Canagold Resources Secures $7.1 Million Financing for New Polaris Project

Canagold Resources Ltd. has successfully closed a $7.1 million financing round, securing the necessary capital for its ongoing projects. The company issued 5,319,149 common shares at $0.47 each and 8,846,154 flow-through shares (FT Shares) at $0.52 each, raising a total of $7,100,000. The net proceeds from the common shares will be used for working capital, administrative expenses, and project development.

The company received conditional approval from the Toronto Stock Exchange (TSX) for the Offering on September 8, 2026, and is currently seeking final approval. No finder's fees were paid in connection with the Offering, and the Common Shares and FT Shares were issued on a private placement basis. These shares are subject to a hold period of four months and one day, expiring on January 19, 2027.

Sun Valley Investments AG (Sun Valley) played a significant role in this financing, purchasing 6,413,462 FT Shares and 3,856,383 Common Shares. Prior to the closing of the Offering, Sun Valley beneficially owned 103,226,102 Common Shares, representing 48.25% of the Company's total issued and outstanding common shares. Following the closing of the Offering, Sun Valley's ownership increased to 113,495,947 Common Shares, or 49.75% of the Company's total issued and outstanding common shares.

As Sun Valley is an insider of the Company, the Offering is considered a "related party transaction" as defined in Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions (MI 61-101). The Company is relying on the exemption from valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(a) of MI 61-101, respectively, for the insider participation in the Offering, as the FT Shares and Common Shares purchased by Sun Valley in the aggregate do not represent more than 25% of the Company's market capitalization, as determined in accordance with MI 61-101.

Canagold Resources Ltd. is an advanced development company focused on advancing the New Polaris Gold-Antimony Project in northwestern British Columbia. The company completed a Feasibility Study for New Polaris in 2025 and continues to advance the project through environmental assessment, permitting, technical studies, and stakeholder engagement. The objective is to responsibly develop New Polaris into a significant gold and antimony operation while creating long-term value for shareholders and meaningful benefits for Indigenous Nations and local communities.