South Pacific Metals Completes Private Placement

South Pacific Metals Corp., a Vancouver-based gold-copper exploration company operating in the heart of Papua New Guinea's proven gold and copper production corridors, has announced the successful completion of a best-efforts private placement of units (the "Offering"). The Offering, led by BMO Capital Markets, resulted in gross proceeds of C$20,008,810, with each unit (a "Unit") consisting of one common share of the Company (a "Common Share") and one common share purchase warrant ("Warrant") of the Company.

The Offering, which was conducted pursuant to an agency agreement between the Company and the Agents dated September 23, 2026, saw a total of 24,107,000 Units issued at a price of C$0.83 per Unit. This included proceeds from the full exercise of the option granted to the Agents to purchase an additional 6,027,000 Units. The Agents, which included BMO Capital Markets, Paradigm Capital Inc., and Velocity Trade Capital Ltd., received a cash commission of $1,200,528.60 in connection with the Offering.

Each Warrant entitles the holder to purchase one Common Share at a price of C$1.40 per Common Share for a period of 24 months following the closing of the Offering. At any time following the 12-month anniversary of the closing of the Offering, if the closing price of the Common Shares on the TSX Venture Exchange exceeds C$1.80 for 20 or more consecutive trading days, the Company may deliver a notice to the holders thereof accelerating the expiry date of the Warrants to a date that is 30 days after the date of such notice.

The Company intends to use the net proceeds of the Offering to expand exploration activities and for general corporate purposes. The Units issued under the Offering were issued pursuant to applicable exemptions from prospectus requirements under Canadian securities laws and are subject to a hold period expiring on January 24, 2027.

The Offering involved the issuance of 60,000 Units (for a subscription amount of $49,800) to a related party and therefore constitutes a related party transaction under MI 61-101. This transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the securities to be distributed and the consideration to be received for the securities issued to related parties under the Offering does not exceed 25% of the Company's market capitalization.

South Pacific Metals Corp. has four exploration properties: Ontenu (Osena Project), Anga, Kili Teke, and May River. The company has been active in the exploration of these properties, with recent drilling results indicating promising targets for further exploration. The Ontenu project, for example, has seen drill hits including 8.0 meters grading 8.95 g/t Au, 0.10% Cu, and 16 g/t Ag, and 12.2 meters grading 4.93 g/t Au, 0.50% Cu, and 55 g/t Ag. The Anga property, located along strike from the Arakompa discovery, has soil samples as high as 1,080 ppb Au, 3,397 ppm Cu, and stream samples up to 281.8 g/t Au. The Kili Teke property contains a 4.2 Moz AuEq NI 43-101 Inferred Resource of 237 Mt @ 0.34% Cu, 0.24 g/t Au, and 168 ppm Mo, while the May River district-scale system includes high-grade drilling results such as 19 meters grading 11.47% Cu, 2.17 g/t Au, and 109 meters grading 1.53 g/t Au.

The net proceeds of the Offering will be used to expand exploration activities and for general corporate purposes. The Units issued under the Offering were issued pursuant to applicable exemptions from prospectus requirements under Canadian securities laws and are subject to a hold period expiring on January 24, 2027. The Offering was conducted pursuant to an agency agreement between the Company and the Agents, and the Agents received a cash commission of $1,200,528.60 in connection with the Offering.