Lavras Gold Approves Accelerated Drilling Program on Caneleira Target

Lavras Gold Corp. has approved an accelerated drilling program focused on the Caneleira Target at its Lavras do Sul Project in Rio Grande do Sul, Brazil. The company aims to expand the mineralized footprint and delineate shallow, potentially open-pit mineable mineral resources. This decision follows the high-grade, near-surface results announced on August 24, 2026, which include a 24.30 grams per tonne (g/t) gold intercept over 9 meters (m) from 87m, including 99.56 g/t Au over 0.85m, and a 9.31 g/t Au intercept over 4m from 10m, including 17.29 g/t Au over 2m from 11m.

The drilling program will prioritize the higher-grade portions of the system, characterized by abundant visible gold at shallow depths. The company believes these areas could provide early, higher-grade feed to the Fazenda-Butia development project. The program is expected to cover approximately 25,000 meters of diamond drilling over the next six to eight months, with four main objectives: footprint expansion, mineral resource delineation, mineral resource conversion, and grade focus.

The Caneleira Target, now consolidated to include Caneleira Central, Caneleira East, and earlier-stage targets to the west and north, has been reframed based on geological interpretation and a specialist technical workshop held in April 2026. The consolidation reflects the recognition of a larger hydrothermal system that extends beyond the previously defined areas.

In other project development news, Lavras Gold has completed the Environmental Impact Assessment (EIA) field studies, a critical step in advancing the Fazenda-Butia Project toward its Preliminary Environment License application by December 2026. The EIA fieldwork will be followed by the finalization of all EIA technical reports, which will then be submitted as part of the application.

Additionally, the company plans to conduct metallurgical test work on samples from the Caneleira Target, including higher-grade material, to assess the potential for gravity-recoverable gold following first pass crushing and ahead of milling. The coarse visible gold observed in the higher-grade intervals at Caneleira is the basis for this test work.

Lavras Gold's exploration efforts will focus on defining higher-grade mineral resources close to the surface, adjacent to its initial development project. The company expects to incorporate the results of the Caneleira program into the consolidated mineral resource update for the LDS Project, which is anticipated by the end of Q1 2027.

Doe, the company's President and Chief Executive Officer, commented, "Completing the EIA field studies is a major permitting milestone for Lavras and keeps us on track to submit our Preliminary Licence permit application before the end of the year. The inclusion of Caneleira reflects the significant potential we see in this nearby target and its ability to contribute to the next phase of the Fazenda-Butia Development Project."

The company's exploration team will continue to prioritize the higher-grade portions of the system, with the goal of enhancing the design and economics of the initial development project. No mineral resources have been estimated to date at Caneleira or Caneleira East, and there is no certainty that the drilling will result in the estimation of mineral resources in any category.