Warrants in connection with the completion of the Proposed Transaction.

The Elton HD Subscription Receipts, Elton Shares and Warrants shall be subject to an indefinite hold period under Canadian securities laws. The FT Subscription Receipts and Chicane HD Subscription Receipts are subject to a four month statutory hold period under Canadian securities laws. The Resulting Issuer Shares (including the FT Resulting Issuer Shares) and Resulting Issuer Warrants (including the FT Resulting Issuer Warrants) issued on conversion of the FT Subscription Receipts and Chicane HD Subscription Receipts following the completion of the Proposed Transaction and the Resulting Issuer Shares and Resulting Issuer Warrants issued in exchange for the Elton Shares and Warrants issued upon the conversion of the Elton HD Subscription Receipts and the Resulting Issuer Share purchase warrants issued in exchange for the Agents' Warrants and underlying Resulting Issuer Shares will not be subject to a statutory hold period in Canada.

The Offering remains subject to the final approval of the TSXV. Additional Information Trading in the common shares of the Company is currently suspended in accordance with the policies of the Exchange and will remain suspended until such time as all required documentation in connection with the Proposed Transaction has been filed with and accepted by the Exchange and permission to resume trading has been obtained from the Exchange. Completion of the Proposed Transaction is subject to a number of conditions and there can be no assurance that the Proposed Transaction will be completed as proposed or at all.

About Chicane Capital I Corp. Chicane was incorporated under the Business Corporations Act (Ontario) on February 23, 2022, and is a Capital Pool Company (as such term is defined in Policy 2.4) listed on the Exchange. Chicane has no commercial operations and no assets other than cash. About Elton Resources Corp. Elton is a mining exploration company focused on the exploration and development of the Darnley Bay Project in the Northwest Territories, Canada.

For more information, please visit www.eltonresources.com . Further Information For further information, please contact: Chicane Capital I Corp. 66 Wellington Street West, Suite 4100 P.O. Box 35, TD Bank Tower Toronto, Ontario M5K 1B7 Canada Contact: John Travaglini Telephone: 416-569-7921 Elton Resources Corp. c/o 1066 West Hastings Street, Suite 2600 Vancouver, British Columbia V6E 3X1 Canada Contact: Carson Phillips Telephone: 604-657-5871 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the " U.S. Securities Act ") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Not for distribution to U.S. newswire services or for dissemination in the United States.

Any failure to comply with this restriction may constitute a violation of U.S. securities laws. Completion of the Proposed Transaction is subject to a number of conditions, including but not limited to the Exchange acceptance and, if applicable pursuant to the Exchange requirements, majority of the minority shareholder approval. Where applicable, the Proposed Transaction cannot close until the required shareholder approval is obtained.

There can be no assurance that the Proposed Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Proposed Transaction, any information released or received with respect to the Proposed Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Chicane should be considered highly speculative.

The Exchange has in no way passed upon the merits of the Proposed Transaction and has not approved or disapproved of the contents of this news release. Cautionary Note Regarding Forward-Looking Statements This press release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Chicane and Elton with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding: expectations regarding whether the Proposed Transaction will be consummated, including whether conditions to the consummation of the Proposed Transaction will be satisfied, or the timing for completing the Proposed Transaction, whether the Escrow Release Conditions will be satisfied, whether the Exchange will provide its final approval in respect of the Offering and the Proposed Transaction, the payment of the Agents' Fee and issuance of the Agents' Warrants, and the incurrence and renunciation of Qualifying Expenditures as currently contemplated.

Readers are cautioned that forward-looking information is not based on historical facts but instead reflect management of Chicane and Elton's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Chicane and Elton believe that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability to consummate the Proposed Transaction; the ability to obtain requisite regulatory and other approvals and the satisfaction of other conditions to the consummation of the Proposed Transaction on the proposed terms and schedule; the potential impact of the announcement or consummation of the Proposed Transaction on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; the ability of Elton to carry out its exploration activities as currently contemplated; compliance with extensive government regulation; dilution caused by the Offering as well as any future financings that may be undertaken by Chicane and Elton including the resulting dilutive effect to current and/or future securityholders; and the diversion of management time on the Proposed Transaction.

This forward-looking information may be affected by risks and uncertainties in the business of Chicane, Elton and market conditions. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Chicane and Elton have attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended.

Chicane and Elton do not intend, and do not assume any obligation, to update this forward-looking information except as otherwise required by applicable law. NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305445 Newsfile Corp. July 16, 2026 - 8:18 AM PDT News by QuoteMedia www.quotemedia.com