Karus Mining Inc. (CSE: KARU) is pleased to announce initial drill assay results from the 2026 diamond drilling program at the FG Gold Project part of Karus’ wider South Cariboo Gold District (Figure 1).

Karus Mining’s 2026 exploration program is focused on expanding high-grade mineralization at FG Gold, which hosts over 3 km of known mineralized strike and is part of a 25 km long structural trend which hosts several mineralized showings, much of which remains untested.

Highlights from the first two diamond drill holes include:

• 4.80 g/t Au over 14.55 m at 208.50 m down hole in hole FG-26-412, including:
  • 32.40 g/t Au over 1.00 m at 208.50 m, and;
  • 6.59 g/t Au over 3.05 m at 217.80 m.

• 13.35 g/t Au over 0.65 m at 201.20 m down hole and 11.55 g/t Au over 0.80 m at 208.60 m down hole in hole FG-26-411.

“This is a strong start to our 2026 exploration program,” said Chris Donaldson, President and CEO of Karus Mining. “The first two holes successfully intersected our target horizon and delivered broad intervals of gold mineralization, including high-grade intercepts, providing strong validation of our geological model. These results reinforce the potential for significant growth at FG and we look forward to building on this momentum as further results are received over the coming weeks.”

The program targeted a structurally controlled, northwest-southeast striking vein corridor in a Sediment-Hosted Vein (SHV) type setting. The first two holes (Figure 2) successfully intersected high grade gold values in the targeted structural horizon, demonstrating the continuity of mineralization in an arrangement compatible with the SHV model.

These results support the view that gold is concentrated within a structurally controlled vein corridor extending approximately 650 metres along strike and remaining open to the northwest and southeast. With the 2026 program focused on extending this corridor, the results provide an important early indication of the potential to grow the known mineralized footprint and uncover additional high-grade zones within this overall footprint at FG Gold.

Drilling concluded in late September with 11 holes completed for a total of 3,944.3 metres. Core logging, sampling and cutting of all drill holes has been completed, and the Company will report assay results once they have been received, compiled and interpreted over the coming weeks.

Table 1: Assay Results

*True widths unknown but estimated to be 70% – 90% of intercepted core width

 Figure 1: Karus South Cariboo Gold Projects

 Figure 2 – FG Gold Project Exploration

 Figure 3 – FG Gold Project Cross Section

Table 2: Collar Table

*Coordinates reported in UTM Zone 10 / NAD83 Projection

About the FG Gold Project

The FG Gold Project is a drill-stage gold project inside Karus Mining’s 100%-owned South Cariboo Gold District. The district covers about 1,000 km² of mineral claims in central British Columbia. FG Gold hosts sediment-hosted vein gold mineralization within deformed sedimentary rocks folded around the northwest-trending Eureka Syncline. Gold is concentrated in zones of increased quartz veining, which locally correspond to parasitic fold hinges which thicken the gold-bearing veins and create favourable traps for higher-grade mineralization.

Drilling in 2020 and 2021 found two structurally controlled vein corridors, each of which extends about 650 metres along strike and remains open to the northwest. Highlights included hole FG-20-377, which returned 31.4 metres grading 3.0 g/t gold and (notably for the current release) FG-21-406 which returned 116.2 meters grading 0.6 g/t gold.¹

Karus’s 2026 exploration program is designed to test the sediment-hosted vein model and extend the deeper of these two known high-grade corridors.

¹ Drill results are as reported in the Company’s technical report dated June 6, 2022, available on SEDAR+ and on the company’s website at https://www.karusmining.ca/filings/karus-tr-south-cariboo.pdf.

QA/QC and Qualified Person

Once the drill core was received from the drill site, individual samples were determined, logged for geological attributes, sawn in half, labelled, and bagged for assay submittal. The remaining drill core was then stored at a secure site in Horsefly, BC. The Company inserted quality control samples at regular intervals within the sample stream which included blanks, preparation duplicates, field duplicates, and standard reference materials with all sample shipments intended to monitor laboratory performance. Sample shipment was conducted under a chain of custody procedure.

Drill core samples were submitted to ALS Geochemistry in Kamloops and then assayed and analysed in their North Vancouver facility in BC. Sample preparation included drying and weighing the samples, crushing the entire sample to 70% <2mm, and pulverizing 1000 grams to 85% <75 µm (ALS method code PREP-31B). Primary analysis for gold was by fire assay of a 50 g aliquot with atomic absorption (AAS) finish (ALS method code Au-AA26). This method has a lower limit of 0.01 ppm Au and upper limit of 100 ppm Au. Gold assays greater than 10ppm are automatically analysed by gravimetric analysis (ALS method code Au-GRA22). If a sample has visible gold observed during core logging then that sample was analysed by metallic screening of a 1 kg pulp (ALS method code Au-SCR21). Multi-element geochemical analysis for elements other than gold was conducted by a four acid digestion followed by ICP-AES (Inductively Coupled Plasma – Atomic Absorption Spectroscopy) analysis (ALS method code ME-ICP61).

ALS Geochemistry is accredited to the ISO/IEC 17025 standard for gold assays, and all analytical methods include quality control materials at set frequencies with established data acceptance criteria. Parameters for ALS Geochemistry’s internal and Karus Minings’s external blind quality control samples were acceptable for the analyses returned.

Technical information with respect to FG Gold contained in this news release has been reviewed and approved by Dave Swanton, MSc, PGeo, Principal Geologist, Equity Exploration Consultants Ltd, who is Karus Mining’s qualified person under National Instrument 43-101 responsible for the technical matters of this news release.

About Karus Mining

Karus Mining is a British Columbia-focused gold exploration company advancing a portfolio of district-scale gold assets in two of the province’s most prospective mineral belts. The Company’s strategy is to create long-term shareholder value through the systematic exploration, resource growth and new gold discoveries.

Karus is the 100% owner of the approximately 1,000 km² South Cariboo Gold District, which includes the FG Gold and Gold Creek projects. The underexplored district hosts multiple gold systems, numerous high-priority exploration targets and extensive strike potential, providing significant resource and discovery potential.

The Company also owns the high-grade Mineral Creek Gold Project, located approximately 12 kilometres southeast of Port Alberni on Vancouver Island. Mineral Creek hosts multiple high-grade gold-bearing vein systems and represents an additional opportunity to unlock value within an emerging gold-district.

With new management and a strong technical team, substantial historical exploration investment across its projects, and an active exploration strategy, Karus is well positioned to capitalize on the growing demand for high-quality gold exploration opportunities. The Company offers investors exposure to multiple discovery opportunities, district-scale land packages, and significant long-term growth potential in one of the world’s premier mining jurisdictions.