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Labrador Announces Proposed Consolidation

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Labrador Announces Proposed Consolidation

CALGARY, ALBERTA – December 18, 2025 – Labrador Resources Ltd. (“Labrador” or the “Company”)

(TSXV:LTX) announces that it has mailed an information circular pertaining to an annual and special

meeting of shareholders (“ASGM”) of the Company to be held on January 14, 2026. At the ASGM, the

shareholders of the Company will be asked to approve a consolidation (the "Consolidation") of the

common shares of the Company (the "Common Shares") on the basis of one (1) post-consolidation

Common Share (each a "Post-Consolidation Share") for up to every three (3) pre-consolidation Common

Shares (the "Pre-Consolidation Shares") with the final Consolidation ratio to be determined by the

board of directors of the Company (the "Board"). It is not expected that there will be a change of name

in relation to the Consolidation.

The Company currently has 24,672,144 issued and outstanding Common Shares. No action will be

required by shareholders to give effect to the Consolidation, if approved by the Company’s shareholders

and the Board decides to proceed with a Consolidation. Each stock option, warrant, right or other

security of the Company that is convertible into Common Shares (the "Convertible Securities") that has

not been exercised or cancelled prior to the effective date of the implementation of a Consolidation will

be adjusted pursuant to the terms thereof on the same exchange ratio as a Consolidation.

No fractional shares will be issued as a result of a Consolidation. Any fractional Post-Consolidation

Shares to which a holder of such shares would otherwise be entitled shall be rounded up to the next

greater whole number of Post-Consolidation Shares if the fractional entitlement is equal to or greater

than 0.5 and shall be rounded down to the next lesser whole number of Post-Consolidation Shares if the

fractional entitlement is less than 0.5.

The Board and management of the Company believe that the anticipated higher share value resulting

from a Consolidation may benefit Labrador on a go forward basis by generating greater investor

interest, attracting equity financing and by potentially increasing liquidity for shareholders.

A further news release will be issued in the event a Consolidation receives shareholder approval and if

so, whether such Consolidation proceeds. Implementation of a Consolidation remains subject to the

approval of the TSX Venture Exchange.

Further details regarding the Consolidation are described in the Company's management information

circular dated December 10, 2025 which is available on www.sedarplus.ca.

About Labrador

Labrador's Common Shares are listed on the TSX-V under the symbol "LTX". More information on

Labrador may be viewed on www.sedarplus.ca.

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation.

Forward-looking statements include, but are not limited to, the Company's ability to obtain necessary approvals

from the Exchange and completing a proposed Consolidation, if approved by the Board. Forward-looking

statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable,

are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and

future events to differ materially from those expressed or implied by such forward-looking statements. Such factors

include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or

failure to receive board, shareholder or regulatory approvals; the price of metals including gold, silver copper and

cobalt; and the results of exploration programs. There can be no assurance that such statements will prove to be

accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements. Labrador disclaims any

intention or obligation to update or revise any forward-looking statements, whether as a result of new information,

future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Jeff Graw

CEO

Phone: (403) 477 9194

Email: [email protected]

John Aihoshi

CFO

Phone: (403) 617 9169

Email: [email protected]