• Annual revenue of US$12.65 million and gross profit of US$4.95 million
• Open-pit mining resumed and commercial production commenced during fiscal 2026
• Year-end cash of US$16.35 million supports operations and continued advancement of Sandman

Borealis Mining Company Limited (TSX-V: BOGO) (OTCQB: BORMF) (FSE: L4B0) is pleased to report financial and operating results for the fourth quarter and year ended July 31, 2026. Annual financial results are drawn from the Company’s audited consolidated financial statements. All amounts are in United States dollars unless otherwise indicated.

Kelly Malcolm, President and CEO of Borealis, commented: “Fiscal 2026 marked the transition from processing historical stockpiles to active open-pit mining and commercial production at the Borealis gold mine. Annual revenue increased to $12.65 million and gross profit reached $4.95 million as mining and processing activities advanced. Our focus is on coordinating mining, crushing, stacking and leaching to establish more consistent production, convert inventory into gold sales and improve operating performance. Alongside this work, we are advancing the engineering, metallurgical and permitting activities needed to evaluate development of the Sandman gold project.”

Q4 Fiscal 2026 Highlights

Three months ended July 31, 2026; financial amounts below are rounded as reported in the MD&A.

• Revenue of approximately $3.63 million, gross profit of approximately $1.61 million and a gross margin of 44.2%.
• Net loss of approximately $0.13 million.
• Continued mine development, material movement, crushing, stacking and gold recovery at the Borealis Mine, supported by its principal mining contractor Ledcor.

Fiscal 2026 Highlights

• Revenue increased approximately 234% to $12.65 million from $3.78 million in fiscal 2025. Gross profit increased to $4.95 million from $0.49 million, with gross margin improving to 39.1% from 13.0%.
• Net loss narrowed to $4.74 million from $14.87 million in fiscal 2025.
• First production blast completed at the East Ridge open pit on January 28, 2026; mining subsequently advanced across the East Ridge and Deep Ore Flats pit areas.
• Completed a C$23.01 million bought deal financing and an updated preliminary economic assessment for Sandman.

Borealis Mine Operations Update

Operations early in fiscal 2026 focused on crushing, stacking and leaching historical oxide stockpiles while the Company prepared to resume open-pit mining. Following the January restart, mining and material movement progressed alongside operation of the existing heap leach pads and adsorption, desorption and recovery (ADR) facility.

During Q4, the Company focused on mine development and coordination of mining, crushing, stacking and leaching activities. Management also evaluated mine sequencing, material handling and processing improvements to support more efficient use of existing infrastructure.

Figure 1: Heap Leach Pad Progress – Borealis Mine Fiscal 2026

 Figure 2: East Ridge Pit Mining Progress- Borealis Mine Fiscal 2026

 Figure 3: Deep Ore Flats Pit Mining Progress – Borealis Mine Fiscal 2026

Operating Statistics

• Total material mined Ex-Pit: Q4 1,033 kilotons; FY2026 1,843 kilotons.
• Total material moved including rehandle: Q4 1,190 kilotons; FY2026 2,105 kilotons.
• Waste mined: Q4 783 kilotons; FY2026 1,445 kilotons.
• Ore mined: Q4 250 kilotons; FY2026 376 kilotons; strip ratio: Q4 3.1:1; FY2026 3.8:1.
• Material crushed: Q4 138 kilotons; FY2026 449 kilotons.
• Material stacked: Q4 150 kilotons; FY2026 466 kilotons. Note: 10kt of ROM was direct hauled to leach pad in July 2026.
• Average mined grades: Q4 gold 0.56 g/t ; FY2026 gold 0.53 g/t.
• Average stacked grades: Q4 gold 0.41 g/t; FY2026 gold 0.48 g/t. Gold poured: Q4 900 oz; FY2026 2,870 oz. Silver poured: Q4 1,356 oz; FY2026 2,877 oz.
• Gold sold: Q4 877 oz; FY2026 2,847 oz.
• Silver sold: Q4 1,229 oz; FY2026 2,751 oz.
• Realized prices: Q4 gold $4,056.34/oz and silver $57.87/oz; FY2026 gold $4,379.28/oz and silver $64.80/oz.
• Recoverable gold added to leach pads: Q4 1,315 oz; FY2026 4,748 oz. Estimated recoverable gold remaining at July 31, 2026: 2,573oz.
• Quarter-end and year-end stockpile and leach-pad tonnes, contained ounces and grades:
  • High grade ore stockpile: 131 kilotons at 0.60 g/t gold with an estimated 1,688 oz gold contained.
  • Active leach pad (HLP6): 540 kilotons stacked from project start to July 31^st 2026 at average stacked gold grade of 0.50 g/t.
• Operating workforce and safety performance:
  • Borealis has an operating workforce of approximately 22 people based on-site on weekly and rotating work shifts, in addition to the mining contractor crew of approximately 50 personnel.
  • Strong safety performance over fiscal year 2026. In April 2026, the operation surpassed 100,000 hours worked without a lost-time injury. Maintained safe production through significant ramp up of production and personnel on the mine site.

Financial Results

Annual revenue growth and higher gross profit reflected increased gold and silver sales as operations advanced. The smaller annual net loss also reflected the absence of the $6.89 million exploration and evaluation acquisition expense recognized in fiscal 2025 for the Gold Bull Resources transaction.

Annual periods ended July 31. Gross margin is gross profit divided by revenue, rounded to one decimal place.

Working capital is current assets less current liabilities.

Year-end inventory comprised $4,564,634 of stockpiled material and $7,980,382 of work in progress. Cash used in operations was $9.19 million, including the effect of a $10.61 million increase in inventory. Net financing cash inflows totalled $23.71 million, including the January financing and proceeds from exercises of warrants and options.

Q4 revenue was approximately $3.63 million, gross profit $1.61 million and net loss $0.13 million.

Following year-end, 688,889 warrants were exercised for gross proceeds of $212,395 (C$296,227).

These results should be read with the annual consolidated financial statements and accompanying MD&A filed on SEDAR+.

Sandman Gold Project

Borealis continued advancing its wholly owned Sandman Gold Project in Humboldt County, Nevada. During fiscal 2026, the Company completed an updated preliminary economic assessment (PEA) evaluating a conventional open-pit, heap leach operation. As announced on February 19, 2026, at a base-case gold price of $2,600 per ounce, the updated study outlined an approximately nine-year mine life and average annual gold production of approximately 38,000 ounces.

The updated PEA estimated an after-tax net present value of approximately $203 million at a 6% discount rate, an after-tax internal rate of return of approximately 105%, and initial capital expenditures of approximately $36 million. It contemplated processing loaded carbon from Sandman at the existing Borealis ADR facility, potentially reducing the need for a separate ADR facility at Sandman.

The PEA is preliminary in nature and includes inferred mineral resources considered too speculative geologically to have economic considerations applied that would enable them to be categorized as mineral reserves. There is no certainty that the PEA results will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

During fiscal 2026, Borealis advanced its wholly owned Sandman Gold Project toward a future construction decision, initiating engineering, technical and permitting programs following completion of the updated preliminary economic assessment. The Company engaged M3 Engineering & Technology Corporation as lead engineering firm and RESPEC to support mine planning, resource modeling, geotechnical, hydrogeological and environmental work. Environmental baseline studies and permitting strategy development were also initiated with Sunstone Environmental Solutions and U.S. permitting counsel Hunton Andrews Kurth.

During the fourth quarter, the Company announced a 5,000-metre drilling program, including approximately 1,660 metres of planned metallurgical and geotechnical drilling across Sandman’s four deposits: Silica Ridge, North Hill, Abel Knoll and Southeast Pediment. This initial phase is designed to provide samples for recovery testing and technical data for pit slope design, mine planning, infrastructure layout and permitting. The remaining metres are planned for resource expansion and exploration, targeting extensions of known mineralization and additional priority targets across the property.

These programs are intended to refine the development plan and reduce technical uncertainty while evaluating the potential to process loaded carbon at the existing Borealis ADR facility, which could lower Sandman’s initial capital requirements. Advancement remains subject to technical results, permitting, financing and a future construction decision.

Outlook

Borealis enters fiscal 2027 focused on translating the restart of open-pit mining into higher gold production and improved operating performance. Priorities include strengthening mining and processing efficiency, converting inventory into gold sales and maintaining disciplined cost and working capital management. As announced on October 22, 2026, the Company is targeting production of 15,250-19,250 ounces of gold from the Borealis Mine for the fiscal year ending July 31, 2027. In parallel, Borealis is advancing technical studies, engineering and permitting at Sandman to support a future construction decision and the Company’s longer-term objective of building a multi-asset Nevada gold producer.

Production guidance remains subject to operating conditions, metallurgical performance and the availability of funding. Advancement of Sandman remains subject to technical results, permitting and financing. The Company continues to incur operating losses and negative operating cash flow and remains reliant on production and access to capital to meet ongoing funding requirements.

Cautionary Statement Regarding Mineral Resources, Mineral Reserves and Production

The Borealis Mine does not have current mineral resources or mineral reserves established in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Historical estimates are not being treated by the Company as current mineral resources or mineral reserves and should not be relied upon as such.

The Company’s decision to undertake and expand mining operations at the Borealis Mine, including the Fiscal 2027 operating plan and guidance presented in this release, relies on internal modelling and management’s understanding of the property. These activities are proceeding without a preliminary economic assessment, pre-feasibility study or feasibility study supporting the production decision and establishing its economic and technical viability.

Consequently, the operating plan and production guidance carry greater uncertainty and a higher risk of technical or economic failure. Actual mineralized tonnages, grades, strip ratios, recoveries and production rates could differ materially from expectations. Mining and processing could also prove more difficult or costly than anticipated. There is no assurance that Fiscal 2027 guidance will be achieved or that operations will be economically viable.

Qualified Person

Technical information contained in this press release has been reviewed and approved by Kelly Malcolm, P.Geo., a non-independent Qualified Person as defined under National Instrument 43-101.

Borealis Mine

The Borealis mine property, located close to the town of Hawthorne, NV, is fully permitted and equipped for present mine operations and future expansion, with existing open pits, heap leach pads, modern infrastructure, and a functional ADR facility which produces doré bars. The project has historically produced over 600,000¹ ounces of gold from an open pit heap leach operation. It is an under-explored property and has not been drilled since 2011, aside from Borealis’ efforts in 2024 and 2025. The property possesses high grade expansion potential with robust historical drilling results, along with a number of untested regional targets. ¹Please see the Borealis Mine technical report entitled “NI 43-101 Technical Report, Project Status Report, Borealis Mine, Nevada, U.S.A.” authored by Douglas Reid, P.Eng. of SRK Consulting, dated February 16, 2024. The report can be found on SEDAR+ or the Borealis website.

The Borealis Project holds existing federal and state permits for mining and processing operations. However, certain permit modifications may be required for expanded production, and the timeline for such approvals is subject to regulatory review. The Company cannot guarantee the timing or success of any permit modifications that may be required for future expansions.

About Borealis

Borealis is a Nevada-focused gold mining and exploration company operating the Borealis Mine and advancing the Sandman gold project. Located near Hawthorne, Nevada, the Borealis Mine includes open-pit mining infrastructure, heap-leach pads and an adsorption, desorption and recovery (“ADR”) facility for gold recovery and doré production. The Company’s strategy combines production from its existing operations with exploration and development opportunities across its Nevada portfolio.