Canary Gold Corp. Outlines Technical Validation Pathway for Rio Madeira Alluvial Gold Project
CANARY GOLD OUTLINES TECHNICAL VALIDATION PATHWAY FOR RIO
MADEIRA ALLUVIAL GOLD PROJECT
Vancouver, British Columbia – June 25, 2026 – Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF;
Frankfurt: K5D) (“Canary Gold” or the “Company”) is pleased to provide a follow-up to its June 10, 2026
news release and announce that it has received additional technical observations and recommendations
from Clara Maria Lamus Molina, an internationally recognized geologist-engineer and specialist in the
evaluation and sampling of alluvial gold deposits.
The review supports the Company’s view that Rio Madeira represents a prospective large-scale alluvial
exploration target where the next phase of technical advancement will depend on disciplined validation
of paleochannel geometry, gravel continuity, recoverable gold content and volumetric grade. Ms.
Molina’s work provides Canary with a practical roadmap to advance from preliminary geological
observations toward systematic, representative and auditable technical data.
The Company believes the review represents an important next step in positioning the Madeira River
Project for future exploration milestones, evaluation of whether sufficient technical information can
ultimately support a National Instrument 43-101 compliant mineral resource estimate subject to
continued exploration success, additional drilling, representative sampling, QA/QC, recovery testing and
geological modelling.
Ms. Molina’s review highlights several positive indicators and technical priorities at the Madeira River
Project, including:
active alluvial gold mining observed within the Madeira River system;
visible free gold observed during the inspection of active alluvial mining operations within the
broader Madeira River system; these observations provide regional geological context only and
are not necessarily indicative of mineralization on the Company’s property;
favourable gravel intervals identified in areas of exploration interest;
geomorphological features compatible with alluvial plains, terraces, paleochannels and high-
energy channel environments;
paleochannels and coarse-gravel systems identified as priority targets for alluvial gold
concentration;
sonic drilling recommended as a preferred validation tool in priority target areas;
recovered-volume control recommended to evaluate gold content on a reliable volumetric
basis;
standardized logging, granulometry, gold-particle classification, QA/QC and chain-of-custody
procedures recommended; and
geological-volumetric modelling identified as a key step toward future resource-readiness.
As announced on June 10, 2026, recent deeper drilling has intersected targeted mature coarse
sediments, including gravels and sands, supporting the Company’s interpretation of a large-scale
paleochannel system associated with the Madeira River.
Figure 1: Preliminary interpretation of the Jaci Paraná Paleochannel target area at the Madeira River
Project. The interpreted paleochannel target remains prospective and requires validation through
systematic drilling, controlled sampling, volumetric analysis and QA/QC.
Mark Tommasi, President of Canary Gold, commented:
“Rio Madeira exhibits several characteristics commonly associated with alluvial gold systems, including
interpreted paleochannel targets, favourable gravel horizons and active alluvial mining within the
broader Madeira River region. The next step is disciplined validation. Ms. Molina’s review gives us a
clear technical pathway to test the project in a way that is systematic, auditable and meaningful for
investors.”
Mr. Tommasi continued:
“Alluvial gold systems are different from conventional hard-rock deposits. They are generally evaluated
on a volumetric basis, where the size and continuity of the paleochannel, the thickness of favourable
gravels, recoverable gold content, stripping ratio, processing efficiency and throughput are all
important. Our objective is to define the channel, measure the gravel, validate the grade, test recovery
and build the database step by step.”
Why the Alluvial Model Matters
Alluvial, or placer, gold systems are formed when gold is naturally liberated from source rocks,
transported by ancient or modern river systems and concentrated by hydraulic sorting within favourable
sedimentary environments such as coarse gravels, sand bars, terraces, channel bases and
paleochannels.
Canary’s exploration model at the Madeira River Project is focused on identifying preserved
paleochannel and high-energy gravel environments within the broader Madeira River system where gold
may have been naturally concentrated and preserved.
The Company believes the Madeira River Project is best understood through a staged alluvial-gold
development pathway.
Canary is currently in the early stages of this pathway. The Company has identified preliminary
geological indicators and priority paleochannel-style targets. The next phase is intended to validate
geometry, continuity, gravel thickness, representative grade and recovery characteristics.
Technical Program Focus
A central recommendation from Ms. Molina is the use of sonic drilling in priority target areas. Sonic
drilling is considered well suited to unconsolidated alluvial environments because it can improve sample
recovery, preserve stratigraphic relationships, reduce interval contamination, improve fine-material
recovery and support more accurate measurement of recovered sample volume.
These factors are critical in alluvial gold exploration, where gold distribution can be irregular and reliable
evaluation depends on representative sampling, volume control and repeatable recovery methods.
Future work is expected to focus on:
systematic sonic drilling in priority areas;
metre-by-metre geological logging;
recovered-volume measurement by interval;
controlled sample processing and gravity concentration;
gold-particle recovery, classification and weighing;
laboratory validation of selected samples;
robust QA/QC and chain-of-custody procedures; and
geological-volumetric modelling.
Figure 2: Conceptual alluvial-gold development pathway showing the technical progression from
discovery and paleochannel definition through drill delineation, bulk sampling, resource estimation,
economic studies, reserves and potential production. Canary is currently focused on early-stage
validation, and there is no assurance the Project will advance through all stages.
Sampling, Processing and QA/QC
Ms. Molina has recommended that future sampling programs incorporate a practical sample-processing
workflow appropriate for alluvial gold environments. Under this approach, samples from target horizons
may be screened through a 1/8-inch mesh, with the passing material washed and concentrated.
Concentration may be completed through skilled panning or, where appropriate, calibrated modern
gravity-concentration equipment.
The process is expected to include experienced technical supervision, gold-particle classification and use
of a deposit-specific particle-size-to-weight calibration chart to support consistent preliminary field
estimates.
The Company continues to review and refine its sampling and analytical procedures as exploration
progresses. The objective is to establish a representative, repeatable and auditable technical workflow
appropriate for alluvial gold and coarse gold environments.
Learning from Mature Alluvial Systems
Canary has also reviewed mature alluvial gold syste ms to better understand the technical pathway
required to move an alluvial discovery toward resource definition and potential development.
One relevant example is the Nechí alluvial gold sys tem in Colombia, operated by Mineros S.A. Nechí is a
long-running alluvial operation with NI 43-101 mineral resource and reserve disclosure, extensive drilling,
production history and operating reconciliation.
Canary cautions that Nechí is referenced solely as an educational and technical benchmark for how alluvial
systems can be evaluated and advanced when sufficie nt drilling, volume control, recovery testing, mine
planning and QA/QC have been completed. Nechí is no t located on or adjacent to the Madeira River
Project, is materially more advanced than the Madei ra River Project, and no inference should be drawn
that the Madeira River Project hosts comparable mineralization, grades, resources, reserves, recoveries,
economics or mining conditions.
Mr. Tommasi added:
“Nechí is not a direct comparison to Rio Madeira. It is a useful example of the level of technical discipline
required to move an alluvial system from concept to resource and operating model. Our objective is to
apply that discipline early at Rio Madeira and build the technical foundation required for future
decision-making.”
Management’s View
Canary believes the Madeira River Project represents an early-stage alluvial gold exploration project
with multiple targets requiring further technical validation. The Company’s immediate objective is to
advance from preliminary geological and field observations toward representative, auditable data that
can support future technical and investment decisions.
The Company is now reviewing budgets, logistics, ac cess and sequencing for a priority sonic-drilling a nd
sample-processing program at the Madeira River Project.
The Company cautions investors that exploration at the Madeira River Project remains at an early stage.
No mineral resource has been defined, and there can be no assurance that continued exploration will
result in the delineation of an economic mineral deposit. Geological interpretations, including
interpreted paleochannel targets, remain subject to further drilling, sampling, testing and validation.
Qualified Person and Technical Disclosure
The scientific and technical information contained in this news release has been reviewed and approved
by Andrew Lee Smith, P.Geo., a Qualified Person as defined by National Instrument 43-101 – Standards of
Disclosure for Mineral Projects.
Mr. Smith has previously visited the Company’s proj ect areas in Brazil and is familiar with the region al
geology and exploration activities. While not continuously present on site, Mr. Smith has reviewed drilling,
sampling, QA/QC and geological information and is satisfied that the information has been collected and
reported by site-based personnel in accordance with industry standard practices.
Mr. Smith is not independent of the Company within the meaning of National Instrument 43-101, as he
serves as Executive Chairman of Canary Gold Corp.
About Canary Gold Corp.
Canary Gold Corp. is a Canadian public exploration company focused on the acquisition and
advancement of gold projects in Brazil. The Company holds an option to earn up to a 70% undivided
interest in the Rio Madeira Project through a series of staged exploration expenditures and milestone
payments.
In August 2025, Canary further expanded its regional strategy by entering into a definitive agreement to
acquire a 100% interest in ten additional mineral tenements totaling approximately 94,700 hectares
from Talisman Venture Partners Ltd. , a private British Columbia corporation. The total consideration of
CAD $1.7 million has been satisfied through staged cash and share payments.
Talisman retains a 1.0% net smelter return (NSR) royalty on future production from the acquired
tenements, one-half of which (reducing the NSR to 0.5%) may be repurchased by the Company at any
time for CAD $1.0 million.
Together, these interests provide Canary Gold with a dominant and strategically consolidated land
position in the Madeira River region of Rondônia State — a historically productive and underexplored
gold region of Brazil.
For Further Information, Please Contact:
Canary Gold Corp.
Mark Tommasi, President
Tel: (604) 318-1448
www.canarygold.ca
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities laws that are not
historical facts. Forward-looking statements are of ten 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, inclu ding, without
limitation, statements regarding the Company ’s planned exploration programs and drill programs a nd potential
significance of results, are forward-looking statements that involve risks and uncertainties. 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 t hat could cause actual results to differ materially from the
Company ’s expectations include but are not limited to the r isks detailed in the Company ’s Prospectus and in the
continuous disclosure filings made by the Company w ith securities regulations from time to time. The r eader 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 resul t of numerous
known and unknown risks, uncertainties, and other f actors, 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. Forward-l ooking statements contained in this news release ar e expressly
qualified by this cautionary statement. The forward -looking statements contained in this news release are made as
of the date of this news release and the Company wi ll update or revise publicly any of the included fo rward-looking
statements only as expressly required by applicable law.
No securities exchange or commission has reviewed o r accepts responsibility for the adequacy or accura cy of this
release.
Disclaimer
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of
any securities in any jurisdiction in which such of fer, solicitation, or sale would be unlawful. The s ecurities of the
Company have not been and will not be registered un der the United States Securities Act of 1933, as am ended (the
“1933 Act”), or any state securities laws and may no t be offered or sold in the “United States” or to “U.S. persons”
(as such terms are defined in Regulation S under th e 1933 Act) unless registered under the 1933 Act an d applicable
state securities laws, or an exemption from such registration requirements is available.