SAGA Metals Commences Diamond Drilling at the Wolverine Heavy Rare Earth Element Project in Labrador — First Two Diamond Drill Holes Intersected Prospective REE-Bearing Volcanic Unit

SAGA Metals Commences Diamond Drilling at

the Wolverine Heavy Rare Earth Element

Project in Labrador — First Two Diamond Drill

Holes Intersected Prospective REE-Bearing

Volcanic Unit

VANCOUVER, B.C. – September 2, 2026 – SAGA Metals Corp. ("SAGA" or the "Company") (TSXV:

SAGA) (OTCQ X: SAGMF) (FSE: 20H) , a North American exploration company focused on critical

mineral discoveries, is pleased to announce that diamond drilling has commenced at its 100% -

owned Wolverine Heavy Rare Earth Element (“HREE”) Project in central Labrador, Canada.

Camp construction, crew mobilization, and supporting infrastructure are complete. A diamond drill

program of up to 5 ,000 metres is now underway. The program is designed with four components

that will be fully integrated: 1) detailed mapping of the previous identified mineralized zone to define

the volcanic stratigraphy and alteration associated with heavy rare earth mineralization, 2) grid

pattern diamond drilling with holes on 100 meter centres with 200m step outs along strike and down

dip to confirm and extend mineralization in the sub horizontal mineralized volcanic unit 3) evaluation

of other high priority prospects and 4) determination of mineralized rock properties, geochemistry

and metallurgical testing to advance the project toward a maiden NI 43 -101 mineral resource

estimate.

Figure 1: Diamond drill rig setup at sunrise on W26-001 at the Wolverine REE Project in Labrador. Gladiators

Duralite 1400 Track Rig was designed for the Wolverine Project and is built to bridge the gap between high -

capacity deep-hole diamond drilling and ultra-efficient jobsite mobility. Engineered for rugged, remote

exploration, this versatile rig combines powerful deep-drilling performance with self-propelled rubber tracks,

allowing it to move under its own power directly from hole to hole without calling in aircraft support.

Figure 2: Exploration camp setup on the Wolverine REE Project.

Exploration significance of the first drill hole - W26-001

SAGA Metals has completed the first two drill hole s (W26-001, W26 -002) on its Wolverine REE

project and first ever diamond drill hole on the property to date. The depth of that first sub vertical

drill hole was 182 meters including 169 meters of the shallowly dipping prospective REE-bearing

volcanic ash tuff unit. Historic pack sack diamond and rotary drilling did not exceed 50 meters depth

across property and only 36 meters into the prospective REE-bearing unit in the area of SAGA’s initial

drill hole. The second hole (176 meters EOH) intersected the same stratigraphy and alteration

markers despite a 200 meter step out along strike from W26-001.

Core logging identified alteration in the volcanic unit overlying the prospective REE-bearing volcanic

unit and through the prospective REE -bearing volcanic unit. The exploration objective was to

delineate the stratiform and stratibound REE-mineralization in the prospective volcanic unit.

However, a second mineralization style was identified in the prospective volcanic unit: sub vertical

breccia-fracture networks, oriented to the core axis, with related conjugate fracture sets are filled

and lined by sulphide+chlorite. Veins display chloritic wall rock salvages and banding (Figure 4).

The latter mineralization style is considered highly significant as the altered structure identifies a

new sub vertical exploration target and identifies the potential for defining a depth potential to REE

mineralization across the Wolverine property. T he sub vertical breccia -fracture networks provided

the pathway for up flow of hydrothermal fluid through the volcanic pile and subsequently lateral

migration into the sub horizontal volcanic unit.

Figure 3: Schematic mineral deposit model for the setting for various styles of REE deposits. SAGA Metals

has identified and is exploring for stratiform-stratibound and structurally-controlled mineralization in the

volcanic sequence and in peralkaline intrusions.

Consequently, SAGA’s main exploration target, thick stratiform and stratibound alteration is

confirmed and a second new structurally-controlled exploration target has been identified.

Geological mapping has identified additional altered fault zones within the prospective volcanic unit

peripheral to the area of the current grid diamond drill program. The recognition of intense propylitic-

to-acidic hydrothermal alteration, chlorite+pyrite, in both the stratiform and stratibound and

structurally-controlled volcanic unit are the products of a hydrothermal fluid that is capable of

transporting and depositing high-value critical metals.

There are many examples throughout the world of p eralkaline intrusions and related pegmatites

having be en enriched and prospective for rare earth el ements and high field strength elements:

zirconium, hafnium, niobium, tantalum, thorium, uranium, yttrium. SAGA’s exploration for REE

mineralization in shallowly dipping volcanic rocks identifies a little explored for mineral deposit type

within the family of ore dep osits formed by peralkaline magmas. Analog ous stratiform deposits

hosted in peralkaline volcanic rocks are Pennington Mountain, Maine, USA (tonnage unknown) and

Brockman (Hastings) Deposit, Western Australia (JORC Mineral Resource of 29.93 million tonnes at

0.93% TREO (www.rare-earth-mining.com/hastings-technology-metals/, 2026)).

Figure 4: Stratiform and stratibound alteration in the prospective volcanic unit: b edding-controlled

chlorite+sulphide alteration.

Prospecting in the southeast area of the property focused on REE-bearing pegmatite, having values

up to 21% TREO hosted in peralkaline granite. Pegmatite is exceptionally coarse-grained and occurs

as poly generation, sub horizontal, sheeted pegmatite swarm in coarse grained peralkaline granite.

The REE deposit model for ongoing exploration is sheeted pegmatite swarms within the uppermost

part of a volatile-enriched peralkaline magma chamber (Figures 3, 5).

Figure 5: Sub-horizontal coarse-grained sheeted peralkaline pegmatite located in the southwestern area of

the Wolverine REE project claim boundary.

Michael Garagan, Chief Geological Officer and Director of SAGA Metals, commented:

“It is an extraordinary thing to be on this ground, working in the well preserved Nukliavik volcanic-

hydrothermal system instead of chasing isolated showings can already be described as a complete

geological privilege. We can now correlate the same chlorite-pyrite replacement we saw in the 2025

RC chips in the diamond core, match the alteration halo metre by metre. Mapping and tracking that

system at depth is going better than we expected. W26 -001 looks like the cool, upper end of the

feeder. The job from here is to prove the footprint first, then follow the structures down to the hot end,

where the heavy REE typic ally live. T he camp is setup , mapping is validating a robust mineralized

footprint, and drilling is aiming to prove out a large deep system of heavy rare earths.”

Program Design: Prove Aerial Extent, Then Go Deep

The 2026 diamond program will first establish the aerial extent of the shallowly dipping mineralized

and altered prospective volcanic unit, then drill test the sub vertical structures for the potential and

distribution between light and heavy rare earth elements (Figure 6).

The proposed mineral deposit model is that late faulting of the volcanic pile within the within the

caldera created conduits for the vertical transmission of a REE -bearing hydrothermal fluid derived

from a volatile-enriched peralkaline granite to migrate laterally in selected stratigraphic units in the

volcanic sequence.

Building on historic exploration

Historic exploration defined a sub -horizontal REE exploration target in the volcanic tuff. W26 -001

extended the exploration potential by defining a greater width to alteration in the prospective unit and

identifying a sub vertical exploration target along the feeder faults.

The program builds on 25 reverse -circulation (“RC”) holes completed in 2025, which confirmed

broad, near-surface REE mineralization across a roughly 1.7 km by 1.2 km area, including 48.8 m at

0.77% TREO from 1.5 m in WOLRC25 -003 and a peak assay of 2.03% TREO, with heavy rare earth

oxides contributing approximately 24–28% of TREO. Surface sampling on the expanded land package

has returned grades of up to 21.6% TREO. Those results are historical context only; they are not

results from W26-001.

Figure 6: Regional geology of the Flowers Lake Igneous Suite and the caldera which is the focus of SAGA

Metals volcanic-hosted REE mineralization. First two diamond drill holes (in red) shown over the prospective

volcanic unit.

Next Steps

• Continue step -out and down -dip diamond drilling defining alteration in the prospective

volcanic unit and related structures

• Systematic sampling and assay of W26-001 and subsequent holes

• Compile the alteration intensity and styles with structure to vector towards the deeper parts

of the hydrothermal system

• Detailed core logging, structural measurements, and alteration mapping along with rock

properties, assays and QA/QC datasets required to support a future maiden mineral

resource estimate

Wolverine REE Project Overview:

The Wolverine REE Project now comprises nine (9) contiguous mineral licenses totalling

approximately 294.5 km², situated approximately 50 km west of Hopedale and 12 km inland from the

Labrador coast (Figure 7). The project is accessible by fixed -wing aircraft to the Hopedale gravel

airstrip, followed by helicopter to site. Infrastructure advantages include commercial air services,

ferry services, and road access in the towns of Natuashish and Hopedale, with co mmunities that

have established agreements with the nearby Vale Voisey’s Bay mine. The project is only 12 km from

tidewater, offering logistical support to potential year-round access.