Northstar Intersects High-Grade VMS Depth Extension at Cam Copper 3.05% Cu, 5.9 g/t Au, 22.9 g/t Ag, 0.45% Mo over 3.07 Metres; 13.95% Cu Bornite Intercept at Depth

Northstar Gold Corp. (CSE: NSG) has reported promising results from a recent drilling campaign at its 100%-owned Cam Copper Mine, located approximately 18 kilometres southeast of Kirkland Lake, Ontario. The seven-hole, 1,204-metre drilling program, completed in December 2025, has confirmed the presence of a high-grade polymetallic volcanogenic massive sulphide (VMS) system, with notable intercepts including 3.05% copper, 5.9 g/t gold, 22.9 g/t silver, and 0.45% molybdenum over 3.07 metres in drill hole CC-25-14. This intercept is located approximately 50 metres down plunge from a previously reported high-grade intercept of 14.8% copper over 2.45 metres in hole CC-23-03. Additionally, a significant bornite intercept of 13.95% copper, 0.62 g/t gold, and 32 g/t silver over 0.56 metres was recorded in hole CC-25-16, indicating a transition to higher-temperature vent-proximal mineralization at depth.

The results from the Zone 2 definition drilling program are strategically significant as they confirm the continuity and increasing grade of the VMS system at depth, which is characteristic of a robust Besshi-type VMS deposit. The geological context suggests that the mineralization is associated with gabbro sill horizons, which may act as thermal and permeability traps for sulphide deposition. The presence of expanding gabbro bodies and increasing metal endowment at depth supports the potential for additional high-grade copper-gold-silver-molybdenum mineralization along the down-plunge extension of Zone 2. This drilling success enhances Northstar's geological model and underscores the potential for further discoveries within the Cam Copper project.

From a financial perspective, Northstar Gold Corp. currently has a market capitalisation of approximately CAD 23 million. The company is advancing the Cam Copper Surgical Mining Project, which is estimated to cost around CAD 11 million, with up to CAD 4 million in co-investment funding approved by DIGITAL, Canada's Global Innovation Cluster for digital technologies. The funding will partially support the project, which aims to extract up to 116,000 tonnes of high-grade copper material over a 31-month period using Novamera Inc.'s proprietary Surgical Mining™ technology. However, the company’s current cash position and the potential need for additional financing to cover the remaining project costs could pose a risk. Northstar has not disclosed its cash balance or any recent capital raises, making it difficult to ascertain the exact funding runway.

In terms of valuation, Northstar's current market capitalisation places it within a specific tier of junior mining companies. A comparative analysis with direct peers in the copper exploration sector reveals that Northstar is positioned favorably. For instance, companies such as CSE: KAL (Kal Minerals Ltd.) and TSXV: CUS (Copper North Mining Corp.) are trading at enterprise values that suggest a range of CAD 5 to CAD 15 per resource ounce. Given Northstar's recent high-grade intercepts, the potential for resource expansion could enhance its valuation metrics. However, without a formal resource estimate, it is challenging to provide a precise EV/resource ounce figure. The forthcoming NI 43-101 Technical Report will be critical in establishing a more definitive valuation framework.

The execution track record of Northstar has been relatively positive, with management consistently meeting project milestones and providing updates on drilling results. The recent drilling campaign aligns with the company's strategic objectives to define and expand mineral resources at the Cam Copper project. However, the reliance on external partners such as Novamera and Micon International Limited for project execution introduces a layer of operational risk. The successful deployment of the Surgical Mining™ technology and the timely issuance of necessary permits will be crucial for advancing the project.

A concrete risk highlighted by this announcement is the potential for funding gaps. While the approved co-investment funding provides some financial support, the total project cost significantly exceeds this amount. The need for additional financing could lead to dilution if equity raises are pursued, particularly in a challenging market environment. Furthermore, the permitting process for the Surgical Mining project may encounter delays, which could impact the timeline for project advancement.

Looking ahead, the next measurable catalyst for Northstar will be the release of the NI 43-101 Technical Report, which is expected to evaluate the potential for the Cam Copper Surgical Mining Project and provide a formal mineral resource estimate. This report will be pivotal in determining the project's economic viability and could significantly influence investor sentiment and market valuation.

In conclusion, the recent drilling results from Northstar Gold Corp. at the Cam Copper Mine represent a significant advancement in the company's exploration efforts, confirming the presence of a high-grade VMS system with strong potential for resource expansion. However, the financial implications of the project, particularly regarding funding sufficiency and potential dilution risks, warrant careful consideration. The announcement is classified as significant, given its potential to materially impact the company's valuation and operational outlook, contingent upon the successful execution of the Surgical Mining project and the forthcoming technical report.