Flow Metals options epithermal gold project at Sixtymile

Vancouver, British Columbia--(Newsfile Corp. - August 6, 2026) - Flow Metals Corp. (CSE: FWM) ("Flow Metals" or the "Company") is pleased to announce the acquisition of the neighboring gold project at Sixtymile. The new project covers a section of the northern thrust fault zone and part of an epithermal zone on the west central part of the claim block.

"We have been working to expand our control of the Sixtymile Gold District, and this acquisition is another important step in that strategy," said Scott Sheldon, President and CEO of Flow Metals. "The expanded project now encompasses the headwaters of the historic Miller, Glacier, Bedrock and Little Gold placer-producing drainages, increasing our land position to approximately 16,800 hectares. In addition to strengthening our district-scale orogenic gold model, the acquisition adds a compelling epithermal exploration target on the western side of the property."

Option Agreement

Pursuant to an option agreement dated July 30, 2026 (the "Option Agreement") between the Company and an arm's length party (the "Optionor"), the Company has been granted the sole and exclusive option (the "Option") to acquire an undivided 100% interest in 154 quartz claims located in the Dawson Mining District, Yukon (the "Property"), subject to the 2.5% net smelter returns royalty described below.

To exercise the Option, the Company must make aggregate payments of $180,000 to the Optionor in accordance with the following schedule:

$10,000 on or before August 7, 2027;

$20,000 on or before August 7, 2028;

$30,000 on or before August 7, 2029; and

$120,000 on or before August 7, 2030.

At its election, the Company may satisfy each payment entirely in cash or as to 50% in cash and 50% through the issuance of common shares of the Company. If the Company elects to satisfy any portion of a payment through the issuance of common shares, the number of common shares issuable will be calculated using the volume-weighted average trading price of the common shares on the CSE for the 30 trading days immediately preceding the applicable payment date. Any common shares issued under the Option Agreement will be subject to a four-month hold period and all other applicable resale restrictions under Canadian securities laws and the policies of the CSE.

In addition to the foregoing option payments, the Option Agreement provides for the following one-time milestone payments:

Following the Company's first public disclosure, in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects , of a mineral resource estimate confirming an Inferred Mineral Resource, or a mineral resource in a higher classification, containing at least 500,000 ounces of gold or gold equivalent attributable to the Property, the Optionor may elect to receive either (i) $100,000 in cash or (ii) up to 1,000,000 common shares of the Company having an aggregate deemed value, based on the applicable 30-trading-day volume-weighted average trading price, as close as possible to, but not exceeding, $350,000.

Following the completion of an aggregate of 2,500 metres of drilling on the Property by or on behalf of the Company, the Optionor may elect to receive either (i) $50,000 in cash or (ii) up to 500,000 common shares of the Company having an aggregate deemed value, based on the applicable 30-trading-day volume-weighted average trading price, as close as possible to, but not exceeding, $100,000.

For each milestone, the Optionor must make its election within 30 days after receiving notice from the Company. If the Optionor does not make a timely election, the Company will satisfy the applicable milestone payment using the alternative having the greater deemed value as of the applicable payment date. Each milestone payment is payable once only.

Upon exercise of the Option, the Optionor will retain a 2.5% net smelter returns royalty on minerals produced from the Property. At any time before the commencement of commercial production, the Company may repurchase 40% of the 2.5% royalty, representing a 1.0% net smelter returns royalty, for $1,500,000, following which the Optionor would retain a 1.5% net smelter returns royalty.

Provided that the Company has exercised the Option, commencing on August 7, 2031 and on each August 7th thereafter until the commencement of commercial production, the Company will be required to make an annual payment of $10,000 to the Optionor. Each annual payment will be credited dollar-for-dollar against the $1,500,000 royalty buyback price but will not otherwise reduce the royalty payable to the Optionor.

The Option Agreement does not require the Company to incur any minimum exploration expenditures on the Property. Payments made and common shares issued under the Option Agreement are non-refundable. No finder's fees were paid in connection with the transaction.

The Option Agreement also establishes a one-kilometre area of common interest surrounding the Property, excluding validly existing third-party quartz claims. Mineral interests subsequently acquired by either party or its affiliates within the area of common interest during the term of the Option Agreement may, at the election of the other party, be included in the Property in accordance with the terms of the Option Agreement.

Epithermal Target

The newly acquired Sixtymile Border property contains geological features interpreted to be consistent with an epithermal hydrothermal system, including cinnabar-bearing polymetallic veins, extensive silicification and elevated arsenic values.

Figure 1 - Sixtymile claim block.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/7235/308331_60ea654f247bcb72_001full.jpg

Northeast trending resistive ridges are interpreted to represent silicified fault zones. Field observations include silica sinter, bladed quartz-lined vugs and rock samples returning arsenic values exceeding 10,000 ppm. Andesitic volcanic rocks mapped on the property provide further evidence of the volcanic environment commonly associated with epithermal mineralization.

Flow interprets the combined property as having the potential to represent a telescoped hydrothermal system, where deep orogenic gold-bearing structures were subsequently reactivated and overprinted by younger magmatic-hydrothermal activity. Similar overprinting relationships are recognized in several productive gold districts worldwide and may enhance gold remobilization and concentration where favourable structural pathways exist.

Low-sulphidation epithermal systems are globally recognized for hosting high-grade gold and silver mineralization. The identification of epithermal alteration adjacent to the Company's previously identified orogenic gold targets introduces a second mineralization model within the Sixtymile district and significantly expands the exploration potential of the project.

Qualified Person

The technical content of this news release has been reviewed and approved by Harley Slade, P.Geo., a director of the Company, who is a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects .

About the Company

Flow Metals is a Canadian mineral exploration company focused on advancing district-scale opportunities in established mining regions. The Company employs a systematic, technology-driven exploration approach to evaluate large mineral systems. The Company's flagship Sixtymile Gold Project in the Yukon targets the bedrock source of widespread placer gold mineralization across a contiguous land package. Flow Metals also owns the New Brenda Project in southern British Columbia, a porphyry copper-molybdenum system within the Quesnel Terrane.

For further information, please contact: Scott Sheldon, President and CEO 604.725.1857 scott@flowmetals.com

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, statements regarding: the Company's ability and intention to maintain and exercise the Option and acquire an undivided 100% interest in the Property, subject to the NSR Royalty; the timing, form and amount of payments and potential share issuances under the Option Agreement; the possible achievement of the drilling and mineral resource milestones and the resulting milestone payments; the potential repurchase of a portion of the NSR Royalty; the commencement of commercial production; future exploration activities on the Property; the geological interpretation of the Property, including the possible presence of an epithermal hydrothermal system, silicified fault zones, orogenic and epithermal gold mineralization and a telescoped hydrothermal system; the potential for geological structures or alteration identified on the Property to host gold, silver or other mineralization; and the exploration potential of the combined Sixtymile property. Forward-looking information is frequently identified by words such as "anticipates," "believes," "expects," "intends," "may," "plans," "potential," "should," "will" and similar expressions, or statements that certain events or conditions "may" or "will" occur.

Forward-looking information is based on management's reasonable assumptions, estimates, expectations, analyses and opinions as of the date of this news release, including assumptions regarding: the continued validity and enforceability of the Option Agreement; the ability of the parties to satisfy their respective obligations under the Option Agreement; the Company's ability to obtain sufficient financing and make the required option, milestone and other payments when due; the Company's ability to issue common shares in accordance with applicable securities laws and CSE policies; the validity and good standing of the mineral claims comprising the Property; the accuracy and reliability of available geological, geochemical and geophysical information; the reasonableness of the Company's geological interpretations; the availability of personnel, contractors, equipment and supplies; favourable weather, access and operating conditions; the ability to obtain and maintain required permits, licences and authorizations; commodity prices and market conditions; and the absence of material adverse changes in applicable laws, regulations or government policies.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to: the Company being unable to obtain financing or make payments when due; the Company electing not to exercise the Option; termination of the Option Agreement as a result of default or otherwise; the issuance of common shares under the Option Agreement resulting in dilution to existing shareholders; the drilling or mineral resource milestones being achieved and giving rise to additional cash or share consideration; title defects or challenges affecting the Property; the failure to maintain mineral claims, permits or approvals in good standing; exploration results or geological interpretations proving to be inaccurate; the failure to identify mineral resources or economically recoverable mineralization; the speculative nature of mineral exploration and development; operational hazards; environmental risks; adverse weather or access conditions; the unavailability of personnel, contractors, equipment or supplies; changes in commodity prices, capital markets, laws, regulations or government policies; community, First Nations or permitting matters; and the other risks described in the Company's continuous disclosure documents filed under its issuer profile on SEDAR+.

There can be no assurance that the Company will exercise the Option, complete any proposed exploration program, achieve either milestone, identify a mineral resource, repurchase any portion of the NSR Royalty or achieve commercial production on the Property. Mineral exploration is inherently uncertain, and the geological interpretations and exploration targets described in this news release are conceptual in nature. Investors are cautioned not to place undue reliance on forward-looking information.

The forward-looking information contained in this news release is provided as of the date hereof. Except as required by applicable securities laws, the Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/308331

Newsfile Corp.

August 6, 2026 - 3:08 AM PDT

News by QuoteMedia

www.quotemedia.com