Dixie Gold Inc.: 6,000m+ Drill Program Commences at the Preston Uranium Project JV; Updates Other Portfolio Projects

(TheNewswire)

Vancouver, British Columbia – TheNewswire - June 25, 2025 – Dixie Gold Inc. (TSX VENTURE: DG)(“ Dixie Gold ” or the“ Corporation” or the “Issuer”) is pleased to provide a furtherupdate to its prior disclosures related to the Preston Uranium ProjectJV. The Corporation reports that as of June 20, 2025 it has receivedconfirmation that the planned 6,000m to 7,000m summer 2025 drillprogram at the Preston Uranium Project JV has commenced, with thedrill program being managed by the project’s operator, Orano CanadaInc. (the “Operator”). The Preston Uranium Project JV is atripartite joint-venture among Orano Canada Inc., Skyharbour ResourcesLtd. and Dixie Gold. The drilling underway at the Preston UraniumProject JV - in which Dixie Gold is a management committee member ofand minority JV interest holder in - is expected to drill testmultiple high-priority uranium targets during this summer. Asbackground, the Preston Uranium Project JV holds project area ofapproximately 49,635 ha, including dispositions that are adjacent toNexGen Energy Ltd.’s Rook-1 project

Consistent with the Issuer’s prior guidance, thecurrent drill program has a planned all-in budget of approx.C$3,500,000.

Figure 1 – Disposition Map of thePreston Uranium Project JV

Click Image To View Full Size

Parties with an interest in the Preston Uranium Projectare also referred to the recent news release - in which the Issuer isnamed - by Skyharbour Resources Ltd. (see Skyharbour Resources Ltd.news release, Skyharbour and JV Partner Orano to Commence Extensive Summer 2025 Drilling Program at Preston UraniumProject, dated May, 15, 2025). Skyharbour Resources Ltd. was theIssuer’s first project co-partner as relates to the Preston UraniumProject, with Orano Canada Inc. later completing its earn-in to formthe joint venture (see Dixie Gold news release, Orano Canada Inc.Completes First Earn-In Option and Forms Joint Venture with Dixie GoldInc. at the Preston Uranium Project, dated March 26, 2021).

As at December 31, 2024, Dixie Gold held an approximate21% interest in the Preston Uranium Project JV, although this interestlevel is expected to materially decline upon completion of thecommenced drill program. The Issuer – cognizant of its portfolio ofinterests and capital constraints - undertook its approval of themulti-million-dollar drill program expense through project-leveldilution as opposed to company-level equity dilution (which would havediluted across all project interests).

The Issuer presently expects that the drill programshould be completed by late-summer 2025, with results likely known bylate-fall. Dixie Gold will issue further public disclosure uponreceipt of results from the Operator if a discovery is made or ifother material-development occurs. A discovery would be expected to bematerially positive to the Issuer, despite interest dilutionanticipated as a result of the approx. C$3,500,000 drill programbudget. If the results of the high-priority targets to be testedduring the summer 2025 drill program at the Preston Uranium Project donot result in a discovery or are not material, the Issuer does notanticipate issuing further public disclosure thereon. In such anevent, the Issuer would also re-assess its forward-interest in thePreston Uranium Project JV, recognizing that dilution provisionsultimately extinguish working interests absent material ongoingcapital contributions. The Issuer notes that such future fundingrequirements, inclusive of the current drill program, are expected tobe and/or remain above the Issuer funding capacity based upon theIssuer’s reported working capital and the funding market surroundingits market-based capitalization. With the drill program targeting highpriority targets, the Issuer believes that the current programrepresents an appropriate program of scale and point-in-time toafter-evaluate its continued interest.

Dixie Gold looks forward to the results of the multiplehigh-priority uranium targets expected to be drill tested this summerby way of the underway drilling and extends its appreciation to OranoCanada Inc. for their efforts and expertise in managing theprogram.

Update Regarding Other PortfolioProject Interests & Management Commentary

Management of the Issuer also wishes to highlightcertain regional activity and provide project commentary related toother portfolio interests held by Dixie Gold, as well as discuss itsapproach to managing its current project pipeline against fundingconditions/levels.

Dixie Gold has and continues to aim to have a portfolioof at-scale exploration interests that provide it with opportunitiesand importantly, even-driven optionality for the Issuer’sshareholders. This process has been assisted, in material amount, bypast funding investments made into the Issuer by current management.The Issuer looks to undertake its activities with prudence to thehigh-risk, low-success nature of early-stage mineral exploration, theobligatory costs of running a publicly tradedcorporation, as well as to the Issuer’s capital structure and marketconditions. Exploration work undertaken by Dixie Gold is, bydefinition, within the confines of the Issuer’s limited marketcapitalization and any partnerships on specific assets that wouldgenerally also relate to and reflect that arm’s-length metric.Management of the Issuer has successfully facilitated significantexploration work at the Issuer’s projects and interests over time,including - as the most recent example - the current 6,000m+ drillprogram at the Preston Uranium Project (as discussed above and priorthereto within its publicly filed materials).

The Corporation has 31,737,188 common shares issued andoutstanding, which Dixie Gold believes represents compelling exposure,on a per share basis, to its various interests.

In tandem with its sector, the Issuer needs to raisecapital and/or divest project interests to fund both projectexploration and expenses associated with being a listed entity.Depending upon Issuer and/or sector valuations, dilution may bematerial. The Corporation notes that it provides public updates wherematerial and when appropriate, and not on a preset schedule (apartfrom ordinary course prescribed financial reporting obligations). Thefrequency of event-related updates may be intermittent in nature dueto activity levels that the limited working capital position of theIssuer permits. The Corporation’s view towards its share structurehas been (and remains) an internal priority. Where dilutionnecessarily occurs to meet the capital costs of adding new projects,advance/explore existing projects and fund its required andordinary-course public company costs, the Issuer has generally soughtto place such equity with parties who are more likely to align withlonger-term shareholdings versus those who may be seeking to engage inshort-term placement flipping to the detriment of remainingshareholders.

Rottenstone Area Update(Saskatchewan)

As corresponds to other interests held by Dixie Gold inSaskatchewan beyond the Preston Uranium Project JV, the Issuer ismonitoring for awaited results of the recently completed drill programby Ramp Metals Inc. (see Ramp Metals Inc. news release, Ramp MetalsCompletes Spring Drill Program and Announces Additional Mineralizationat Rush Target, dated June 6, 2025), which Dixie Gold expects mayassist with helping to determine next steps, if any, as relates to thevarious dispositions it cost-effectively acquired near the Rottenstonearea during the course of 2025 (see also news releases by the Issuerdated January 17, 2025 and January 20, 2025). The Issuer notes thatthis emerging exploration camp may represent an area of sustainedinvestment community interest going-forward, subject to favourableresults from the spring 2025 follow-up drill program by Ramp MetalsInc.

In regards to the region, the dispositions held by theIssuer principally relate to the Hickson Lake Pluton, including itsmapped quartz diorite unit, which is of interest to the Issuer giventhat Ramp Metals Inc. intersected 73.55 g/t Au over 7m within quartzdiorite (see Ramp Metals Inc. news release, Ramp Metals InitiatesDrill Program for the Rottenstone SW Gold Property, dated April 2,2025). A successful drill campaign by Ramp Metals Inc. within theirquartz diorite would be expected to increase theIssuer’s interest in examining its quartz diorite coverage, whereapplicable, although the Issuer cautions that current geologicalmodels for the area are early stage given limited exploration historyof the region and the recency of the original Ramp Metals Inc. golddiscovery in 2024 (see Ramp Metals Inc. news release, Ramp Metals Announces New High-Grade Gold Discovery of 73.55g/t Au over 7.5m at its Rottenstone SW Project, dated June 17,2024).

Among the dispositions of Dixie Gold are thosehighlighted by Figure 2 below:

Figure 2 – Highlight Map ofRottenstone Area Dispositions

Click Image To View Full Size

As reported by the Issuer in its Management Discussion& Analysis for the period ended March 31, 2025, as dated May 25,2025 (available on sedarplus.ca), the Issuer paid the Crown $44,917 infees during the first quarter of 2025 to establish an inaugural miningclaim position in the area, which in turn provides the Issuer withfavourable risk-reward optionality to participate in regionaldevelopments (if and as warranted). During the second quarter of 2025,the Issuer has supplemented its dispositions in the area, consistentwith its prior guidance (see Dixie Gold news release dated January 20,2025). Most recently, the Issuer – by way of management’sexpertise and proficiency - was successful in acquiring certainincremental grass-roots areas (including areas adjacent to priordispositions held by the Issuer) during a public Crown re-openingevent on June 3, 2025, with that re-opening having competitiveconditions amongst various parties. Inconjunction with said Crown re-opening, the Issuer remitted aggregateCrown fees of approx. $13,072 entitling it to additional dispositionarea of approx. 21,786 ha (Figure 2 above is updated with inclusion ofsuch area, where applicable).

Determination of forward project materiality, if any,will be made in conjunction with the factors and future third-partyresults discussed above. The Issuer looks forward to seeing if theadditional drilling by Ramp Metals Inc. is able to successfullyfollow-up on their 2024 discovery intercept.

Red Lake Project (Ontario)

The Issuer and its management team is also concurrentlymonitoring for results of an in-progress drill program by Kinross GoldCorporation with respect to their earn-in on BTU Metals Corp.’sDixie Halo Project (see BTU Metals Corp. news release, KinrossCommences 8,000m Drilling Program on BTU's Dixie Halo PropertyAdjacent To Kinross' Great Bear Project, dated May 20, 2025), whichDixie Gold believes may, if near-term future results are favourable,draw more investor interest back to the area. Kinross Gold Corporationacquired its interest in the adjoining Great Bear Project through itsacquisition of Great Bear Resources Ltd. in February 2022 (see KinrossGold Corporation news release, Kinross completes acquisition of GreatBear Resources, dated February 24, 2022); the project area of whichwas later supplemented through a transaction with BTU Metals Corp.(see BTU Metals Corp. news release, BTU Announces Agreements withKinross Gold Corporation: Private Placement, Asset Purchase Agreementand Option Agreement, dated February 23, 2023).

Through various efforts led by the Issuer’sexperienced management, Dixie Gold has to-date been successful inmaintaining a significant project in this exploration camp, whilesimultaneously being successful in retaining a compelling sharestructure, factors of which have so far kept open favourable per-sharemetrics around this project.

Last year, during the summer of 2024, Dixie Goldannounced a transaction with Kinross Gold Corporation, which involvedfour claims from the Issuer’s broader Red Lake Project (see DixieGold news release, Dixie Gold Inc. - Red Lake Gold Project Update,dated July 10, 2024). Consideration and terms were detailed in theaforementioned news release, and the Issuer continues to hold a 2.5%NSR on the four claims that it vended to Kinross GoldCorporation.

Management is currently working on efforts to allocateand distribute the Issuer’s remaining banked assessment credits –obtained to-date through previous exploration work – to meetupcoming anniversary assessment requirements of certain core miningclaims underpinning its Red Lake Project. The Issuer notes generallythat mining claims in Ontario have annual assessment review periods.Dixie Gold expects that in conjunction with this process and itsproject goals, that non-core portions of the project area may bereverted to the Crown in the due course of time. The Issuer isrequired to balance its limited market capitalization and constrainedjunior mining funding conditions against substantial fundingrequirements of its wide-scale project portfolio, which in turnnecessitates rationalization and prioritization. To- date, the Issuer has successfully maintained both its RedLake Project and share structure, although future outcomes to eithercannot be assured. Crown-imposed assessment demands across theIssuer’s portfolio materially exceed the Issuer’s reported on-handcapital, which places capital-based limitations on the amount ofactivity (e.g. exploration) that the Issuer can directly andfinancially undertake at the current time - particularly void oflarge-scale equity dilution - and which in turn is expected tocontribute to rationalization of project interests to those deemed ofhighest priority, and/or to obtain additional or new project interestswith improved forward-dated assessment requirements and/orjurisdictional characteristics.

Dixie Gold aims to balance the pace of explorationwithin its project portfolio against the pace of equity dilution toits capital table, there being related trade-offs at all times.

Among a range of other ongoing work and regulatoryduties associated with the Issuer, management also continues toevaluate various matters corresponding to the Red Lake Project,including – as contextually set within the market capitalization andfiscal limitations of the Issuer - those reported by the Issuer inrecent news release (see Dixie Gold news release, Dixie Gold Inc.Reports Additional Asubpeeschoseewagong Anishinabek Correspondence,dated April 16, 2025).

The outlined claim area of the Issuer’s Red LakeProject, which is subject to forward-variance, is highlighted inFigure 3 below.

Figure 3 – Map of the Issuer’sRed Lake Project Mining Claims

Click Image To View Full Size

Phoenix Lithium Project

The Corporation also presently holds mining leases inthe Northwest Territories related to its Phoenix Lithium Project,which are satisfied through annual rent payments to the Crown. TheIssuer intends to prioritize (and soon allocate) a portion of itsexisting working capital to make the next series of Crown rentpayments due later this summer for certain of said aforementionedCrown leases. Successful past work by management to facilitate therestructuring of this mining project into long-duration mining leases(from initial mining claims) enables the Issuer to cost-effectivelyextend its entitlements during lithium market cycles, with presentconditions representing a period of lowered sentiment towardslithium.

Disclaimer Regarding Third-Party NewsReleases

The Issuer is not responsible forthe content, technical or otherwise, of any third-party newsreleases.

Disclaimer Regarding AdjacentProjects

The Issuer cautions that pastresults or discoveries on proximate or adjacent projects are notnecessarily indicative of the results that may be achieved on projectsor project interests held or operated by the Issuer.

Qualified Person

Antonio Carteri, P.Geo., and a“Qualified Person” as defined by NI 43-101, has reviewed andapproved the technical information contained in this newsrelease.

About Dixie GoldInc.

Dixie Gold Inc. (TSXV: DG) is a publicly traded juniorexploration company holding a portfolio of mining-related interests inCanada. For more information, please visit www.dixiegold.ca

On Behalf of the Board ofDirectors

Ryan Kalt
Chief Executive Officer
Dixie Gold Inc.
T: 604.687.2038

Forward-Looking Statements

This news release contains forward-looking statementswithin the meaning of Canadian securities laws. Some of theforward-looking statements may be identified by the use offorward-looking words. Statements that are not historical in nature,including the words "anticipate," "expect,""suggest," "plan," "believe,""intend,", “intention” "estimate,""target," "project," "should,""could," "would," "may,""will," "forecast" and/or other similarexpressions are intended to identify forward-looking statements.Forward-looking statements address future eventsand conditions and therefore involve inherent risks and uncertainties,including but not limited to plans, activities and results related tothe Issuer’s exploration projects, as well as with regards tocertain uncertainties and risks as pertains to any and all explorationwork, including exploratory drilling, without limitation, at theIssuer’s Preston Uranium Project JV and/or other work, plans orclaim composition of the Issuer’s other projects, which include,without limitation but with reference to this news release, the RedLake Project, the Phoenix Lithium Project and those miningdispositions held by the Issuer in Saskatchewan by way of thereferenced Rottenstone region, as well as forward-statements to anycorporate developments and/or strategies, which may include capitalplans and/or expenditure plans and/or other matters related to anyfuture capital sourcing and/or capital allocation. Actual results maydiffer materially from those currently expected or forecast in suchstatements.

Neither the TSXVenture Exchange nor its Regulation Services Provider (as that term isdefined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of thisrelease.

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