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PEAK.V ·

Sun PEAK Provides an Update ON the Shire Project

Corporate Updates

SUN PEAK PROVIDES AN UPDATE ON THE SHIRE PROJECT

August 26, 2025 – Vancouver, BC – Sun Peak Metals Corp. (“Sun Peak” or the “Company”) (TSXV: PEAK |

OTCQB: SUNPF) provides an update on the Shire VMS and Gold Project in northern Ethiopia.

Further to the Company’s June 27, 2025 news release, Sun Peak has formally notified Ethiopia’s Ministry

of Mines of a force majeure declaration covering all six exploration licenses within the Shire Project. The

declaration, effective retroactively from March 2025, follows the Interim Regional Administration of

Tigray’s suspension of mining activities across the region. Sun Peak has also invoked force majeure under

the terms of its Joint Venture agreement with Ezana Mining Development plc (“Ezana”), with notification

accepted by Ezana.

The Interim Regional Administration has enacted the suspension to curb illegal mining activities. While

Sun Peak’s operations are currently limited to exploration and not mining, the Company supports these

measures and has suspended all fieldwork according ly. Social engagement programs remain active, and

communications with local communities continue uninterrupted.

Greg Davis, President & CEO, stated: “The declaration of force majeure ensures our exploration licenses

remain in good standing and that work commitments and expenditures are deferred until we can properly

return to the field. We appreciate the continued support from all levels of government in Tigray and

Ethiopia, and we remain fully committed to advancing the Shire Project. Our goal is to resume drilling as

soon as conditions allow and deliver on the significant potential for a large -scale copper -gold VMS

discovery.”

In parallel with its strong commitment to the Shire Project, Sun Peak is actively evaluating additional high-

potential opportunities globally. This approach ensures the Company is positioned to create shareholder

value while maintaining its focus on advancing the Shire Project once regional conditions stabilize.

ABOUT SUN PEAK METALS CORP.

Sun Peak is exploring the district -scale Shire VMS Project in the Tigray Region of northern Ethiopia. The

Shire Project is comprised of six exploration licenses and covers approximately 1,450 square kilometers in

the prospective Arabian Nubian Shield. The licenses are in the same geological environment as both the

Bisha Mine and the Asmara Projects. T he Meli and Terer Licenses are part of a j oint-venture agreement

with Ezana Mining, a private Ethiopian Company and the other four are 100% owned by Sun Peak.

COMMUNITY ENGAGEMENT AND HUMAN RIGHTS

Sun Peak has been active on engagement with communities and other stakeholders to ensure that

stakeholders provide consent and agreement to our activities that create surface disturbance, including

PRESS RELEASE

NR 2025-03

For Immediate Release

August 26, 2025

Vancouver, British Columbia

drill holes. All disturbance to the land will be reclaimed after completion of the exploration work. The

Company’s current operations in Ethiopia are exploratory in nature and cause very little surface

disturbance. Community engagement is performed by our experienced local liaison team before the

beginning of any activities, which encourages positive interactions. We consider Sun Peak’s presence and

continued support and involvement in the Tigray region a positive contribution and we consider our

conduct to be consistent with Multinational Enterprises Guidelines. Sun Peak is committed to doing

business with integrity and in an ethical manner that is clear and apparent to all internal and external

stakeholders. Sun Peak adheres to the Company’s Human Rights P olicy and does not tolerate violations

of human rights in any way, shape, or form, whether these violations are committed by Sun Peak

personnel or contracted third parties. Sun Peak has in place a thorough due diligence process which takes

into account a wide range of considerations, including human rights, that provides it with all relevant

information necessary to make informed decisions when initiating work programs.

ON BEHALF OF THE BOARD OF DIRECTORS OF SUN PEAK METALS CORP.

Greg Davis,

President, CEO & Director

FOR FURTHER INFORMATION, PLEASE CONTACT:

Greg Davis

(T): +1 (604) 999 1099

(E): [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.

Disclaimer for Forward-Looking Information

Certain information and statements in this news release may be considered forward -looking information or forward -looking

statements for purposes of applicable securities laws (collectively, “forward-looking statements”), which reflect the expectations

of m anagement regarding its disclosure and amendments thereto. Forward -looking statements consist of information or

statements that are not purely historical, including any information or statements regarding beliefs, plans, expectations or

intentions regarding the future. Such information or statements may include, but are not limited to, statements with respect to

the goal of making a significant discovery and the development of a large-scale project in Ethiopia and identifying other potential

properties and opportunities both in Ethiopia and globally. Such statements are subject to risks and uncertainties that may cause

actual results, performance or developments to differ materially from those contained in the statements. No assurance can be

given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Sun Peak

will obtain from them. These forward -looking statements reflect management's current views and are based on certain

expectations, estimates and assumptions, which may prove to be incorrect. A number of risks and uncertainties could cause

actual results to differ materially from those expressed or implied by the forward -looking statements, including without

limitation: These assumptions and ri sks include, but are not limited to, assumptions and risks associated with the state of the

political stability of Ethiopia, equity financing markets and results of future exploration activities by the Company. These forward-

looking statements are made as of the date of this news release and, except as required by applicable securities laws, Sun Pe ak

assumes no obligation to update these forward- looking statements, or to update the reasons why actual results dif fered from

those projected in the forward -looking statements. Additional information about these and other assumptions, risks and

uncertainties are set out in the "Risks and Uncertainties" section in the Prospectus filed with Canadian security regulators.