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South Pacific Metals Extends the Mineralized Structures at Megabe to More than 300 Metres of Confirmed Strike Length; Structures Open Along Strike and at Depth Step-out drilling places SPMC on the upper margin of a potential large epithermal vein system; high-grade target

Drill Results Corporate Updates

South Pacific Metals Extends the Mineralized

Structures at Megabe to More than 300 Metres

of Confirmed Strike Length; Structures Open

Along Strike and at Depth

Step-out drilling places SPMC on the upper margin of a

potential large epithermal vein system; high-grade target

drilling set to commence beneath ONED26-009

Vancouver, British Columbia--(Newsfile Corp. - August 24, 2026) -

South Pacific Metals Corp.

(TSXV:

SPMC) (OTCQB: SPMEF) (FSE: 6J00) ("

SPMC

" or the "

Company

") is pleased to announce assay

results from five drill holes, ONED26-010 to ONED26-014, at its 100%-owned Osena Project, located

immediately southwest of K92 Mining's Kainantu gold-copper mine in Papua New Guinea. The program

involved step-out drilling along the Megabe structures, and a first test of an adjacent structure to the

southwest. All five holes intersected mineralised structures. The four holes on Megabe mapping strike

extension to more than 300 metres, and the structures remain open along strike in both directions and at

depth; ONED26-010 confirmed that mineralisation extends beyond the Megabe corridor.

Highlights

More than 300 metres of confirmed mineralised strike at Megabe.

Step-out drilling has traced

continuous mineralised structures from ONED26-014 in the northwest to ONED26-012 in the

southeast.

ONED26-011 intersects a potential fourth mineralized zone at Megabe.

The hole returned

5.1 m at 1.79 g/t AuEq

from 313.3 m, including

3 m at 2.66 g/t AuEq

beyond the window

predicted by the Company's interpretation.

Information to date indicates the Company is above a significant intermediate-

sulphidation epithermal vein system.

Every reported hole targeting Megabe has intersected

mineralised structures, from the first intercept in ONED26-007 (12 m at 3.1 g/t Au, including

1 m at

18.1 g/t Au

) (see news release dated

June 16, 2026

); through the ONED26-009 discovery; four of

the five step-out holes reported today cut Megabe in the upper part of the system, above the high-

grade target zone.

Megabe is one of eight identified mineralised structures at Ontenu — most remain

undrilled.

Only small portions of three of the eight NW-trending structures — Jorkol, Onki and

Megabe — have been drill-tested across the five-kilometre Ontenu trend (see Figure 3).

Geometry defined — drilling now turns to the high-grade target.

The step-out program has

delivered the structural framework to drill the high-grade target at depth and down-plunge to the

southeast of discovery hole ONED26-009 —

5 m at 12.84 g/t AuEq

(including

2 m at 28.06 g/t

AuEq

) and

12.2 m at 6.24 g/t AuEq

(including 2 m at 16.65 g/t AuEq) (see news release dated

July 6, 2026

).

CEO Timo Jauristo commented

,

"These four holes confirm the Megabe structures hold together

along strike, are mineralised, and indicate the upper margins of an epithermal system. We think the

high-grade zones in hole ONED26-009 have only clipped the upper edges of the main system, and

we will drill a few deeper holes below ONED26-009 to test for continuity of high grade in that direction.

"It is important to note that we are currently drilling only one small section of Megabe and it is just one

of eight currently known NW-trending mineralised zones that have been mapped at Ontenu, most of

which have yet to be drilled. We have commenced planning for the next phase of exploration to test

these other known structures. Much of the Ontenu area remains to be mapped. Our immediate focus

is the deeper high-grade at Megabe, targeting veins showing the same character as Kora and Judd

next door at K92 — and will start drilling the first of these holes shortly."

Figure 1: Map view of Megabe Drilling

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/10890/311016_d67ce80874307a4f_001full.jpg

Vectoring High-Grade

Four of the five holes in this program were designed to define the geometry and strike continuity of the

Megabe NW trending structures. Every hole intersected the targeted structures, confirming that the

Megabe trend is continuous over more than 300 metres of strike (see Table 1 for a summary of drill

results). The structures remain open along strike in both directions and at depth: ONED26-012 and

ONED26-014 support the interpreted geometry of the structures, marked by the current limits of drilling,

not the limits of the structures (see Figure 1).

The step out drill program intercepted the top of the system, cutting the Megabe structures above the

interpreted productive high-grade zone and within the leached horizon, an area that we now understand

extends to at least 100 metres below surface.

Follow-up hole ONED26-011, drilled up-dip of previously released discovery hole ONED26-009, cut the

Megabe structures within the window expected in the Company's interpretation, returning

5.1 m at 1.79

g/t AuEq

in a potential

fourth mineralised zone

(see Figure 2). The result of this drilling effectively

supports vectoring towards stronger grades.

ONED26-010, tested a separate set of structures southwest of Megabe, intersected 18 m at 0.25 g/t

AuEq — confirming that mineralised structures extend beyond the Megabe corridor.

Octavio Garcia, Exploration Manager of the Company, commented

,

"Following confirmation of the

initial mineralised zone in drill holes ONED-007 and ONED-009, the objective of this step-out drilling

program was to define the key geological parameters of the system, including its geometry, continuity,

size, mineralisation controls and others required to validate the geological model.

"The results have confirmed several key parameters. Mineralised structures remain open in both

directions, while geochemistry indicates strong potential for continuity over more than 300 metres of

strike. We have also identified subparallel minor mineralised structures and a local leaching effect,

similar to that observed in the Kora vein. The data provide clear evidence of an intermediate-

sulfidation epithermal (ISE) system, comparable to neighbouring deposits. Recent drilling intersected

the upper zone of this hydrothermal system, while also expanding the mineralised envelope. Further

drilling is required to validate the geological model and determine the full extent of the system.

"The next phase will test vertical variability by drilling below the current mineralisation, helping

establish the system's position within the hydrothermal system and guide targeting of higher-grade

mineralisation."

Table 1: Summary of significant drill results, ONED26-010 to ONED26-014

Hole ID

From (m)

To (m)

Length (m)

Intercept Grade (weighted average)

Maximum Individual Sample Assay

Au (g/t)

Cu (ppm)

Ag (g/t)

AuEq (g/t)

Au (g/t)

Cu (ppm)

Ag (g/t)

ONED26-

010

81

84

3

0.35

45

0.05

0.36

0.82

47

0.05

183

188

5

0.29

73

3.36

0.35

1.07

128

10.1

including

187

188

1

1.07

128

6.5

1.18

1.07

128

6.5

213

231

18

0.18

130

3.53

0.25

0.9

265

11.7

ONED26-

011

11

18

7

0.23

1486

14.24

0.59

0.52

2911

29

51

53

2

0.51

176

7

0.63

0.76

234

7.8

56

71

15

0.32

117

2.42

0.37

2.09

154

5.6

including

69

70

1

2.09

137

2.8

2.15

2.09

137

2.8

76

79.3

3.3

0.68

152

2.37

0.73

1.77

165

4.1

including

78.6

79.3

0.7

1.77

164

4.1

1.85

1.77

164

4.1

85

86

1

0.56

65

3.3

0.62

0.56

65

3.3

108

109

1

4.53

85

0.4

4.54

4.53

85

0.4

120

124

4

0.6

77

1.8

0.63

1.27

102

2.1

including

120

121

1

1.27

51

1.9

1.3

1.27

51

1.9

including

123

124

1

1.03

84

1.7

1.06

1.03

84

1.7

129

131

2

1.76

132

1.4

1.79

3.24

149

1.9

including

130

131

1

3.24

114

0.9

3.26

3.24

114

0.9

143

144

1

0.24

229

6.3

0.36

0.24

229

6.3

256.07

257.9

1.83

0.56

59

6.82

0.67

0.69

89

11

263.2

264

0.8

1.27

582

26.4

1.72

1.27

582

26.4

274.5

283.6

9.1

0.24

766

7.04

0.42

0.71

5374

41

313.27

318.4

5.13

1.66

140

7.6

1.79

5.65

294

9

including

314.52

317.53

3.01

2.52

155

8.2

2.66

5.65

294

9

ONED26-

012

79.3

85

5.7

0.41

210

7.93

0.55

1.47

565

15.9

including

82

83

1

1.47

175

8.2

1.61

1.47

175

8.2

91.7

93.5

1.8

0.24

164

9.64

0.4

0.43

258

12

ONED26-

013

153.6

167

13.4

0.12

240

1.95

0.18

0.21

721

3.7

177

186

9

0.2

564

0.84

0.27

0.53

1460

2.3

195

206

11

0.14

396

1.21

0.19

0.49

765

2.4

234

234.9

0.9

1.18

237

0.6

1.21

1.18

237

0.6

ONED26-

014

77

87.1

10.1

0.37

695

3.89

0.5

0.78

5815

24.6

189.4

193

3.6

0.17

358

7.74

0.33

0.35

903

11.6

210

218

8

0.16

486

3.42

0.26

0.41

2072

7.2

231

232

1

0.68

123

3.2

0.73

0.68

123

3.2

Hole ID

From (m)

To (m)

Length (m)

Intercept Grade (weighted average)

Maximum Individual Sample Assay

Au (g/t)

Cu (ppm)

Ag (g/t)

AuEq (g/t)

Au (g/t)

Cu (ppm)

Ag (g/t)

*AuEq is based on 100% equal co-recoveries of Au, Ag and Cu using an Au price of US$4,180 per ounce, an Ag price of US$62 per ounce and a

Cu price of US$6.20 per lb. Intervals are calculated using a 0.1 g/t Au lower cut with a maximum of 3 m of internal dilution; "including" intervals are

calculated using a 1.0 g/t Au lower cut with a maximum of 2 m of internal dilution. Maximum individual sample assays are the highest single-

sample values reported within the stated interval and do not necessarily occur in the same sample. All intervals are reported as downhole lengths.

True widths have not yet been determined pending further structural interpretation.

Complete significant intercepts and drill hole collar details are provided in Appendix Tables A1

and A2 at the end of this release.

Figure 2:

Cross-section (Looking Northwest) of ONED26-009 and ONED26-011 with planned follow-up hole.

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/10890/311016_d67ce80874307a4f_002full.jpg

Figure 3: Map View of the broader Ontenu prospective area

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/10890/311016_d67ce80874307a4f_003full.jpg

Next Steps

Drilling has continued without pause. While assays from the Megabe step-outs were pending, both rigs

advanced to Ontenu Central to test the newly mapped NW-SE mineralised trends (Figure 3); two of the

four planned holes are complete and two are nearing completion. Assays from Ontenu Central will

provide a first test of these trends while drilling advances at Megabe.

At Megabe, the next two holes are planned to test for further high-grade targets below and down-plunge

to the southeast of the high-grade intercepts in ONED26-009, where the structures remain open. The

first rig will move to Megabe, with the second to follow on completion of the final Ontenu Central hole.

The broader Ontenu prospective area spans five kilometres and hosts at least eight identified

mineralised structures, of which only a small few have seen initial drill testing. As results from Megabe

and Ontenu Central are integrated, geological mapping is advancing across all known target areas to

build structural understanding of the mineralised trends ahead of systematic testing of the remainder,

including strike extensions of Jorkol, Megabe and Onki, and the mineralised trends at Ontenu Central.

Megabe is the most advanced of the eight structures identified to date. Assays for holes in progress will

be reported as they are received and validated.

Quality Assurance and Quality Control

All drill holes are logged on site by the Company's geology team. Drill core (PQ or HQ) is half-cut, with

samples secured and shipped to Intertek Laboratory in Lae, Papua New Guinea. Gold is assayed by 50

g fire assay with AAS finish (FA50/AA); copper and silver are assayed by 3-acid digest with AAS finish

(PGGA03) at Intertek Lae. Sample pulps are subsequently sent to Intertek in Perth, Western Australia,

for multi-element ICP-MS analysis using a 4-acid digest (4A/MS); the ICP-MS multi-element work is

pending for all holes noted in this release. Two certified reference materials (standards), one blank and

one duplicate are inserted within each batch of 100 samples to monitor laboratory performance.

Qualified Person

The technical and scientific information in this news release has been reviewed and approved by Dr.

Darren Holden, B.Sc. (Hons), Ph.D., FAusIMM, a technical advisor and consultant to the Company and a

"Qualified Person" as defined under National Instrument 43-101.

About South Pacific Metals Corp.

South Pacific Metals Corp. is an emerging gold-copper exploration company operating in the heart of

Papua New Guinea's proven gold and copper production corridors. SPMC has four exploration

properties:

Ontenu (Osena Project)

- Bordering K92 to the southwest. Drilling underway on K92-style targets

with drill hits to

5 m at 12.84 g/t AuEq

, including

2 m at 28.06 g/t AuEq

.

Anga

- Bordering K92 to the northeast, along strike from K92's Arakompa discovery; soils to

1,080 ppb Au

,

3,397 ppm Cu

and stream samples up to

281.8 g/t Au

.

Kili Teke

-

4.2 Moz AuEq

* NI 43-101 Inferred Resource (effective 18 November 2022) containing

1.81 Moz Au, 802 kt Cu and 40 kt Mo; results outside of resource include drilling

7.8 m @ 12.98%

Cu plus 11.75 g/t Au

, surface samples up to

27.5% Cu

.

May River

- District-scale system beside Frieda River; high-grade drilling includes

19 m @

11.47% Cu, 2.17 g/t Au

and

109 m @ 1.53 g/t Au

.

* Kili Teke resource information is drawn from the independent technical report dated November 18, 2022, prepared by Graeme J. Fleming,

B.App.Sc., MAIG, and available under the Company's profile on SEDAR+ at

www.sedarplus.ca

. Gold-equivalent contained ounces based on

equal recoveries of Au and Cu only and prices of US$3,300/oz Au and US$4.45/lb. Cu. Preliminary metallurgical test work by Harmony Gold

shows gold reporting to copper minerals, indicating the two can be co-recovered. Molybdenum is not included in the Au-equivalent figure.

SPMC common shares are listed on the TSX Venture Exchange (TSXV: SPMC), the OTCQB

Marketplace (OTCQB: SPMEF) and Frankfurt Stock Exchange (FSE: 6J00).

For further information please contact:

Michael Murphy, Executive Chairman

Tel: +1-604-260-0309

Email:

[email protected]

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.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian

securities laws. Forward-looking information is often, but not always, identified by words and phrases

such as "anticipates", "expects", "intends", "plans", "believes", "estimates", "may", "could", "would",

"will", "potential", "proposed", "subject to" and similar expressions, or statements that certain actions,

events or results "may", "could", "would" or "will" occur or be achieved. Forward-looking information in

this news release includes, among other things, statements regarding the Company's planned and

ongoing drilling and exploration programs, the timing and expected results of those programs, the

interpretation of geological, geochemical and geophysical data, and the potential for mineralisation on

the Company's properties.

Forward-looking information is based on the Company's current expectations, estimates, forecasts and

projections, as well as assumptions that the Company considers reasonable as of the date of this news

release. These assumptions include, among others: the continuity of mineralisation; the accuracy of the

Company's interpretation of geological, geochemical and geophysical data; the timing and results of

planned and ongoing drilling and exploration; the timeliness of assay results from third-party laboratories;

the Company's ability to obtain and maintain required permits and regulatory approvals; the continued

support of local communities and government stakeholders in PNG; the availability of equipment,

personnel and consultants; continued access to project sites; and general business, economic and

capital market conditions.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that

may cause actual results, performance or achievements to differ materially from those expressed or

implied by such forward-looking information. These risks and uncertainties include, among others: risks

inherent in mineral exploration and development, including that exploration may not result in the discovery

of an economically viable mineral deposit; the risk that drilling results, assays and geological

interpretations may not be indicative of the presence, continuity or grade of mineralisation; delays in

receiving assay results or in the progress of exploration programs; the risk that historical results and

third-party data may not be verified or replicated; uncertainties relating to mineral resource estimates,

including the Kili Teke Inferred Mineral Resource; the risk that planned exploration activities may be

delayed, modified, suspended or terminated; risks relating to title, permitting and access to mineral

properties; risks relating to operations in Papua New Guinea, including political, security, infrastructure,

community-relations and logistical risks; the Company's ability to fund its business and exploration

activities; commodity price volatility; currency fluctuations; and the other risks described in the

Company's public disclosure documents filed under its profile on SEDAR+.

Readers are cautioned not to place undue reliance on forward-looking information. The forward-looking

information contained in this news release is made as of the date hereof, and the Company does not

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

information, future events or otherwise, except as required by applicable securities laws.

APPENDIX

Appendix Table A1: All significant intercepts, ONED26-010 to ONED26-014 (0.1 g/t Au lower cut,

maximum 3 m internal dilution)

Hole ID

From (m)

To (m)

Length (m)

Au (g/t)

Cu (ppm)

ONED26-010

48.8

49.3

0.5

0.1

146

ONED26-010

81

84

3

0.35

45

ONED26-010

149

158

9

0.1

84

ONED26-010

166

169

3

0.22

87

ONED26-010

174

175

1

0.21

73

ONED26-010

183

188

5

0.29

73

ONED26-010

213

231

18

0.18

130

ONED26-011

11

18

7

0.23

1486

ONED26-011

31

32

1

0.37

126

ONED26-011

51

53

2

0.51

176

ONED26-011

56

71

15

0.32

117

ONED26-011

76

79.3

3.3

0.68

152

ONED26-011

85

86

1

0.56

65