Announcement • May 09
Daura Gold Corp. Provides Cerro Bayo Project Update Daura Gold Corp. has completed the first phase of drilling at Cerro Bayo completing 1,850 metres of diamond drilling in 18 drill holes and testing multiple target areas across a district-scale epithermal system defined by prior mapping, geochemistry, and geophysical surveys. The Phase I program satisfies the initial drilling commitment under the option agreement, which includes a minimum of 1,500 metres of drilling to be completed by April 30, 2026. This work represents Daura’s first systematic drill testing of multiple targets across Cerro Bayo and marks an important step in evaluating the scale and continuity of mineralization across the property. Assay results are pending and are expected to be received from Daura Gold in May 2026, representing a key upcoming catalyst for the Company. Phase II Drilling – Expanding Across Cerro Bayo and La Flora: Daura is planning a Phase II drill program in Third Quarter 2026, expanding exploration across both Cerro Bayo and La Flora. At Cerro Bayo, Phase II will focus on follow-up drilling, including step-out and extension holes designed to test continuity and further define zones identified during Phase I. At La Flora, the program will include initial drill testing of this emerging high-grade target. La Flora – High-Grade Surface Results: La Flora is a recently defined high-priority, high-grade target, following Latin Metals’ identification of visible gold and high-grade epithermal mineralization at surface. Previous surface sampling returned grades of up to 82 g/t gold and 1,239 g/t silver. Visible gold occurs within silica-rich vein material, consistent with high-grade epithermal systems. These structures are partially concealed beneath shallow overburden, suggesting potential for mineralization extending along strike and at depth. District-Scale Opportunity – Cerro Bayo and La Flora: The Cerro Bayo and La Flora projects are located within the Deseado Massif. Since 1990, the district has produced and defined more than 600 million ounces of silver and 20 million ounces of gold. At Cerro Bayo, exploration has outlined an 8 km-wide structural corridor hosting multiple low-sulfidation epithermal vein targets. Phase I drilling represents the first step in systematically testing this broader mineralized system, with Phase II expected to advance the most prospective zones. At La Flora, the combination of visible gold, bonanza-grade surface samples, and favourable geological setting highlights the potential for additional high-grade mineralization and reinforces its priority for initial drilling. Permitting Status: Cerro Bayo is fully permitted for drilling, allowing for continued advancement of follow-up work. At La Flora, drill permitting is in progress and is expected to be completed in due course, enabling initial drilling as part of the Phase II program. New Risk • May 05
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -CA$3.6m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$3.6m free cash flow). Shareholders have been substantially diluted in the past year (98% increase in shares outstanding). Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Market cap is less than US$100m (CA$30.1m market cap, or US$22.1m). New Risk • May 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Canadian stocks, typically moving 14% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Shareholders have been substantially diluted in the past year (98% increase in shares outstanding). Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Market cap is less than US$100m (CA$27.1m market cap, or US$20.0m). 
