Valhalla Metals identifies VTEM targets at Sun project

Vancouver, British Columbia--(Newsfile Corp. - August 10, 2026) - Valhalla Metals Inc. (TSXV: VMXX) (OTCQB: VMXXF) ("Valhalla" or the "Company") is pleased to announce the identification of multiple untested airborne Versatile Time Domain Electromagnetic ("VTEM") conductive targets at its Sun project located in the Ambler Mining District, Northwest Alaska.

The targets were generated through 3D conductivity inversion and advanced conductive plate modelling of the Company's airborne VTEM survey completed across the Sun property, which identified several large, highly conductive anomalies within the same volcanic-sedimentary package that hosts the Main Sun and SW Sun volcanogenic massive sulphide ("VMS") deposits - none of which have ever been drill-tested.

The helicopter-borne VTEM and magnetics survey was flown over the Sun project along 200-metre spaced survey flight lines with 2,000-metre spaced tie lines, covering the Sun, SW Sun and Picnic deposit areas as well as extensive untested ground across the Company's land package. The survey identified numerous electromagnetic ("EM") conductor anomalies, including conductors coincident with the known volcanogenic massive sulphide ("VMS") deposits at Sun and SW Sun. Four key Target Areas (A to D) were subsequently defined. The conductive anomalies occur within the same S to SE-dipping volcanic-sedimentary package that hosts the current Sun mineral resource and other VMS deposits along the greater than 100-kilometre Ambler trend.

The Company believes the modelled conductors not only confirm the known mineralization at the Sun and SW Sun deposits but also define a series of compelling targets for potential resource growth and new discovery on the Sun property, where a fully funded 2026 drill program is currently underway.

Rick Van Nieuwenhuyse, Chairman, said: "Defining these robust, untested VTEM anomalies at the Sun claim block is a major milestone for Valhalla. Receiving high-resolution geophysical data of this scale and clarity in a proven VMS district underlines the vast untapped potential across our land package. These results reinforce the true district-scale nature of the Sun project and provide us with a powerful pipeline of high-conviction exploration targets as we advance the asset."

Highlights include:

Target A / Main Sun: the known Sun resource area, which remains open along strike and down-dip and has seen very limited drilling below 200 metres depth. Conductive plate modelling shows down-dip potential corresponding with known mineralization, with over 900 to 1,000 metres of modelled vertical extent, most of which remains untested by drilling.

Target B / Western Anomaly: a 2.5-kilometre-diameter, near-surface conductor coincident with a surface geochemical anomaly and located in the same host stratigraphy as Sun. Conductive plate modelling indicates over 600 metres of modelled vertical extent, with no past drilling completed on the target.

Target C: a conductive target with a similar VTEM signature to Main Sun and SW Sun, located in an area interpreted as a possible recumbent fold structure with complex folding. Conductive plate modelling indicates over 1,000 metres of modelled vertical extent, and the target has not been previously drill tested.

Target D: a weaker but still on-trend conductive plate signal aligned with Main Sun mineralization. The Company considers Target D a lower-priority target for follow-up relative to Targets A, B and C.

Figure 1: VTEM Survey - Electromagnetic Anomalies

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Figure 2: Modelled Conductor Plates

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Figure 3: VTEM Conductivity

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VTEM surveys are designed to identify conductive responses that may be associated with massive sulphide mineralization. At Sun, the Company has used reprocessed airborne VTEM data and conductive plate modelling to interpret the geometry, depth extent and relative priority of conductive targets within prospective volcanic-sedimentary host stratigraphy. The modelled plates at Main Sun support potential down-dip continuity below the known resource, while Targets B and C represent untested conductive anomalies in favourable stratigraphy. The Company also notes that the Ambler District hosts other significant VMS deposits, including Trilogy Metals Inc.'s Arctic deposit, which occurs in a similar district-scale geological setting and is associated with a comparable VTEM conductor signature.

The Company believes the combination of the current Sun mineral resource, the 2023 high-grade drill results, the highlighted VTEM conductive targets, and the broader VMS endowment of the Ambler Mining District represents significant near-term resource growth and new-discovery potential. The Sun project is also benefiting from a constructive development context in Alaska, including federal and state support for advancing Ambler District infrastructure, and Valhalla's currently active, fully funded 2026 drill program.

Sun Project Overview

The Sun Project is located in the Sun Hills at the eastern end of the Ambler Mining District, along the southern flank of the Brooks Range in northwestern Alaska. The ‎Sun property is comprised of 392 contiguous State of Alaska claims totalling approximately 25,382 hectares.

The Sun deposit is one of the most-advanced VMS deposit in the eastern part of the Ambler Mining District and is well situated for potential development being the first deposit along the proposed Ambler Access Road route.

The project currently hosts a NI 43-101 mineral resource (3) defined by a 100 drillhole database consisting of 1.71 million tonnes of Indicated mineral resources grading 1.48% Cu, 0.21 g/t Au, 60 g/t Ag, 4.32% Zn, and 1.11% Pb and 9.02 million tonnes of Inferred mineral resources grading 1.21% Cu, 0.25 g/t Au, 81.70 g/t Ag, 4.18% Zn, and 1.46% Pb.

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Mineral Resources are comprised of all model blocks at a $75 GMV cutoff using prices and recoveries: copper- $3.00/lb and 91%; lead- $1.00/lb and 80%; zinc - $1.10/lb and 91%; silver - $18/oz and 35%; gold - $1,300/oz and 59%.

The Effective Date of the Sun project resource estimation is October 1, 2021.

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

Rounding as required by reporting guidelines may result in apparent discrepancies between tonnes, grade, and contained metal.

Information pertaining to the Sun Project Mineral Resource Estimate is extracted from the technical report titled "Technical Report on the Sun Project, Brooks Range, Alaska, USA" prepared by Michael M. Gustin, C.P.G. of Mine Development Associates, A Division of RESPEC, for SolidusGold Inc. and filed on Sedar on May 18, 2022 Michael M. Gustin is independent as defined by NI 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

In 2023, Valhalla completed the construction of a new 24-person camp, providing the necessary infrastructure to support a multi-rig drill program, which included four diamond drill holes totaling 1,104 meters. The 2023 drill holes were strategically designed as step-outs to test for mineralization continuity along strike and down-dip and yielded high-grade results, such as:

13.7m of 3.07% CuEq (1.24% Cu, 0.92% Pb, 3.45% Zn, 0.16 g/t Au, and 55.79 g/t Ag) in hole Sun23-01; and

21.4m of 6.84% CuEq (1.31% Cu, 3.23% Pb, 11.03% Zn, 0.24 g/t Au, and 108.31 g/t Ag) within a larger interval of 52.4m of 3.3% CuEq in hole Sun23-04.

The 2023 drilling confirmed that the exploration upside at the Sun VMS deposit remains robust and open at depth.

In parallel with the new drilling, in 2023 Valhalla also relogged 1,416 meters of historical core and conducted comprehensive ground gravity, LiDAR, and orthophoto surveys to build a comprehensive modern geologic model. Using this updated model, Valhalla expects the next phase of drilling at Sun to target significant resource growth both along strike and at depth along known mineralized massive sulfide horizons.

For additional information regarding Valhalla's 2023 exploration program, including a full discussion regarding the results of the program and information regarding quality control and quality assurance measures undertaken in connection with the program, please refer to the Company's press release entitled "Valhalla Metals Reports High-Grade Mineralization from Maiden Drill Program at its Flagship Sun Project, including 21m of 6.84% CuEq", dated October 30, 2023, and filed on the Company's profile at www.sedarplus.ca .

*CuEq = (((Cu%) x $Cu x 22.0462)*0.91 + ((Pb%) x $Pb x 22.0462)*0.8 + ((Zn%) x $Zn x 22.0462)*0.91 + (Au(g/t)/$Au*31.1034768)*0.59 + (Ag(g/t)/$Ag*31.1034768)*0.35))/($Cu*22.0462); Commodity prices: $Cu = US$3.00/lb., $Pb = US$1.00/lb; $Zn = US$1.10/lb; $Au = US$1,700/oz., and Ag = US$20.00/oz.; Recoveries assumed to be 91% Cu, 80% Pb, 91% Zn, 59% Au, 35% Ag and were multiplied for each respective metal. Recoveries are based on the technical report titled "Technical Report on the Sun Project, Brooks Range, Alaska, USA" filed on SEDAR by the Company on May 18, 2022 and modelled after the recoveries of the neighboring Arctic VMS deposit Feasibility Study; Factors: 22.0462 = Cu% to lbs. per %, 31.1034768 = Au g/t to g per troy oz, and 31.1034768 = Ag g/t to g per troy oz.

Corporate Matters

As part of the Company's incentive and retention program, the Company has granted an aggregate of 3,171,000 stock options (the "Options") to certain directors, officers, consultants, and employees of the Company. The Options entitle the holder to acquire one common share of the Company at an exercise price of $0.70 for a period of five years. The Company also awarded an aggregate of 1,209,000 restricted share units ("RSUs") to certain directors, officers, consultants, and employees of the Company that vest after a twelve-month term.

Further to the Company's news release disseminated on July 29, 2026, the Company engaged Independent Trading Group (ITG), Inc. ("ITG") to provide automated market-making services. ITG will trade shares of the Company on the TSXV with the objective of maintaining a reasonable market and improving the liquidity of the Company's common shares. ITG will be responsible for the costs it incurs in buying and selling the Company's common shares, and neither the Company nor any third party will be providing funds or securities for the market making activities. In addition to the monthly fee payable to ITG of C$7,500, the Company paid a deposit of C$7,500 to ITG, which amount will be applied towards the fee payable in respect of the final month of the term or refunded to the Company if the term consists solely of the first month.

About Valhalla Metals

Valhalla Metals Inc. is a mineral exploration and development company advancing high-grade copper-zinc-lead-gold-silver volcanogenic massive sulphide (VMS) projects in Alaska's Ambler Mining District, one of the world's premier undeveloped polymetallic mineral belts. The Company owns the Sun and Smucker projects, which host substantial mineralized systems and significant exploration potential. Valhalla is focused on creating shareholder value through disciplined exploration, resource expansion, technical advancement, and responsible project development. Valhalla Metals' common shares trade on the TSX Venture Exchange and OTCQB under the symbols VMXX and VMXXF, respectively. Additional information is available at www.valhallametals.com .

This news 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.

Qualified Person

Ms. Bonnie Broman, CPG, Vice President, Exploration for Valhalla Metals Inc., is a Qualified Person as defined under National Instrument 43-101 standards and has reviewed and approved this news release.

Forward-Looking Statements:

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plan", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based, are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; and the additional risks identified in the annual information form of the Company or other reports and filings with the TSX-V and applicable Canadian securities regulators. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements included in this news release are expressly qualified by this cautionary statement. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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

For more information on the Company, please contact Valhalla Metals Inc.

Sorin Posescu, Chief Executive Officer Phone: 604-561-3194 Email: invest@valhallametals.com

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Newsfile Corp.

August 10, 2026 - 4:30 AM PDT

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