Cape Ray Shear Zone

Overview

AuMEGA Metals Ltd (ASX: AAM | TSXV: AUM | OTCQB: AUMMF) is a Canadian-focused gold and critical minerals exploration company advancing a district-scale land package in southwestern Newfoundland and Labrador, Canada. The Company controls more than 110 kilometres of strike along the Cape Ray Shear Zone (CRSZ), a major underexplored gold structure that also hosts the Valentine Gold Mine, now in production.

AuMEGA’s portfolio combines a defined mineral resource at Cape Ray with a pipeline of high-priority discovery opportunities across Cape Ray West / Isle aux Morts Granite, Bunker Hill, Cape Ray North, Intersection and Hermitage.

The Company is fully funded for its 2026 exploration program following the completion of an approximately C$30.1 million financing, supported by a strengthened institutional and strategic shareholder register including Condire Investors, B2Gold, Nokomis Capital, Franklin Resources and Schroders.

AuMEGA’s current Cape Ray Mineral Resource comprises 6.2 Mt at 2.25 g/t Au for 450,000 ounces of Indicated Resources and 3.4 Mt at 1.44 g/t Au for 160,000 ounces of Inferred Resources. The resource remains open along strike and at depth, with the Company evaluating potential enhancements through relogging, refined geological interpretation, additional drilling, higher gold price assumptions and the potential inclusion of silver.

AuMEGA applies a disciplined, systems-based exploration approach designed for Newfoundland’s glacially covered terrain. The Company integrates historic data, modern geophysics, surficial geochemistry, mapping, relogging and targeted drilling to rank opportunities and direct capital to the highest-conviction targets.

The Company’s current exploration focus is drilling-led. Geochemistry and geophysics are used to refine targeting and define scale, while diamond drilling is used to test the most compelling targets and advance resource-growth opportunities.

This approach has advanced several areas from early-stage datasets to drill-ready or near drill-ready targets, including Cape Ray West / Isle aux Morts Granite and Bunker Hill.

Pathfinder geochemistry remains an important screening tool across the portfolio, particularly where glacial cover limits outcrop exposure. Results are interpreted in the context of structural setting, host rocks, alteration, geophysical signatures and prior drilling, rather than as standalone exploration conclusions.

The 2026 exploration program is expected to be the Company’s largest diamond drilling program since 2021, with an initial plan of approximately 10,000 metres across the highest-priority targets and flexibility to scale based on results. Initial drilling is expected to include up to 5,000 metres at Cape Ray West / Isle aux Morts Granite and up to 5,000 metres at Bunker Hill. A drilling program targeting extensions to known mineralisation within the Cape Ray resource corridor is expected to be scoped over the coming months as ongoing relogging and geological work is completed.

Table 1 – Cape Ray Mineral Resource Estimate. Update the table to reflect the full 2023 Mineral Resource estimate across Central Zone, Window Glass Hill, Isle aux Morts and Big Pond, and retain the ASX Announcement 30 May 2023 reference.

Within the Cape Ray resource corridor, AuMEGA is evaluating potential resource enhancements, including a new geological and structural model, relogging of historic drill core, refined interpretations, additional drilling completed since the 2023 estimate, higher gold price assumptions and the potential inclusion of silver.

At Cape Ray West, including the Isle aux Morts Granite, recent work has elevated the area to a top discovery target. The Company plans mapping, sampling and focused drilling to test high-conviction targets associated with favourable structures, geophysical features and an emerging intrusive-related gold system interpretation.