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Canadian North Resources Inc. Reports Operational and Financial

Corporate Updates

Canadian North Resources Inc. Reports Operational and Financial

Results for the Six Months Ended June 30, 2026

Toronto, August 31, 2026 – Canadian North Resources Inc. (“Canadian North” or the “Company”) (TSXV:

CNRI; OTCQX: CNRSF; FSE: EO0 (E-O-zero)) reports its operational and financial results for the six months

ended June 30, 2026.

Dr. Kaihui Yang, President and CEO of the Company, commented: “In past six months, we have planned

further evaluation of bio-metallurgical technologies to produce market -ready battery-grade nickel and

cobalt compounds, copper and platinum-group metals (PGE) from a low-cost, low-carbon footprint mine

for the Ferguson Lake project. “

“The plan is based on the results from the expanded bioleaching programs completed in 2025. The new

tests confirmed high metal extraction of copper (87.7-90.6%), nickel (96.8-99.0%) and cobalt (96.9-99.3%)

and PGEs (>80%) at low temperatures that would not require external heat energy and addition of acid

(refer to Canadian North’s News Release on October 7, 2025) . Such a self-sustaining bioleaching system,

when optimized, can significantly simplify the previously proposed poly-metallurgical processes for the

Ferguson Lake Project.”

“Canadian North plans at Ferguson Lake to collect large bulk surface mineralized samples for further bio-

metallurgical testing, and to conduct exploration and definition drilling programs and engineering and

environmental studies.”

“The Company is actively communicating with investors and shareholders to raise funds for exploration,

geotechnical, metallurgical and environmental programs to support the prefeasibility evaluation of the

Ferguson Lake Project; and continues its engagement with the governmental agencies and local

communities to update and upgrad e permissions, permits and licenses required to advance project

development.”

First Six-Month of 2026 Highlights:

The Company also engaged in the following activities in the first half year:

• On April 15, 2026, the Company announced that it had elected to rely upon Coordinated

Blanket Order 51 – 933 Exemptions to Permit Semi -Annual Reporting for Certain Venture

Issuers ("CBO 51-933") and adopt semi-annual financial reporting. This news release is being

filed pursuant to CBO 51-933.

• On April 28, 2026, the Company reported operational and financial results for the year ended

December 31, 2025. During 2025, the Company continued evaluation of multiple metal

processing technologies for the Ferguson Lake Ni-Cu-Co PGE Project. The team expanded the

bio-metallurgical programs to produce market -ready battery -grade nickel and cobalt

compounds, copper and PGE metals from a low -cost, low -carbon footprint mine, and

achieved extraction rates of 99% nickel, 98% cobalt and 90.6% copper in the follow-up second

set of lab -scale bioleaching tests on massive sulphides; recovered more than 80% of

palladium and gold from the residues of the bioleaching tests. All base metals were extracted

from each bioleaching tests at low temperatures of 52 - 65oC without the addition of acid

and external heat. Such a self -sustaining bioleaching system can significantly simplify the

metallurgical process and signals strong potential for low energy consumption development

of the Ferguson Lake project. The Managemen t strengthened engagement with local

governments, Indigenous communities and completed environmental sampling and analysis

for updating and upgrading of licenses and permits. The team also increased communication

with investors and potential partners to su pport the future mine development of the

Ferguson Lake Project.

• On June 26, 2026, the Company announced the voting results for the election of its Board of

Directors at its Annual and Special Meeting of Shareholders held on June 25, 2026, in

Mississauga, Ontario. A total of 62,506,011 common shares were voted at the Meeting,

representing 54.68% of the common shares outstanding. Shareholders approved the re -

election of all Directors as listed in the Management Information Circular dated May 19, 2026,

and the reappointment of MNP LLP, Chartered Professional Accountants, as auditors of the

Company at a remuneration to be fixed by the directors. In addition, the resolution to ratify

and approve the Company's Stock Option Plan was passed.

Subsequent Event

• On August 26, Canadian North announced that it has authorized and approved the issuance

of a series of promissory notes designated as Series 1 Convertible Promissory Notes (each a

"Note") for up to an aggregate principal amount of $2,000,000 to be repaid by the

Corporation, together with inter est at the rate of 10% per annum by July 31, 2027 (the

"Financing"). The principal amount of each Note is convertible by the holders into Common

Shares of the Corporation at a conversion price of $0.25 per Common Share, for an aggregate

of up to 8,000,000 Common Shares of the Corporation. In that a director of the Corporation

will be participating in the private placement. The proceeds will be used as working capital

of the Company.

• On August 27, 2026, a director of the Company executed a subscription agreement for a

Series 1 Convertible Promissory Note in the principal amount of $1,000,000. The principal

amount bears interest at an annual rate of 10%, matures on July 31, 2027, and is convertible

into Common Shares of the Company at a conversion price of $0.25 per Common Share. The

transaction is subject to final acceptance by the TSX Venture Exchange.

For the six months ended June 30, 2026, The Company ended with cash and cash equivalents of $ 3,277

as of June 30, 2026 and reported a net loss and a comprehensive loss of $165,134 or $0.00 per share and

$190,316 or $0.00 per share, respectively, for the six months ended June 30, 2026.

Qualified Person:

Dr. Trevor Boyd, P.Geo. and Technical Advisor for Canadian North Resources, a qualified person as defined

by Canadian National Instrument 43 -101 standards , has reviewed the technical content of this news

release and has approved its dissemination.

About Canadian North Resources Inc.

Canadian North Resources Inc. is an exploration and development company focusing on the critical

metals for the clean -energy, electric vehicles, battery and high -tech industries. The company is

advancing its 100% owned Ferguson Lake nickel, copper, cobalt, palladium, and platinum project in

the Kivalliq Region of Nunavut, Canada.

The Ferguson Lake mining property contains a substantial National Instrument 43 -101 compliant

Mineral Resource Estimate announced on March 19 , 2024, which include s Indicated Mineral

Resources of 66.1 million tonnes (Mt) containing 1,093 million pounds (Mlb) copper at 0.75%,

678Mlb nickel at 0.47%, 79.3Mlb cobalt at 0.05%, 2.34 million ounces (Moz) palladium at 1.10gpt

and 0.419Moz platinum at 0.19gpt; and Inferred M ineral Resources of 25.9Mt containing 558Mlb

copper at 0.98%, 333Mlb nickel at 0.58%, 39.6Mlb cobalt at 0.07%, 1.192Moz palladium at 1.43gpt

and 0.205Moz platinum at 0.25gpt. In particular, 80% of the Indicated Mineral Resources is Open

Pit with 52.7Mt at 0.65% copper, 0.43% nickel, 0.05% cobalt, 0.97gpt palladium and 0.17gpt

platinum, which provides a solid Mineral Resource base for the initial development of a potential

large mine. The Mineral Resource model indicates significant potential for resource expansion along

strike and at depth over the 15 km long mineralized belt and a numbe r of undefined mineralization

zones and prospective areas. (Refer to “Independent Technical Report on the Mineral Resource

Estimate for the Ferguson Lake Project, Nunavut, Canada (“the Technical Report”)”, prepared by SRK

Consulting and Ronacher McKenzie Geosc ience Inc., effective March 19, 2024, filed by the Company

to SEDAR at http://www.sedar.com/ on May 3, 2024. The Technical Report has also been posted on

the Company’s website at www.cnresources.com .)

Further information please visit the website at www.cnresources.com,

or contact:

Dr. Kaihui Yang, President and CEO

Phone: 905 -696-8288 (Canada)

1-888-688-8809 (Toll -Free)

Email: [email protected]

Neither 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.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this news release, including statements which may contain words such

as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, or similar expressions, and

statements related to matters which are not historica l facts, are forward-looking information within the

meaning of applicable securities laws. Such forward -looking statements, which reflect management’s

expectations regarding the Company’s future growth, results of operations, performance, business

prospects and opportunities, are based on certain factors and assumptions and involve known and

unknown risks and uncertainties which may cause the actual results, performance, or achievements to be

materially different from future results, performance, or achievements expressed or implied by such

forward-looking statements.

These factors should be considered carefully, and readers should not place undue reliance on the

Company’s forward -looking statements. The Company believes that the expectations reflected in the

forward-looking statements contained in this news release and the documents incorporated by reference

herein are reasonable, but no assurance can be given that these expectations will prove to be correct. In

addition, although the Company has attempted to identify important factors that could cause actual

actions, events or results to differ materially from those described in forward looking statements, there

may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.

The Company undertakes no obligation to release publ icly any future revisions to forward -looking

statements to reflect events or circumstances after the date of this news or to reflect the occurrence of

unanticipated events, except as expressly required by law.