SAGA Metals sells North Wind iron ore project in Labrador

Vancouver, British Columbia--(Newsfile Corp. - August 5, 2026) - SAGA Metals Corp. (TSXV: SAGA) (OTCQB: SAGMF) (FSE: 20H) ("SAGA" or the "Company") , a North American exploration company focused on critical mineral discoveries, is pleased to announce the execution of a Property Sale Agreement (the "Agreement") with Orion Iron Ore Ltd. ("Orion"), an arms-length Vendor.

Orion is a private iron ore explorer focused on assembling and advancing a significant iron complex in the Labrador Trough through staking and strategic acquisitions of highly prospective ground. The company is led by a team of industry veterans who intend to leverage the region's world-class existing infrastructure and decades of historic exploration to accelerate targeting and resource delineation, with the goal of completing a public listing within the next 12 months.

Mike Stier, CEO & Director of SAGA Metals, commented:

"We believe every asset in our portfolio holds significant potential in the critical minerals space. As we have developed our project pipeline over the past several years, we have consistently demonstrated our ability to create shareholder value through non-dilutive opportunities, including our previous dealings with Rio Tinto. The sale of the North Wind Iron Ore Project continues that disciplined approach. By securing equity in Orion, a board seat, and a retained royalty, we maintain meaningful upside exposure to the Labrador Trough while sharpening our focus on our core critical mineral assets. This transaction reflects our ongoing commitment to unlocking value for shareholders in a thoughtful and strategic manner."

The Labrador Trough is a major Paleoproterozoic geological terrane stretching approximately 1,600 km from northern Québec into Labrador. Formed in an Early Proterozoic rift basin, this linear belt of sedimentary and volcanic rocks hosts extensive banded iron formations of the Sokoman Formation within the Knob Lake Group. Since the 1950s the district has produced well over three billion tonnes of iron ore and continues to support active mining and exploration.

Orion's current portfolio centres on two complementary properties within this proven corridor. The H2 Property covers 11,425 hectares in Labrador, less than 10 kilometres from Schefferville, and is fully permitted for early-stage exploration including prospecting and trenching. High-grade hematite and magnetite showings, supported by historic trenching, induced polarization surveys and airborne magnetics, occur along northwest-trending structures that remain open and relatively underexplored. The ground lies immediately along strike from active operations controlled by Tata Steel and Vale, as well as the Cyclone Metals-Vale joint venture on Block 103 and several Labrador Iron Mines deposits, and benefits from direct access to the Schefferville-Sept-Îles rail line, the Menihek hydroelectric station and an extensive road network.

Approximately 25 to 100 kilometres northwest of Schefferville in northeastern Québec, the Lac Le Fer property comprises roughly 37,000 hectares across 738 claims in three contiguous blocks. These claims are underlain by the same tightly folded and structurally thickened Sokoman Iron Formation that hosts Tata Steel's Goodwood direct-shipping ore deposits and Champion Iron's 16-billion-tonne Full Moon taconite resource. Surface sampling has returned 80 rock samples grading in excess of 55 percent Fe2O3 along a continuous 20-kilometre strike length that coincides with strong northwest-trending magnetic anomalies.

Figure 1: Regional map highlighting Orion Iron Ore's land position including the North Wind Iron Ore Project relative to nearby iron deposits in the Labrador Trough.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/12336/308080_a5c42244a49e6839_001full.jpg

Together these two properties with the addition of Saga's North Wind property give Orion a district-scale footprint in one of the world's most prolific and infrastructure-rich iron ore regions.

SAGA's North Wind Iron Ore Property

The North Wind Iron Ore property located 16 kilometers southwest of Schefferville, Quebec spanning 6,375 hectares across 255 claim blocks under a single license. Its geological framework holds significant potential, reinforced by a portion of a historical resource estimate (NI 43-101 compliant) completed in 2013 by New Millennium Iron.

Key Property Highlights

High-Grade Iron Ore Potential: Iron content (Fe2O3) in grab samples from the Sokoman Formation range as high as 84.57% Fe2O3 , with continuous high grade in the Lower, Middle and Upper Iron stratigraphy's. Highest grab sample of 2025 returned 79.26 % Fe2O3 , from the Middle Iron Formation.

Magnetite-Rich Ore: Davis Tube separation techniques confirm the presence of magnetite-rich taconite ore, along with the occurrence of hematite, limonite, and goethite. These results are comparable to historical regional resources at the KéMag, Sheps Lake , and Perrault Lake deposits , which boasted strong resource estimates.

Extensive Mineralization Zone: Fieldwork identified iron ore mineralization over a 4km NW-SE trend , with indications that the mineralized zone continues southeast. Mapping in the area suggests that the units dip shallowly to the northeast which would make easy drill targets for resource estimation. Surface thickness of the mineralized trend ranges between 600 and 700 meters , underscoring the project's potential scale.

The Labrador Trough: A highly Prospective and Globally Recognized Iron Region in Canada

In February of 2025, Cyclone Metals Limited (ASX: CLE) announced that it signed a binding commercial agreement with Vale S.A. regarding the joint development of its Iron Bear iron ore project. (See Figure 1 above for project location) . Under the terms of the agreement, Vale has the right to provide up to USD $138 million of funding to the Iron Bear Project in two Phases and earn 75% of the project. If Vale elects to proceed to Decision to Mine (DTM), Vale can elect to acquire the remaining 25% of the Iron Bear project at fair market value or carry Cyclone to production with no dilution.

As reported in June of this year, Iron Bear Resources Ltd. has received an additional US$2 million funding tranche from Vale S.A. for its flagship Iron Bear iron ore project in the Labrador Trough, Newfoundland and Labrador. This represents the fourth payment under their binding development agreement, bringing Vale's total contributions to US$16.7 million, with a final US$1.3 million tranche expected this summer. The partnership allows Vale to invest up to US$138 million across two phases to earn a 75% interest in the project.

Deal Terms

As consideration for the sale of the Property to Orion, SAGA will receive:

4,000,000 common shares of Orion

1 board seat within Orion to be held by SAGA's CEO Mike Stier to maintain corporate oversight

2% Gross Overriding Royalty (GORR) Royalty Purchase Option: 1% may be repurchased at any time on or before the date of Commencement of Commercial Production for $500,000

After the fourth anniversary but before the date of Commencement of Commercial Production (if applicable), $1,500,000.00

Qualified Person

Dr. A. Miller, P. Geo., PEGNL, is an Independent Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the technical information disclosed in this news release.

About SAGA Metals Corp.

SAGA Metals Corp. is a North American mining company focused on the exploration and discovery of a diversified suite of critical minerals that support the North American transition to supply security. The 100% owned Radar Ti-V-Fe Project comprises 24,175 hectares and entirely encloses the Dykes River intrusive complex, mapped at 160 km² on the surface near Cartwright, Labrador. Exploration to date, including 20,850 m of drilling in the Hawkeye and Trapper zones, has confirmed a large, mineralized layered mafic intrusion hosting vanadiferous titanomagnetite (VTM) and ilmenite mineralization with consistently uniform grades of titanium, vanadium and iron.

The 100% owned Wolverine Heavy Rare Earth Element Project in Labrador, is a near-surface REE system hosted within a peralkaline caldera complex that shares strong geological similarities with the Tanbreez and Strange Lake deposits. The project features consistent mineralization, with zones spanning 26 km 2 , including drill assays up to 2.03% TREO with approximately 28% HREO content, and sample assays up to 21.6% TREO.

The 100% owned Double Mer Uranium Project covers 25,600 hectares and features uranium radiometrics that highlight an 18 km east-west trend, with a confirmed 14 km section producing samples as high as 0.428% U 3 O 8 . (2024 Double Mer Technical Report).

Additionally, SAGA owns the Legacy Lithium Project in Quebec's Eeyou Istchee James Bay region. This project spans 72,701 hectares and has geological attributes similar to nearby terrains currently being explored by Rio Tinto, Li-FT Power, SOQUEM, and Loyal Metals.

With a portfolio spanning key commodities critical to the clean energy future, SAGA is strategically positioned to play an essential role in securing critical minerals.

On Behalf of the Board of Directors

Mike Stier, Chief Executive Officer

For more information, contact:

Rob Guzman, Investor Relations SAGA Metals Corp. Tel: +1 (844) 724-2638 Email: rob@sagametals.com www.sagametals.com

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

Cautionary Disclaimer

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 are forward-looking statements that involve risks and uncertainties. In particular, this news release contains forward-looking information pertaining to the sale of the Company's North Wind Iron Project. 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, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, environmental risks, limitations on insurance coverage, inherent risks and uncertainties involved in the mineral exploration and development industry, particularly given the early-stage nature of the Company's assets, and the risks detailed in the Company's continuous disclosure filings with securities regulations from time to time, available under its SEDAR+ profile at www.sedarplus.ca . 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. This cautionary statement expressly qualifies forward-looking statements contained in this news release. 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/308080

Newsfile Corp.

August 4, 2026 - 11:00 PM PDT

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