Vancouver, British Columbia - TheNewswire - August 20, 2025:  Red Canyon Resources Ltd. (“Red Canyon” or the “Company”) (CSE: REDC | OTCQB: REDRF), is pleased to announce that final processing has been completed and inversion models have been received from Expert Geophysics Surveys Inc. related to a 258 line-kilometre mobile magnetotelluric (“Mobile MT”) heliborne survey completed in July 2025. This survey covered the entirety of Red Canyon's Kendal property located in west-central British Columbia. The Company is focused on impactful, value-added exploration to discover copper and copper-gold deposits in established mineral belts in North America.

Company Highlights:

• Mobile MT is a leading geophysical technology, which aids in the identification of geologic features, structures, alteration halos and contrasting lithologies in the subsurface. In addition, potential mineralization from near-surface to deeper than one kilometre from surface can often be inferred based on specific electromagnetic (EM) geophysical signatures. 

• Final processing and inversion modelling on the recently completed Mobile MT survey at Kendal identified a 4 km by 3 km, SW to NE trending series of elevated conductive rocks. Modelling by the Company shows multiple areas of elevated conductivity correspond with known areas of alteration and mineralization at Kendal.  

• Comparative studies of EM geophysical results over calc-alkaline porphyry copper deposits in BC and others worldwide often show associated conductive and resistive zones like those identified at Kendal.  

• Vectoring studies to identify the core areas of the Kendal porphyry system have been a priority for Red Canyon. Expanded field studies including detailed vein density/alteration mapping, lithogeochemistry, in addition to the Mobile MT geophysics, are being finalized prior to planned drilling this fall.  

Wendell Zerb, the Chairman and CEO of the Company, commented: "New Mobile MT results at Kendal suggest that the copper porphyry system is of larger scale than we previously mapped or modeled. Areas with elevated conductivity correspond well with known areas of pyrite/chalcopyrite mineralization and additional areas of elevated conductivity with adjacent resistivity highs are of particular interest. The expanded size potential outlined by the Mobile MT geophysics makes Kendal comparable in scope to some of the larger scale porphyry copper systems globally and we believe Kendal could host multiple porphyry centres. Our fall drilling will focus on the most advanced target at Kendal Ridge, which we believe corresponds with one of these high potential porphyry centres."

   

Kendal Project

Kendal comprises eight 100%-owned mineral claims totalling 3,582 hectares located in west-central British Columbia approximately 25 km northeast of the city of Terrace, a regional infrastructure hub with a well-serviced airport.  Infrastructure is excellent with four intersecting highways, hydroelectric power, rail corridors and port facilities approximately 120 km to the west at Prince Rupert.  The main project area has direct logging road access, 8 km east from Highway 16.  The project area lies within the traditional territory of the Kitselas First Nation.

 

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Figure 1:  Kendal project location map with Red Canyon claims and approximate outline of Mobile MT survey.

In the fourth quarter of 2024, a first ever five-hole drill program at the Company’s Kendal project confirmed the discovery of a new porphyry copper system. All drill holes intersected significant porphyry-style alteration, multi-generational vein sets and highly anomalous copper and molybdenum mineralization (see news release dated January 13th, 2025). To prepare for 2025 drilling, the Company has completed vectoring studies including alteration and vein density mapping, new lithogeochemical sampling and project wide Mobile MT geophysics.

Mobile MT - Expert Geophysics Surveys Inc.

Expert Geophysics Surveys Inc (“Expert”) completed 258 line-kilometres of Mobile MT on NNW to SSE lines, at 200 metre spacing, spanning the entire Kendal project area (Figure 1) in July 2025.

The final data processing, colour imaging and mapping have been completed. Red Canyon has reviewed the data and interpreted results with Expert and with independent 3rd party geophysicists and geoscientists familiar with this type of survey.

Final survey results defined through processing and inversion modelling, identified a 4 km by 3 km, SW to NE trending series of conductors and resistors at Kendal. Importantly, modelling suggests multiple conductive zones correspond with known areas of alteration/mineralization. New areas with similar conductive signatures suggest the Kendal mineral footprint has significantly expanded.

 

 
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Figure 2:  Resistivity slice at 250masl. Kendal project interpreted footprint of Kendal hydrothermal system defined by an extensive zone of relative conductivity (MMT resistivity low)

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Figure 3:  Expert TMI Magnetics

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Figure 4:  MT Inversion modeled resistivity cross section 1220 looking northeast

The 2024 diamond drilling program at Kendal encountered an extensive mineralized alteration footprint indicating a porphyry system with a massive amount of associated fluid flow. This large alteration footprint and corresponding multiple generations of hydrothermal veins provides confidence regarding the scale of the hydrothermal system.

New results from the Mobile MT further establishes confidence regarding the scale of the hydrothermal system at Kendal and its potential to host multiple higher-grade mineralized centres. Furthermore, work-to-date, provides strong evidence that areas of the Kendal system are eroded to the level of the primary potassic alteration zone of the porphyry system. This suggests vectoring to higher grade centres is likely lateral versus significantly at depth from areas previously drill tested. Mobile MT sections including Line 1220 (Figure 4) show areas of elevated conductivity and resistivity at, or relatively close to surface.

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Figure 5:  Kendal 2025 rock sample locations with highlighted Kendal Ridge area and additional priority target areas.

In Q2 of 2025, Red Canyon completed an expanded rock sampling program, collecting 231 samples. Work within the Kendal Ridge area (Figures 2, 3, 4, 5) outlined the strongest reported porphyry-style veining and mineralogy at Kendal to-date. The Kendal Ridge area is the focus for the planned 2025 drill program.

 

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Figure 6:  MT Inversion modeled resistivity cross section 1400 looking northeast

Mobile MT has outlined new areas of interest to the NE within the project area (Figures 2, 3 and 6). Section 1400 shows a continuous trend of elevated conductivity similar in scope to other known areas of interest. In addition, airborne magnetics show a series of complex magnetic highs and lows coincident with new EM signatures.  Outcrop exposure and thus geochemical sampling in this area is limited although historic stream sediment samples in drainages cutting the area have elevated geochemistry with values up to 465 ppm copper. Red Canyon plans to conduct additional geochemical sampling in the area later this year.

Comparable MT signatures for other copper porphyry mineral systems

Copper porphyry systems typically convey a wide range of EM related signatures depending upon the many variables that define any particular mineral system. For instance, porphyry systems with intact lithocaps versus systems with exposed mineral cores can manifest either elevated conductive or resistive EM anomalies. A summary study outlined in Figure 7 concluded BC porphyry copper deposits have a variety of signatures: most calc-alkaline systems (like Kendal) are associated with conductors given that these mineral systems typically have large associated pyritic or phyllic alteration zones. Within these systems the potassic core often manifests as a resistive target.

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Figure 7:  BC copper porphyry EM signatures Conductor or Resistor2.

Figures 8 and 9 show examples of porphyry copper systems respectively associated with rocks that yield Mobile MT conductors and resistors.

 

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Figure 8:  Mobile MT signature over Panantza and San Carlos copper porphyry deposits in Ecuador3. Both deposits are associated with an elevated conductive signature.

 

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Figure 9:  ZTEM test survey Mount Milligan copper deposit4.  Mineralized porphyry associated with an elevated resistive signature.

 

About Red Canyon Resources

Red Canyon Resources Ltd. (CSE: REDC | OTCQB: REDRF) is a geoscience-driven, discovery-focused mineral exploration company focused on exploring North America’s top copper jurisdictions. The Company’s core goal is to make impactful copper discoveries to benefit all stakeholders. Red Canyon has a portfolio of 100% owned1 copper and copper-gold porphyry exploration projects. The Company’s technical team consists of experienced geoscientists with diverse capital market, small cap and major mining company backgrounds, and a track record of success.

For more information, please visit the Company's website at www.redcanyonresources.com.

Red Canyon is part of the NewQuest Capital Group which is a discovery-driven investment group that builds value through the incubation and financing of mineral projects and companies. Further information about NewQuest can be found on the company website at www.nqcapitalgroup.com.

1’ Red Canyon has two projects subject to option earn in agreements whereby the Company can earn into 100% of the project.

2’ A Review of the Electromagnetic Response from Porphyry Deposits Within the Canadian Cordillera. Brendan Howe, Teck Resources. November 17, 2024, MDRU EM for Geologists.

3’ Detecting and recovering porphyry and epithermal mineralization systems with broadband natural field airborne EM – Mobile MT. Alexander Prikhodko.

4’ ZTEM Tipper AFMAG results over Mt. Milligan Copper-Gold Porphyry Deposit – Geotech

On Behalf of the Board of Directors

Wendell Zerb, P. Geol

Chairman and Chief Executive Officer

+1 (604) 681-9100

wzerb@redcanyonresources.com

For further information, please contact:

Brennan Zerb

Investor Relations Manager

+1 (778) 867-5016

bzerb@redcanyonresources.com

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Qualified Person:

The technical information contained in this update has been reviewed and approved by Wendell Zerb, P. Geol, a “Qualified Person” (“QP”) as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Zerb is not independent by reason of being the Chairman, President and CEO of the Company.

In presenting a number of examples of third-party mineral deposits in this release for comparison the Company in no way implies that future exploration on the Kendal project will necessarily result in the discovery of similar economic mineral deposits.  The qualified person of this report has not verified the information on the adjacent properties/deposit and the information disclosed is not necessarily indicative of mineralization on Red Canyon Resources projects.

Forward-Looking Statements:

This news release includes certain forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding future capital expenditures, exploration activities and the specifications, targets, results, analyses, interpretations, benefits, costs and timing of them, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as “pro forma”, “plans”, “expects”, “may”, “should”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “potential” or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, risks related to the anticipated business plans and timing of future activities of the Company, including the Company’s exploration plans and the proposed expenditures for exploration work thereon, the ability of the Company to obtain sufficient financing to fund its business activities and plans, the ability of the Company to obtain the required permits, changes in laws, regulations and policies affecting mining operations, the Company’s limited operating history, currency fluctuations, title disputes or claims, environmental issues and liabilities, as well as those factors discussed under the heading “Risk Factors” in the Company’s prospectus dated October 12, 2023 and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company’s profile on the SEDAR+ website at www.sedarplus.ca.

Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements, except as otherwise required by law.