American Eagle Closes Option Agreement, Expanding Babine District Land Package to Approximately 9,283 Hectares

Rhea-AI Summary

American Eagle Gold (OTCQB: AMEGF) has closed an option agreement with Eagle Plains Resources covering three claim groups adjoining its NAK copper-gold porphyry project in British Columbia’s Babine Porphyry District. Conditional TSX Venture Exchange approval has been received, with final approval pending.

The NAK Project land package rises from approximately 1,632 hectares to about 9,283 hectares (around 470%), including optioned ground and independently staked claims. American Eagle now holds, or can earn, interests in roughly 6,142 hectares, or about 62.5%, of the 9,834-hectare Morrison land package formerly held by Pacific Booker Minerals.

American Eagle may earn an initial 60% interest by funding C$4.85 million in exploration, paying C$400,000 cash and issuing 1.2 million shares over six years to December 31, 2031, after an initial C$20,000 cash payment and 50,000 shares at closing. The interest may be increased to 80% via a one-time C$1 million payment. Eagle Plains retains a 2.0% net smelter return royalty, half of which can be repurchased for C$2.5 million. American Eagle, with about C$50 million in cash, remains operator without an operator fee during the earn-in and plans a 55,000‑metre drill program at NAK through April 2027.

Positive

• NAK land package expanded ~470% from about 1,632 ha to 9,283 ha
• Control over Morrison district optioned/held ground totals ~6,142 ha (~62.5% of 9,834 ha)
• Earn-in up to 80% interest in three claim groups adjacent to NAK
• Strong treasury approximately C$50 million in cash to fund exploration
• Large drill program roughly 55,000 metres planned through April 2027, about 80 holes
• No operator fee payable by American Eagle during the earn-in period

Negative

• Earn-in commitments C$4.85 million exploration, C$400,000 cash, 1.2 million shares over six years
• Additional payment for 80% one-time C$1 million, up to half in shares
• Royalty burden 2.0% net smelter return, 1.0% buyback costs C$2.5 million
• Regulatory condition agreement still subject to final TSX Venture Exchange approval

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Highlights:

• The NAK Project land package has increased from approximately 1,632 hectares to approximately 9,283 hectares, a roughly 470% increase, through the closing of the option agreement with Eagle Plains Resources Ltd. and the Company's independent staking of open ground in the Morrison area.

• American Eagle now controls approximately 6,142 hectares, or roughly 62.5%, of the 9,834-hectare Morrison land package formerly held by Pacific Booker Minerals.

• The optioned claims lie along trend from, and within 4.5 kilometres of, the NAK deposit, with road access and nearby hydro transmission lines.

• Prior work on the optioned ground has identified geophysical and geochemical anomalies coincident with Babine Igneous Suite intrusive rocks, on ground that has seen limited modern drilling. Target generation will apply the geological model developed through more than 90,000 metres of drilling at NAK and run alongside the 55,000-metre NAK drill program.

• The transaction has closed and received conditional approval from the TSX Venture Exchange, and remains subject to final approval. American Eagle is operator and pays no operator fee during the earn-in period.

Toronto, Ontario--(Newsfile Corp. - August 27, 2026) - American Eagle Gold Corp. (TSXV: AE) (OTCQB: AMEGF) ("American Eagle" or the "Company") announces that it has closed the previously announced option agreement with Eagle Plains Resources Ltd. (TSXV: EPL) (the "Agreement"), under which American Eagle may earn up to an 80% interest in three claim groups adjoining its NAK copper-gold porphyry project ("NAK" or the "NAK Project") in British Columbia's Babine Porphyry District, approximately 70 kilometres northeast of Smithers. The transaction has received conditional approval from the TSX Venture Exchange.

Together with the Company's independent staking of open ground in the broader Morrison area, the closing increases the NAK Project land package from approximately 1,632 hectares to approximately 9,283 hectares, a roughly 470% increase. American Eagle now holds, or holds an option to earn an interest in, approximately 6,142 hectares, or roughly 62.5%, of the 9,834-hectare Morrison land package formerly held by Pacific Booker Minerals. This ground was first consolidated by Noranda following the discovery of the Bell and Granisle deposits, and much of it has seen limited systematic exploration, as historical work concentrated on the known deposits.

"Closing this agreement gives NAK a larger footprint in the Babine district," said Anthony Moreau, Chief Executive Officer of American Eagle. "The drilling we have completed at NAK, more than 90,000 metres, has shaped our understanding of how mineralized systems in this district are expressed in the geology and geophysics. We applied that understanding across the district's available ground, and the claims we have now consolidated were the best fit: the right intrusive rocks, coincident geophysical anomalies, and very little drilling. With approximately $50 million in cash, we can advance this ground without slowing the NAK program. Our focus remains discovery, first at NAK and now across the expanded land package."

View Map of Expanded NAK Project Land Package

Watch Video Discussing the Land Consolidation

View July 28, 2026 News Release Announcing the Option Agreement

Rationale for the Expansion

Drilling at NAK has shown that copper-gold mineralization begins at surface, extends to depth, and occurs across a larger footprint than shallow historical drilling suggested, consistent with the district's Bell, Granisle and Morrison deposits. The Company's work on the Babine Igneous Suite intrusions, their alteration, and the geophysical expression of mineralized rocks at NAK forms the basis of a targeting framework that the Company has applied to the expanded land package. The optioned ground fits that framework, with geophysical anomalies coincident with prospective geology, and hosts the two mineralization styles logged at NAK: stockwork porphyry copper-gold mineralization associated with biotite-feldspar porphyry intrusions, and copper-gold breccia pipes of the type that form the core of the nearby Hearne Hill deposit. Less than five kilometres from the NAK deposit, the ground could be explored using the roads, camps, equipment and technical staff already in place at NAK.

Prior work on the optioned ground includes a 286 line-kilometre high-resolution airborne magnetic survey, more than 32 line-kilometres of closely spaced soil sampling, and prospecting that returned copper-mineralized rock samples. A second claim group farther south has returned gold-in-till with grain morphology suggestive of a proximal bedrock source, and a float sample carrying copper and gold at porphyry tenor. The Company's 2026-2027 program will begin with compilation of existing data and 3D inversion of the magnetic data, integrated with its datasets from NAK, followed by infill soil sampling, mapping, prospecting and ground geophysics across priority anomalies to define drill targets. This work will be carried out alongside the 55,000-metre NAK drill program and is not expected to divert resources from it.

The expanded NAK Project lies within the traditional territory of the Lake Babine Nation ("LBN"), where American Eagle has operated since 2022 under an Exploration Agreement that has since been expanded and updated three times. The expansion was undertaken with the knowledge and support of the LBN and the Company's strategic investors, and the Company will engage with the LBN on exploration plans across the expanded position.

Transaction Summary

In connection with the closing, the Company paid $20,000 in cash and issued 50,000 common shares to the optionor. American Eagle may earn an initial 60% interest by completing $4,850,000 in exploration expenditures, paying $400,000 in cash, and issuing 1,200,000 common shares, staged over six years ending December 31, 2031. Obligations through the end of 2027 total $600,000 in expenditures, $100,000 in cash and 200,000 shares. Timelines may be accelerated at the Company's discretion, and the Company may increase its interest to 80% through a one-time payment of $1,000,000, up to half of which may be paid in shares. Upon exercise of the initial option, the optionor will retain a 2.0% net smelter return royalty, 1.0% of which may be repurchased for $2,500,000. American Eagle is operator throughout and pays no operator fee during the earn-in period. The Agreement remains subject to final approval by the TSX Venture Exchange.

About American Eagle Gold Corp.

American Eagle is advancing the NAK copper-gold porphyry project and surrounding land package, totalling approximately 9,283 hectares, in British Columbia's Babine Porphyry District. The Company has approximately $50 million in cash and four cornerstone strategic shareholders. American Eagle is currently conducting an approximately 55,000-metre drill program, expected to run through April 2027, with three rigs operating continuously across the seasons. Approximately 80 drill holes are planned, with the objective of expanding tonnage, extending known higher-grade zones and identifying new ones. The Company is funded for multiple years from cash on hand, and the current program is designed to support future technical studies on NAK.

Anthony Moreau, Chief Executive Officer

416.644.1567 | amoreau@oregroup.ca | www.americaneaglegold.ca

Q.P. Statement

Mark Bradley, B.Sc., M.Sc., a Certified Professional Geologist and an independent "qualified person" for the purposes of NI 43-101, has verified and approved the technical information contained in this news release. Certain technical information regarding the optioned claims is derived from the optionor's disclosure and historical government records (MINFILE and ARIS) and has not been independently verified by the Company. Mineralization on adjacent and nearby properties, including the Hearne Hill, Morrison, Bell and Granisle deposits, is not necessarily indicative of mineralization on the Company's properties.

Cautionary Note Regarding Forward-Looking Statements

This news release contains certain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). All statements other than statements of historical fact are forward-looking statements and are frequently identified by words such as "plans," "expects," "anticipates," "intends," "believes," "estimates," "targets," "potential," "will," "may," and "could." Forward-looking statements in this news release include, without limitation, statements regarding: the anticipated benefits of the expanded NAK Project land package; the completion of the exploration expenditures, cash payments and share issuances required under the Agreement; the Company's ability to earn a 60% interest and, at its election, an 80% interest in the optioned claims; receipt of final TSX Venture Exchange approval; the exploration potential of the optioned and staked ground and the Company's plans to define drill targets on it; the potential for operating synergies with NAK; the scope, timing and completion of the Company's approximately 55,000-metre, approximately 80-hole drill program at NAK and its anticipated continuation through April 2027; the sufficiency of the Company's funding; continued engagement with the Lake Babine Nation; and the Company's intention to advance NAK toward future technical studies.

Forward-looking statements reflect management's expectations as at the date of this news release and are based on assumptions that management believes are reasonable, including that the Company will have the financial resources to meet its obligations under the Agreement; that exploration on the optioned and staked ground can be carried out as planned; that the geological interpretation of the Babine Porphyry District is materially correct; and that fieldwork, permits, land access, funding and stakeholder relationships, including with the Lake Babine Nation, continue without material interruption. Actual results may differ materially. In particular, the Company is under no obligation to complete the earn-in and may elect not to do so; the Company's interest in the optioned claims is contingent on satisfying the terms of the Agreement; no mineral resource or mineral reserve has been estimated on the optioned or staked ground and any mineralization identified to date may never be shown to be economic; technical information regarding the optioned claims is derived from the optionor's disclosure and from historical government records and has not been independently verified by the Company; mineralization on adjacent or nearby properties is not necessarily indicative of mineralization on the Company's properties; and the Company remains subject to the risks inherent in mineral exploration, including permitting, environmental, community and Indigenous engagement, weather and wildfire, contractor and equipment availability, metal price volatility, and its ability to raise additional financing, as more fully described in the Company's continuous disclosure documents filed on SEDAR+ at www.sedarplus.ca.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as at the date of this news release. The Company undertakes no obligation to update or revise them except as required by applicable securities laws. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311697

FAQ

What does American Eagle Gold (AMEGF) gain from closing the NAK option agreement on August 27, 2026?

American Eagle gains the ability to earn up to an 80% interest in three claim groups adjoining its NAK project. According to American Eagle, the deal expands the NAK land package to about 9,283 hectares and significantly increases its control of the Morrison district.

How much did American Eagle Gold (AMEGF) pay at closing of the Eagle Plains option agreement?

At closing, American Eagle paid C$20,000 in cash and issued 50,000 common shares to Eagle Plains. According to American Eagle, these payments initiate an earn-in requiring further staged exploration spending, additional cash payments and share issuances through December 31, 2031.

What are the total earn-in obligations for American Eagle Gold (AMEGF) under the NAK option agreement?

American Eagle may earn an initial 60% interest by spending C$4.85 million on exploration, paying C$400,000 cash and issuing 1.2 million shares over six years. According to American Eagle, obligations through 2027 total C$600,000 in expenditures, C$100,000 cash and 200,000 shares.

How large is the expanded NAK Project land package controlled by American Eagle Gold (AMEGF)?

The NAK Project land package now totals approximately 9,283 hectares after the option and additional staking. According to American Eagle, it controls or can earn interests in about 6,142 hectares of the 9,834-hectare Morrison land package, or roughly 62.5%.

What royalty terms apply to the optioned claims in American Eagle Gold’s (AMEGF) NAK expansion?

Upon exercise of the initial option, Eagle Plains retains a 2.0% net smelter return royalty on the optioned claims. According to American Eagle, 1.0% of this royalty can be repurchased for C$2.5 million, providing partial flexibility on future production costs.

How is American Eagle Gold (AMEGF) funding the expanded NAK and Morrison exploration programs?

American Eagle reports having approximately C$50 million in cash to fund its exploration programs. According to American Eagle, this treasury supports the 55,000‑metre NAK drill campaign running to April 2027 and work on the newly optioned and staked ground.

What is the timeline and scale of the NAK drill program for American Eagle Gold (AMEGF)?

The company is conducting an approximately 55,000‑metre drill program at NAK, expected to run through April 2027. According to American Eagle, about 80 drill holes with three rigs aim to expand tonnage, extend higher-grade zones and identify new mineralized areas.